Allowances on transfer: what stays, what is skipped in the transfer year
The most common worry about the transfer is losing allowances. It is unfounded – with one exception that is not a cut but prevents double counting.
What remains
The transfer into an Altersvorsorgedepot is a subsidy-neutral use. All basic allowances, child allowances, career-starter bonuses and tax benefits you have received since the contract started remain in the transferred capital and do not have to be repaid. The allowance account at the Central Allowance Office (ZfA) continues; your allowance number stays.
What applies in the transfer year
The transferred capital is not subsidised again in the year of the transfer. That is logical: it was already subsidised in previous years and is not counted a second time as a contribution. Ongoing contributions you pay into the Altersvorsorgedepot from 2027 are subsidised in the same year under the new rules.
| Item | Riester (until 2026) | Altersvorsorgedepot (from 2027) |
|---|---|---|
| Basic allowance | €175 at 4% of previous year's gross income (max. €2,100 contribution incl. allowances) | 50% on the first €360 of contributions (€180) plus 25% on €360–1,800 (€360) = max. €540 |
| Child allowance | €300 per child (born 2008 or later), €185 for older children | 100% of the contribution up to €300 per child entitled to child benefit |
| Career starter | €200 once under 25 | €200 once under 25 |
| Minimum contribution for the full allowance | 4% of previous year's gross income minus allowances, at least €60 | at least €120 per year; full basic allowance at €1,800 |
| Tax deduction ceiling | €2,100 special expenses | €6,840 special expenses; better-of test allowance vs. tax |
| Eligible persons | compulsorily insured, civil servants, indirectly eligible | additionally the self-employed and freelancers |
The table shows rules, not results. For a family with children and a low income the comparison looks different than for a single high earner. The comparison in figures works through three situations.
Quick answers
Do I have to file a new allowance application at the new provider?
Yes. The standing allowance application is filed with the new provider; the allowance number stays the same.
Do I get allowances for 2027 if I transfer during the year?
For the contributions you pay in 2027, yes. For the transferred old capital, no.
What you can check now
- How high are the allowances received so far according to your statement?
- Is your standing allowance application on file with the current provider?
- How many children entitled to child benefit do you have, and for how long?
- 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
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.