Overview
- Germany’s lower house approved a law creating the Altersvorsorgedepot, a state‑supported investment account meant to replace the Riester system, with a planned launch in 2027 if the Bundesrat consents.
- The scheme offers cash support on small monthly contributions and for children, including a 50% match on the first €25 a month, 25% on further payments up to €150, up to €300 a year per child, and a €200 bonus for people under 25.
- The law caps annual fees for a standard account at 1%, yet Verivox modeling shows costs at that level can eat much of the benefit over time, with a 25‑year‑old ending up with about €480,000 after 42 years versus roughly €496,000 in a no‑fee, non‑subsidized plan under the same return assumption.
- Independent calculations reported by t‑online indicate the biggest gains go to younger savers and families, such as a 20‑year‑old investing €100 a month who could receive over €2,700 a month in retirement, while a 50‑year‑old without children sees only a small edge over an ordinary ETF plan.
- Access is tightly limited, with withdrawals generally allowed from age 65 and early access triggering payback of subsidies and tax breaks, and the rules cap full subsidy support at €150 a month with total annual contributions limited to €6,840.