Altersvorsorgedepot for Expats: Germany’s New State-Subsidised Pension (2027)
SHORT ANSWER
The Altersvorsorgedepot is Germany’s new state-subsidised pension depot, available from 1 January 2027. You invest in funds or ETFs, and the state adds up to €540 a year – plus up to €300 per child. Expats who work in Germany can use it too. Calculate your subsidy below in under a minute.
Basic subsidy
€540
per year at most
Per child
€300
per year at most
Minimum
€10
per month
Altersvorsorgedepot calculator: how much does the state add?
Three questions – your monthly amount, your children’s ages and your income. The result shows the subsidy and the tax refund you can expect per year.
What could this be worth at retirement?
Simplified illustration based on the Pension Reform Act passed in 2026, for contracts from 1 January 2027 – not tax or investment advice. Tax refund estimated with an average tax rate for your income range.
How the subsidy works
| Your contribution per year | Basic subsidy | Per child | Subsidy rate without children |
|---|---|---|---|
| €120 (€10 a month) | €60 | €120 | 50% |
| €360 (€30 a month) | €180 | €300 | 50% |
| €1,200 (€100 a month) | €390 | €300 | 33% |
| €1,800 (€150 a month) | €540 | €300 | 30% |
| €3,000 (€250 a month) | €540 | €300 | 18% |
- Basic subsidy: 50% on the first €360 you pay in per year and 25% on the next €1,440 – at most €540.
- Child subsidy: €1 for every euro you pay in, up to €300 per child and year, for every child you receive child benefit (Kindergeld) for.
- Starter bonus: a one-off €200 if you are under 25.
- Tax refund: contributions up to €1,800 plus the subsidies are tax-deductible. The tax office checks automatically whether this saves you more than the subsidy – if so, you get the difference back. With a higher income, that is often several hundred euros a year.
Our tip: the first €30 a month bring the highest subsidy rate – 50%. With €150 a month you get the full basic subsidy. Anything above that still grows tax-deferred, but without extra subsidy.
Who can open an Altersvorsorgedepot?
Your nationality does not matter – what counts is that you are part of the German system:
- Employees who pay into the German statutory pension insurance, including trainees
- Civil servants, judges and soldiers
- New: many self-employed people and freelancers
- Spouses of eligible persons, with their own contract
You can pay in at least €10 and up to €570 a month (€6,840 a year) per contract. The money stays invested until retirement – in funds or ETFs, with a cost cap of 1% a year for the standard product.
How the money is paid out
- Payout starts at 65 at the earliest and at 70 at the latest.
- As a payout plan until at least 85, or as a lifelong pension.
- Up to 30% can be taken as a lump sum at the start.
- The subsidised part is taxed in retirement at your personal tax rate – usually lower than while you work.
Altersvorsorgedepot for expats: what if you leave Germany?
This is the most important question for internationals. Your depot can usually stay in Germany, but you no longer receive new subsidies once you leave the German system. If you withdraw the money early or under certain conditions abroad, subsidies and tax advantages may have to be paid back.
Before you sign: if there is a real chance you will leave Germany, compare the Altersvorsorgedepot with an ETF savings plan or a company pension. We go through your plans with you and show you which option keeps the most money for you.
Altersvorsorgedepot, ETF savings plan or pension insurance?
| Altersvorsorgedepot | ETF savings plan | Pension insurance | |
|---|---|---|---|
| State subsidy | Yes – up to €540 plus €300 per child | No | No (only with company pension) |
| Access to your money | From 65 | Any time | Flexible, best from 62 |
| Tax while saving | Deferred | Partly every year | Deferred |
| Tax at payout | Personal tax rate | Flat tax on gains | Reduced, often half |
| If you leave Germany | Subsidies stop, may be reclaimed | No issue | Usually no issue |
More about all pension options for expats – including our pension gap calculator – on our pension and investing page.
Altersvorsorgedepot for expats – how we help
We calculate your real subsidy and tax refund, check what happens with your plans abroad and compare the Altersvorsorgedepot with your other options. Everything in your language, reachable 24/7 via WhatsApp – and free of charge until you decide.
Book a free callFrequently asked questions
When does the Altersvorsorgedepot start?
Contracts can be opened from 1 January 2027. The law (Altersvorsorgereformgesetz) was passed by the Bundestag on 27 March 2026 and approved by the Bundesrat on 8 May 2026.
How much subsidy do I get?
Up to €540 a year as a basic subsidy, plus up to €300 per child you receive child benefit for, plus a one-off €200 if you are under 25. With a higher income, you also get a tax refund on top.
Can expats open an Altersvorsorgedepot?
Yes. What counts is that you pay into the German pension system as an employee, are a civil servant, or – under the new rules – self-employed. Your nationality does not matter.
What happens if I leave Germany?
Your depot can usually stay, but new subsidies stop. In some cases subsidies and tax advantages have to be paid back, for example if you withdraw the money early. Talk to us before you sign if moving abroad is a possibility.
What happens to my Riester contract?
Existing Riester contracts continue unchanged. You can keep them, or switch your savings into an Altersvorsorgedepot. A switch cannot be reversed, so check the costs and guarantees of your old contract first.
Is the Altersvorsorgedepot worth it if I pay only €10 a month?
Yes – the subsidy rate is highest for small amounts: on the first €360 a year, the state adds 50%. With children, the child subsidy can even exceed your own contribution.