The German Retirement Savings Depot (AVD) is a state-certified private pension product that was approved by the German Bundestag on March 27, 2026, and will come into effect on January 1, 2027. It replaces the Riester pension and is sometimes referred to as “Riester 2.0” or “Klingbeil Depot”.
Key features
The AVD allows direct investment in ETFs, actively managed funds, and bonds (risk classes 1–5). Unlike the Riester pension, there is no mandatory capital guarantee. A 100% equity allocation is possible.
Tax treatment
Contributions up to €6,840 per year are tax-deductible as special expenses. Growth during the savings phase is tax-free. Payouts in retirement are taxed at the individual’s personal income tax rate.
Cost ceiling
The standard depot has a maximum cost limit of 1.0% per annum — significantly cheaper than many previous Riester products.
Who is eligible for funding?
Employees, self-employed individuals, freelancers and civil servants — a significantly broader group than under the old Riester system.
Conclusion
The AVD is a modern, flexible retirement savings product that combines government subsidies with high-yield ETF investments. Those who start early benefit most from the power of compound interest.