New Riester pension 2027: what does it bring for your own home?
Last updated: · under the rules from 1 January 2027 · Publisher: INTERNA · responsible: Marc A. Schnitzler, in mortgage financing since 2005
From 1 January 2027 there is a new state-subsidised pension, often called the “new Riester pension”. The state adds up to €540 a year for eligible people if they save €150 a month, and up to €300 for each child. The subsidy is available for several types of contract: the pension investment account (Altersvorsorgedepot, with funds and ETFs), contracts with a guarantee and the home savings contract (Bausparvertrag, a savings contract with a building society). If you use the subsidised money for your own home, you are using the home-ownership pension (Eigenheimrente), until now mostly called Wohn-Riester.
The three subsidised routes from 2027
| Altersvorsorgedepot | Contract with a guarantee | Home savings contract (Eigenheimrente) | |
|---|---|---|---|
| How the money is invested | funds and ETFs | depending on the provider, with a guarantee | home savings balance |
| What is guaranteed | no guarantee on contributions, the balance moves with the stock market | at the start of the pension at least €80 or €100 of every €100 of contributions including subsidies | the balance does not move with the stock market |
| Money for your home | if the contract terms provide for it | if the contract terms provide for it | the contract is built for this |
| Loan on top | no | no | home savings loan after the building society has checked your case, interest rate fixed when you sign |
The subsidies are the same on all three routes. INTERNA only arranges the home savings contract. All routes compared in detail (in German).
What the subsidy brings per year
| Household | Contribution per month | from the state per year | in ten years |
|---|---|---|---|
| one person | €150 | €540 | €5,400 |
| one parent, 2 children | €25 | €750 | €7,500 |
| Couple, both working, 2 children | €150 each | €1,680 | €16,800 |
This is how it is calculated: 50 cents per euro on the first €360 a year, 25 cents per euro up to €1,800, at most €540. The child subsidy is as high as your own yearly contribution, at most €300 per child with child benefit (Kindergeld, the monthly state payment for children). Under 25 you also get a one-off €200. Without interest and contract costs. Table for every contribution.
How the subsidy goes into your home
- Before buying: the balance including subsidies becomes equity, for example for property transfer tax, notary and estate agent. How much equity you need.
- With an existing loan: the balance including subsidies pays off your mortgage. How the subsidy for repayment works.
- In your own house: money for energy-saving renovation by a specialist firm or alterations to remove barriers, from as little as €3,000.
The new rules for withdrawals for your home apply from 1 January 2028. Contributions from 1 January 2027 are subsidised, namely what you pay in during the respective year.
If you already have a Riester contract
Contracts signed before 1 January 2027 keep the previous subsidy until you switch. The switch happens at your request or automatically as soon as you sign a new subsidised contract from 2027. Then the new rules apply to all your contracts, and this cannot be undone. If you have paid in very little so far, you are sometimes better off in the old system. Your advisor calculates this with you before you sign. What to consider when switching.
How much subsidy does your household get? The subsidy calculator works out in one minute how much subsidy you can get. An advisor then checks with you whether everything fits your situation. This conversation is free of charge and in English.
Calculate your subsidyFrequently asked questions
Is there still a Riester pension from 2027?
From 1 January 2027 there are no more new contracts under the old Riester rules. They are replaced by the new subsidised pension with a basic subsidy of up to €540 instead of €175 until now. Existing contracts keep the previous subsidy until you switch or sign a new subsidised contract. Then the new rules apply to all your contracts.
Is the Eigenheimrente part of the new subsidy?
Yes. Eigenheimrente means using the subsidised money for your own home. This is also possible in the new system if the contract terms provide for it. With a home savings contract, this is the purpose of the contract.
How much subsidy is there with the new Riester pension?
Up to €540 basic subsidy a year for a monthly contribution of €150, up to €300 per child with child benefit and a one-off €200 for eligible people under 25.
Who gets the new subsidy?
Anyone who pays into the statutory pension insurance, for example as an employee, an apprentice or in a mini-job (Minijob, a small job with a low wage) at a company if you have not had yourself exempted from the pension insurance, plus civil servants. New from 2027: self-employed people without compulsory pension insurance who file a tax return for the year, and employed members of professional pension schemes, in each case under 67.
Read more
Sources
- Federal Ministry of Finance: questions and answers on the reform of private pensions (in German)
- Federal Law Gazette 2026 I No. 156: Altersvorsorgereformgesetz, the pension reform act (in German)
The money in the contract is meant for your retirement and your own home. If you have the subsidised savings paid out early, for example by cancelling the contract, you have to pay back the subsidies and tax benefits.
The examples explain the legal rules in simplified form. They do not replace tax or legal advice for your personal situation. Contract costs and interest are not included. This page was created with the help of artificial intelligence and translated from the German original. INTERNA is responsible for its content. More information