What happens to my Riester contract?
With the pension reform act (BGBl. 2026 I No. 156, promulgated on 29 May 2026), the Riester pension is replaced for new contracts. From 1 January 2027 providers may offer the new products, and no new Riester contracts can be signed. Millions of existing contracts continue, however. This article shows the options Riester savers have (as of 24 September 2026).
Option 1: continue with grandfathering
Riester contracts signed before 1 January 2027 are grandfathered. You can continue your contract under the previous subsidy rules. That can make sense if your contract has favourable terms, such as a high guaranteed interest rate from earlier years, or if the costs have largely been paid already. With many older contracts, acquisition costs were charged in the first years; switching would not recover this upfront payment.
Option 2: switch to the new subsidy system
According to the information on the reform, switching to the new subsidy system is to be optional. The new subsidies then apply: 50 cents per euro up to 360 €, 25 cents per euro up to 1,800 €, at most 540 € basic subsidy, plus up to 300 € child subsidy per child. People with children or who previously struggled to reach the Riester minimum contribution can benefit. How the switch works technically and whether costs arise depends on your provider and your contract.
Option 3: switch to the standard product
Every provider of subsidised pension products – except building societies – must also offer a standard product. The standard depot is simply structured, designed for online sign-up and invests using a life-cycle model: the closer retirement gets, the more money is moved from growth-oriented to safer investments. Effective costs are capped at 1.0 % a year. Switching to a standard product automatically puts you under the new subsidy system. In addition, a standard depot run by a public body is planned.
Old and new subsidies compared
Under Riester, the full basic subsidy depended on paying in a certain percentage of your previous year's income; if you paid less, you only received a proportional subsidy. In the new system, support is directly linked to your own contribution: every euro up to 360 € brings 50 cents, every further euro up to 1,800 € brings 25 cents. That is easier to understand and rewards small contributions in particular. On top comes the child subsidy of 1 € per euro up to 300 € per child, fully used with just 25 € a month. The self-employed are now eligible as well. And instead of a compulsory full contribution guarantee, you can choose between products with a 100 per cent guarantee, an 80 per cent guarantee and accounts with no guarantee at all.
Questions to clarify before switching
- What costs does my existing contract still have? Ongoing costs matter, not those already paid.
- Which guarantees would I give up? An old contract with a high guaranteed rate can be worth more than it looks.
- How high would my new subsidy be? Compare the previous Riester subsidy with the new basic and child subsidies.
- How many years until retirement? The longer the term, the more return potential without a guarantee requirement matters.
- Are there switching costs? Ask your provider in writing for all costs.
A rule of thumb
Young savers with a long remaining term, families with children and contracts with high ongoing costs are typical candidates for a switch. Older contracts with high guarantees and a short remaining term, on the other hand, are often better left as they are. There is no one-size-fits-all answer; if in doubt, independent advice, for example from a consumer advice centre, can help.
Calculate what the new system would deliver for your contribution with the retirement savings account calculator. All the rules of the reform are in the guide Retirement Savings Account 2027. This article is not investment or legal advice.