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Bundestag Approves Overhaul Replacing Riester With State‑Supported Pension Accounts

The plan swaps complex rules for simple state matches to draw more savers.

Overview

  • Lawmakers, who passed the bill Friday, set a 2027 launch for the new accounts subject to Bundesrat approval.
  • The subsidy switches to a match: 50 cents per euro saved up to €360 a year, then 25 cents per euro to €1,800, for a €540 maximum, with a €300 child bonus available from €25 a month.
  • The reform creates a standard investment account run under public rules with a 1% fee cap, and the government may appoint a public provider once regulations are written.
  • Savers can pick between no guarantee or guarantees at 80% or 100% of contributions, and payout plans may run only until age 85 to allow higher monthly sums.
  • Self‑employed workers become eligible, existing Riester contracts keep protection with an option to switch, and reactions split as consumer groups praise the low‑cost option, union researchers warn lower earners could lose ground, and insurers criticize a state competitor.