Grandfathering: what does not change for your Riester contract from 2027
The most important rule first: no existing Riester contract is terminated, altered or automatically transferred by the reform. If you do nothing, from 2027 you have the same contract with the same rules as today.
What grandfathering means
The Retirement Provision Reform Act introduces the Altersvorsorgedepot (AVD, the new state-subsidised pension securities account) on 1 January 2027 and closes Riester to new business. For the roughly 15 to 16 million existing contracts the rule is: providers continue them and the state keeps subsidising them under the old Riester rules. Basic allowance (€175), child allowance (€300 per child for contracts from 2008, €185 for older children), special-expense deduction up to €2,100, the contribution guarantee and the payout rules all remain.
There is no deadline by which you have to decide anything. The transfer into an Altersvorsorgedepot is an option that exists permanently from 2027 – not an obligation and not a window.
What grandfathering does not mean
- It does not protect you from your own contract's costs. Ongoing costs, guarantee costs and fund costs remain as agreed in the contract.
- It does not lift the subsidy to the new system's level. The higher subsidy of the Altersvorsorgedepot (up to €540 basic allowance) only applies there. In a Riester contract it stays at €175.
- It does not allow double subsidies. Under the published rules the state subsidy is not granted twice. Anyone paying into an Altersvorsorgedepot from 2027 while also contributing to a Riester contract does not receive allowances for both.
- It does not prevent the provider from offering the new subsidy scheme. Providers may offer to continue an existing contract from 2027 under the new subsidy rules. According to providers this switch is irrevocable.
Who will write to whom
Providers will inform existing customers about the reform in the coming months. These letters usually contain three things: a note on grandfathering, an offer to switch the existing contract to the new subsidy scheme, and possibly the provider's own Altersvorsorgedepot. Such a letter is information from the provider, not a request. You only need to reply if you want to change something.
Quick answers
Do I have to decide anything by the end of 2026?
No. The contract continues unchanged from 2027. The transfer into an Altersvorsorgedepot is possible permanently from 2027.
Can a Riester contract and an Altersvorsorgedepot be subsidised at the same time?
Not under the published rules. The subsidy is not granted twice.
Do I lose allowances if I do nothing?
No. Allowances already received stay; future allowances continue under the Riester rules as long as you meet the minimum contribution.
What you can check now
- When was your contract signed (before or after 2008 – this determines the child allowance)?
- What ongoing costs does your latest annual statement show?
- Has your provider already announced whether it will offer the new subsidy scheme within the existing contract?
- Are you paying the minimum own contribution (4% of previous year's gross income minus allowances, at least €60) so the full allowance is paid?
- Retirement Provision Reform Act (Altersvorsorgereformgesetz), Bundestag 27 March 2026, Bundesrat 8 May 2026, promulgated 26 May 2026 (BGBl. 2026 I No. 156)
- Federal Ministry of Finance, FAQ on the reform of private pension provision
- Provider publications (Allianz, ING, MLP, Union Investment) on implementation, July/August 2026
This page provides general information about statutory rules. It is not legal, tax or investment advice and makes no recommendation for any individual contract. For a personal assessment, consumer advice centres (Verbraucherzentralen) or licensed advisers are the right address – where to get advice.