Germany is changing its retirement system. In 2027, the new Pension Depot (Altersvorsorgedepot) will start. It is designed to replace the old Riester system with something better: more profit, lower costs, and full ETF power.
Why is it better than Riester? for Expats in Germany
- No Capital Guarantee: Your money can stay 100% in ETFs. This leads to much higher returns over time.
- Lower Costs: You don't pay for expensive insurance fees or high sales commissions.
- Great Tax Benefits: You save on taxes today while your money grows for your future.
Retirement for the Digital Age
For years, the German Riester pension was too complex and too expensive. The new Pension Depot follows a simple idea: Invest like a professional, but with state support.
You choose a depot, pick your ETFs, and the government helps you with subsidies or tax deductions. It is finally a system that fits the life of modern expats and professionals who want transparency and high performance.
100% ETF Focus
Use the growth of global stock markets without the weight of traditional insurance structures.
Flexible & Portable
Change your contributions at any time. It's your money and your depot.
Maria's Story: Why waiting for 2027 is worth it
Maria is a 32-year-old expat working in IT. She wanted to save for her pension but was unhappy with the 'Riester' plans her friends told her about. "The costs are too high, and the profit is too low because of the guarantees," she noticed.
With the new reform, Maria can finally use a modern way to save. Instead of paying for expensive insurance, her money goes directly into a global ETF portfolio. The German state still supports her with subsidies, but Maria decides how her money is invested. For Maria, this means much more money when she retires, simply because the unnecessary insurance costs are gone.
Cost Comparison: Riester vs. Pension Depot
Why is the switch better? The main reason is the cost. While classic Riester insurance often has high annual fees, the Pension Depot will be much cheaper. Here is an example of what this means over 30 years:
Classic Riester
Final capital after 30 years*
Pension Depot
Final capital after 30 years*
*Example: €150/month savings, 6% return before costs. Riester (1.8% costs) vs. Depot (0.5% costs). Values rounded.
Requirements for Expats
- Valid German Address (Anmeldung)
- German Bank Account (IBAN)
- German Tax ID
- Tax Residency: You must live and pay taxes in Germany to get the immediate tax benefits and subsidies.
- Social Security: You are usually an employee or a required member of the German state pension system.
- Residence Permit: You have a valid residence permit or plan to stay in Germany for a long time.
- No Refugee Status: These subsidies are for regular residents and workers. Different rules apply for other statuses.
Frequently Asked Questions
When does the Pension Depot start exactly?
What happens to my existing Riester contract?
Is my money safe without a guarantee?
Who can open a Pension Depot?
Can I choose my own ETFs?
How is it taxed when I retire?
Related Topics:
Price Transparency
In Germany, insurance premiums are regulated by law. This means you pay the same price whether you buy directly from an insurance company or through a broker like me. My expert advice and personal support are already included in the premium – there are no extra costs for you.