Four options for your Riester contract from 2027
From 2027 an existing Riester contract has four options. All four are permitted by law. This page puts them side by side without favouring any.
| Option | What happens | Subsidy | Costs | Reversible? |
|---|---|---|---|---|
| 1 · Continue | Contract runs unchanged, contributions continue | Riester rules: €175 basic allowance, €300 per child, deduction up to €2,100 | Contract costs as before | at any time into any other option |
| 2 · Contribution-free | No new contributions; balance stays invested | No new allowances; existing ones stay | Ongoing costs on the balance remain | yes, resume contributions or transfer later |
| 3 · New subsidy scheme in the contract | Contract stays with the provider, subsidised under the new rules from 2027 | New rules: up to €540 basic allowance, €300 per child | Contract costs remain; guarantee may remain | irrevocable according to providers |
| 4 · Transfer | Balance moves into an Altersvorsorgedepot at a provider of your choice | New rules from the following year; no renewed subsidy of the transferred capital in the transfer year | Old provider: €0 (contract ≥ 5 years) or max. €150; new provider: max. €150 | transfers between providers remain possible later |
Option 1: Continue
The contract stays as it is. Worth knowing: the Riester contribution guarantee continues, as do the payout rules (annuitisation, maximum 30% lump sum). The subsidy stays at today's level. For contracts with high ongoing costs and a long remaining term, the cost difference to the Altersvorsorgedepot compounds over the years; for contracts close to retirement with a guarantee it matters less. How much is shown by the example calculation in the switch check.
Option 2: Contribution-free
An informal letter to the provider is enough. The balance stays invested; no new allowances are paid. This option is often combined with a parallel Altersvorsorgedepot into which the savings rate flows from 2027. The ongoing costs of the Riester contract on the existing balance remain – that is the difference to a transfer.
Option 3: New subsidy scheme within the existing contract
The law allows providers to continue existing contracts under the new subsidy rules from 2027. Whether your provider does so is not in the law but in its offer. The switch is made by a declaration to the provider and, according to providers, is irrevocable. Product, costs and guarantee remain; only the subsidy logic changes.
Option 4: Transfer
The accumulated retirement capital is transferred as a cash value into an Altersvorsorgedepot. The previous provider does not have to consent. What is transferred is the cash value, not fund units; for insurance contracts this is the contractually defined transfer value, which can differ from the balance shown. Details: Why the full balance does not arrive.
Quick answers
Can I combine option 2 with a new Altersvorsorgedepot?
Yes. The Riester contract rests contribution-free and the subsidy flows into the Altersvorsorgedepot. Subsidising both contracts at the same time is not provided for.
Is the transfer tied to a deadline?
No. It is possible permanently from 1 January 2027.
What you can check now
- Does your provider offer option 3, and on what terms?
- How high is the transfer value on your statement compared with the balance?
- How many years remain until your planned payout?
- What ongoing costs in percent does your statement show?
- 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.