What you need to consider with your new retirement savings account

Successor for “Riester pension” What needs to be taken into account when it comes to retirement savings accounts As of: October 22nd, 2026 • 1:09 p.m

In addition to the capital pension, there will also be a new state-funded supplementary pension, the retirement savings account. It is intended to replace the “Riester pension”. The promise: more stocks, ETFs and return opportunities.

Retirement almost always feels a long way away, and it's best to deal with this issue later. To make it clear how great the need for action would actually be, just take a look at the forecast from the statutory pension insurer.

You get it by letter and you can see straight away how much you can expect, or better: how little. The average pension income in this country is 1,900 euros per month. And this is only available to those who have earned an average of around 4,000 euros per month over the years. The difference between the two numbers is the pension gap, and a good 2,000 euros is no exception.

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The gap is now to be filled with the help of the so-called retirement savings account. From January, this will replace the state-funded supplementary pension previously known as “Riester”. Banks and neo-brokers are already drumming up enthusiasm with slogans like “Whoever rips, rusts” or “Let something happen.” The impression conveyed: Complete it quickly, preferably this year!

However, this is not necessary at all, on the contrary. Because not all providers are at the start this year. Many will only enter the market in the next few months and even well into next year. You can also apply for state funding retrospectively for the entire year until at least the end of 2027.

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Niels Nauhauser, financial expert at the Baden-Württemberg consumer advice center, warns against many offers from the financial industry. “In sales, we simply sell what brings commission,” explains Nauhauser in the ARD business podcast Plusminus. Anyone who gets involved in sales talks is often sold unnecessarily expensive products.

The consumer advocate finds it annoying that the so-called standard depot, for which the costs are capped by law at one percent, is often simply not actively offered. It is also planned that a public provider, for example the Bundesbank, should compete with private service providers with such a standard depository.

However, such a public provider is not yet in sight. This will probably not work at the beginning of 2027. Another reason to wait and not rush into one of the advertised offers.

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Some banks or brokers are currently advertising costs of little more than zero percent before the start. However, consumer advocates are convinced that these are likely to be decoy offers. After a certain period of time, the providers can adjust the conditions upwards. You are then allowed to cancel as a customer, but do you really do that?

Nevertheless, experts advise not to lose sight of the costs, because a large part of your pension depends on them. Over the course of decades, just half a percentage point in higher costs can amount to tens of thousands of euros. The costs quickly eat up all the government funding - then you can put your money directly into an ETF.

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The aim of the new retirement savings account is to provide better retirement provision compared to the old Riester model. According to consumer advocate Nauhauser, government funding is now actually becoming more advantageous in many cases, especially if you can afford a higher additional payment.

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This income dependency no longer applies with the new model - it doesn't matter whether you earn a lot or little. What you end up with only depends on what you deposit. And so the old Riester subsidy is actually only beneficial for low earners.

Everyone else should think carefully about whether it would be better to switch to the new model. “Under no circumstances should you terminate the contract!” advises expert Nauhauser. Then the funding that has been accumulated so far would be lost. Therefore, transfer the old funding agreement to a new one.

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There are hardly any general statements regarding the retirement provision model. In the Plusminus podcast we try to estimate the possible final results using a model calculation. In our example calculation we compare the lowest and highest deposit options.

In our model, anyone who pays 120 euros a year for 30 years and receives 60 euros in funding from the state will ultimately have assets of 13,375 euros. Prerequisite: The ETFs will develop as many financial experts expect in the long term, namely with an annual return of an average of six percent.

On the other hand, anyone who pays the maximum amount can reach a good 208,000 euros. The money is not deposited into the account en bloc, but spread over time. This means that an additional monthly pension is paid out, namely 90 euros for the minimum deposit and around 1,250 euros for the maximum deposit amount. At least the latter could then noticeably help to actually close the pension gap in the end.

This topic in the program: tagesschau.de | Retirement savings account: Do I have to go into it now? | Oct 22, 2026 | 9:25 a.m