What the subsidy is worth – calculated for three families
The rules on the subsidy are on a separate page. Here are only figures: the same person, the same contribution, both systems. Without judgement.
Assumptions for all three cases: contribution from 2027, no career-starter bonuses, children entitled to child benefit, tax benefit only roughly (the better-of test decides in each case). All amounts per year.
Case A: single, €60,000 gross, €150 per month (€1,800 per year)
| Riester | Altersvorsorgedepot | |
|---|---|---|
| Basic allowance | €175 (minimum own contribution 4% = €2,400 minus allowance ≈ €2,225; at €1,800 the allowance is reduced pro rata to ≈ €141) | €180 + €360 = €540 |
| Child allowance | – | – |
| Allowances total | ≈ €141 | €540 |
| Tax effect (rough, marginal rate ≈ 35%) | special expenses up to €2,100: benefit ≈ €630, minus allowance → ≈ €490 additional | special expenses up to €6,840: at €1,800 ≈ €630, better-of test against €540 allowance → ≈ €90 additional |
| Total subsidy (rough) | ≈ €630 | ≈ €630 |
At this income and contribution both systems are close, because under Riester the tax benefit compensates the small allowance. The difference grows with the contribution: in the Altersvorsorgedepot up to €6,840 is deductible, under Riester €2,100.
Case B: family, €45,000 gross, two children, €100 per month (€1,200 per year)
| Riester | Altersvorsorgedepot | |
|---|---|---|
| Basic allowance | €175 (minimum 4% = €1,800 minus €775 allowances = €1,025; €1,200 suffices → full allowance) | €180 + 25% × €840 = €390 |
| Child allowance | 2 × €300 = €600 | up to €300 per child, in the amount of the contribution: 2 × €300 = €600 (if the contribution covers it) |
| Allowances total | €775 | €990 |
How exactly the new child allowance is set against the contribution (whether each child requires an additional €300 of contribution or the basic subsidy counts) follows from administrative rules that are not yet complete. This line will be updated.
Case C: low earner, €18,000 gross, two children, €25 per month (€300 per year)
| Riester | Altersvorsorgedepot | |
|---|---|---|
| Basic allowance | €175 (minimum 4% = €720 minus €775 allowances → base contribution of €60 suffices) | 50% × €300 = €150 |
| Child allowance | €600 | up to €300 per child, limited by the contribution: here ≈ €300 (total contribution €300) |
| Allowances total | €775 | ≈ €450 |
This shows the structural difference: the Riester child allowance is a fixed sum from the base contribution upwards, the new subsidy is proportional to contributions. With very small contributions and several children the old sum is higher; the contribution at which this reverses depends on the number of children.
What you can check now
- What contribution do you actually pay per year, and does it reach the minimum own contribution in the Riester contract?
- How many children entitled to child benefit do you have, and until when?
- Are you already using the special-expense deduction in your tax return?
- 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
- Own calculation based on the published subsidy rates; tax effects simplified
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.