Germany to launch state‑backed “Altersvorsorgedepot” retirement product in 2027

The German Bundestag and Bundesrat have approved a reform of privately funded retirement savings that will take effect on 1 January 2027. The new “Altersvorsorgedepot” replaces the Riester system, removes the mandatory capital‑guarantee, and allows investments up to risk class 5, including equities, infrastructure and real‑estate funds. State subsidies will match contributions up to 30 percent: 50 cents per euro on the first €360 and 25 cents on each additional euro up to a yearly limit of €1 800. The scheme also extends eligibility to self‑employed, freelancers and members of professional pension schemes, with extra allowances for children and young adults.

A publicly managed standard depot is to serve as a benchmark for private providers, but the government has not yet identified an operator, raising concerns that the public product may miss the 2027 launch date. Consumers are urged to prepare for the transition, including the option to transfer existing Riester contracts – of which there are about 16 million – into the new depot. Industry groups stress the need for personal advisory support to help savers assess the impact of the reform on their individual situations.