What happens to the balance on death
The question “what is left for my family?” is usually answered in small print in the contract terms. It is one of the bigger differences between Riester insurance, Riester savings plan and Altersvorsorgedepot.
Savings phase
| Contract | What survivors receive | Subsidy |
|---|---|---|
| Riester pension insurance | Usually the contract balance or the sum of contributions, depending on terms; sometimes only with agreed survivor protection | Allowances and tax benefits are reclaimed unless the spouse takes over the balance into their own certified contract |
| Riester fund or bank savings plan | The balance | as above: clawback unless the spouse takes over |
| Altersvorsorgedepot | The account assets are inherited | Subsidised capital: takeover by the spouse into their own Altersvorsorgedepot is subsidy-neutral; otherwise the subsidy is repaid and the rest goes to the heirs |
Payout phase
- Lifelong annuity (Riester or AVD): ends with death. Whatever is left stays with the insurer – unless a guaranteed payment period or survivor’s pension was agreed, which lowers the annuity factor.
- Drawdown plan (AVD, until 85): capital not yet paid out is inherited. The spouse can take it over subsidy-neutrally into their own Altersvorsorgedepot; otherwise the subsidy repayment rules apply to the subsidised part.
- After 85 with agreed residual annuity: as with the lifelong annuity.
What this means for the transfer
Anyone transferring from Riester insurance into the Altersvorsorgedepot and later choosing the drawdown plan makes the capital inheritable – and gives up lifelong protection in return. Anyone keeping the lifelong annuity protects themselves, not the heirs. Both are decisions about risk, not returns; the annuity factor guide shows the magnitudes.
Quick answers
Do my children get the Riester balance if I die before retirement?
With savings plans the balance, with insurance depending on terms; the subsidy is reclaimed in both cases because children cannot take over the balance subsidy-neutrally.
Can my spouse take over my Altersvorsorgedepot?
Yes, into their own certified Altersvorsorgedepot – then the subsidy is retained.
What you can check now
- What death benefit do your contract terms state for the savings phase?
- Is a guaranteed payment period or survivor’s pension agreed, and what does it cost in the annuity factor?
- Who should receive the capital if the worst happens – and can that person take it over subsidy-neutrally?
- Retirement Provision Reform Act (Altersvorsorgereformgesetz), Bundestag 27 March 2026, Bundesrat 8 May 2026, promulgated 26 May 2026 (BGBl. 2026 I No. 156)
- § 93 EStG (harmful use, spouse exception)
- § 3 no. 55c EStG (transfer to spouse)
- Contract terms of major Riester providers on death benefits
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.