July 9, 2026

Wohn-Riester Reform 2027: What Changes for Existing Contracts – and How to Decide Now

In short: On May 8, 2026, Germany's reform of private retirement savings was passed, which also affects Wohn-Riester (a state-subsidized home-ownership savings scheme). From 2027, higher subsidies, lower thresholds for funding renovations, and a shorter taxation period will apply. Anyone who signs a contract by the end of 2026 keeps grandfathered status and can choose from 2027 onward whether the old or new system should apply.

What exactly is changing?

The reform brings three major changes to Wohn-Riester (the "home-ownership pension"):

Higher subsidies: For contributions up to €360, there will be a €180 subsidy (50 cents per euro contributed). For further contributions up to €1,440, up to €360 more is added (25 cents per euro between €360.01 and €1,800). In total, up to €540 in annual subsidies is possible – significantly more than before.
Lower thresholds for renovation funding: Previously, withdrawals for age-appropriate or energy-efficient renovations had to be at least €6,000 or €20,000 to qualify. Going forward, measures starting at €3,000 will be eligible.
Shorter taxation period: For the "housing subsidy account," the previous annual 2% increase is eliminated, and the taxation period is shortened from 20 to 5 years.
New eligible group: Starting in 2027, self-employed individuals, freelancers and business owners can use the subsidy for the first time.

What happens to existing contracts?

All contracts signed by December 31, 2026 keep grandfathered status. From January 1, 2027, holders of these "legacy contracts" can freely choose whether the old or the new subsidy system should apply to them – and this applies to all Riester contracts, not just Wohn-Riester.

In other words: signing a contract this year does not lock you out of the reform's benefits. Instead, it additionally gives you the option to choose between both systems once the details are finalized from 2027.

What you should pay attention to now

The choice between the old and new system depends on individual factors – such as the current balance of your housing subsidy account, planned renovations, or your personal tax situation. Blanket statements aren't credible here. It makes sense to get an early overview of your own contract and to actively evaluate the choice available from 2027, rather than missing it.

→ Go to the Wohn-Riester Quick Check: a rough indication in three questions

This article is for general information only and does not constitute individual tax, legal or investment advice. For a personal assessment, consult a tax advisor or independent financial advisor.

Sources: Finanztip – Riester reform, Pfefferminzia – What happens to Wohn-Riester after the reform, German Federal Ministry of Finance – FAQ on the reform