Up to 540 euros instead of 175 euros basic allowance, costs of 0.1 instead of 2 percent, full share quota instead of mandatory bonds – the new retirement savings account will replace the Riester pension from 2027. And it turns out significantly better than originally planned. What this means for 15.9 million Riester savers.
Riester contract transferred and up to 540 € funding secure.
From 2027, your Riester balance can be transferred to a retirement savings account with our broker finanzen.net ZERO – all previous allowances remain intact. Register now so you can be ready on January 1st.
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What replaces the Riester pension
The new retirement savings account eliminates the three biggest weaknesses of the Riester pension. The mandatory contribution guarantee no longer applies; savers can invest up to 100 percent in stock ETFs. Product costs fall drastically – a cost cap of 1 percent for standard products replaces the typical 2 to 3 percent at Riester. And the funding is radically simplified: 50 cents from the state for every euro paid in up to 360 euros per year, and 25 cents above that up to the upper limit of 1,800 euros.
Compared to Riester at a glance:
| Riester pension | Retirement savings account | |
|---|---|---|
| Contribution guarantee | 100% mandatory | None (optional 80/100%) |
| Typical costs/year | 2-3% | 0.1-1.0% |
| Equity quota | Usually less than 30% | Up to 100% via index funds (ETFs) |
| Financial support | Complex minimum contributions | 50 cents per euro |
| Payout | Min. 70% retirement | Freely selectable |
| Self-employed people | Excluded | Eligible |
The funding only flows from the day on which money is deposited. Every month without a retirement provision costs additional fees – and every month that your Riester balance is still with the old provider costs fees. Anyone who registers now for free at finanzen.net ZEROcan open immediately on January 1, 2027 and trigger the Riester transfer directly.
👋 to the retirement savings account calculator
Why the funding is higher than expected
The pension fund was improved in four points during the parliamentary process. The basic allowance was increased from 30 to 50 cents per euro. The full child allowance of 300 euros per child is now available from just 25 euros per month instead of 100 euros. The cost cap for standard products falls from 1.5 to 1 percent. And the self-employed – previously completely excluded – will be included in the circle of those eligible for funding for the first time. In addition, a public provider will offer its own standard depot.
The change in child allowances is particularly crucial for families with a small budget. In the first draft, a parent had to pay 100 euros per month to receive the full 300 euros per child. Now 25 euros is enough – this makes the funding accessible to low-income earners.
What happens to existing Riester contracts
All 15.9 million old contracts enjoy full grandfathering protection. Anyone who wants to keep their Riester contract can do so – the old funding system with fixed basic allowances of 175 euros and child allowances of up to 300 euros continues. Alternatively, savers can transfer their assets to the new system from 2027 without having to repay any allowances or tax advantages. The third option: close the contract and open a retirement savings account at the same time.
You should definitely not cancel. In the event of termination, all allowances and tax advantages will be reclaimed – this can quickly cost several thousand euros.
Sign a Riester contract in 2026?
Despite the improved child allowance in the new system, it may be worthwhile for low-income earners with several children to take out a favorable Riester fund savings plan before the end of 2026. In the old system, the fixed child allowances flow independently of the savings rate – this can still be more advantageous if personal contributions are very low. The window closes permanently on December 31, 2026.
Riester contract transferred and up to 540 € funding secure.
From 2027, your Riester balance can be transferred to a retirement savings account with our broker finanzen.net ZERO – all previous allowances remain intact. Register now so you can be ready on January 1st.
Your registration could not be saved.
Your registration was successful! We’ll get in touch with you.
🔒 No spam · Can be unsubscribed at any time · Your data is safe
Conclusion: Riester goes, the depot comes
After more than 20 years, the Riester era ends. The successor system is significantly more attractive than the first draft: higher allowances, lower costs, broader access. For most savers, the switch is worth it.
