Germany has finalized the legislative framework to replace its long-standing Riester pension scheme with a new retirement savings model, the Altersvorsorgedepot, effective January 2027.
The Riester program, which has served as a cornerstone of private pension provision for decades, will officially cease operations at the end of this year.
The new system is designed to broaden access to tax-advantaged retirement savings beyond the traditional employee base, explicitly including self-employed individuals and civil servants who were previously excluded or limited under the old rules.
This structural shift aims to modernize the country’s private pension landscape and encourage broader participation in supplementary retirement planning.
The transition marks a significant policy pivot, moving away from the rigid, subsidy-heavy structure of the Riester model toward a more flexible, market-oriented approach.
Investors and financial advisors are now focusing on the implementation details and product offerings that will emerge under the new regime.