Germany has finalized plans to replace its long-standing Riester pension scheme with a new retirement savings model, known as the Altersvorsorgedepot, effective January 2027.
The Riester program, which has been a cornerstone of private pension provision for decades, will cease to exist after December 31 of this year.
The new framework significantly expands eligibility beyond the traditional employee base.
Under the Riester system, benefits were largely restricted to salaried workers.
The successor model will allow self-employed individuals and civil servants to participate, unlocking a larger pool of potential contributors for financial institutions.
This structural change is expected to reshape the competitive landscape for private pension products in Germany.