The New German Retirement Account (Altersvorsorgedepot)

Starting January 1, 2027, Germany is transforming its pension system. Invest directly in ETFs, receive direct government cash bonuses, and benefit from massive tax deductions. 🤑

Join the 2027 Priority List

Building Your Financial Future in Germany

Rürup Pension

Best for high earners and the self-employed seeking the maximum tax shield.

Almost 100% of your contributions are tax-deductible up to a certain limit.

Private Pension

Best for those who want full flexibility and tax-free withdrawals later in life.

No rigid retirement age; access your capital whenever you need it.

Altersvorsorgedepot

Best for employees and families looking for ETF returns + direct government bonuses.

Direct cash matches from the state and no "insurance wrapper" fees.

1. The Savings Phase

The new proportional system is incredibly simple and highly rewarding. The government literally pays you a guaranteed percentage match on your ETF investments:

  • Basic Match (Grundzulage): The state rewards your investments with direct cash bonuses up to a limit of €1,800 per year
    • 50% Match: On your first €360 invested per year, the state adds a massive 50% match (50 cents for every €1).
    • 25% Boost: For the remaining €1,440 (from €361 to €1,800), you receive a 25% match (25 cents for every €1).
    • Result: If you invest €1,800 a year (€150/month), you receive a guaranteed €540 in free state bonuses.
  • Family Match (Kinderzulage): The state provides a 100% match on your contributions for your children, up to €300 per child. If you invest €300 for your child, the state adds another €300.
  • Tax Deductions: You can deduct your contributions up to €1,800 per year as special expenses (Sonderausgaben) from your taxes. For a single person with a 42% tax rate this means 756€ back.
  • High Contribution Limits: The account allows total annual contributions of up to €6,840.
  • 0% Capital Gains Tax During Growth: You pay 0% capital gains tax (Abgeltungsteuer) and preliminary tax (Vorabpauschale).

2. The Payout Phase

When you reach retirement (typically between age 65 and 70), you gain full control over how you want to use your built-up capital and decide the options:

  • Two Flexible Options: You can choose between two payout options at the beginning of your retirement:
    • Lifelong Pension: A guaranteed monthly payment for the rest of your life.
    • Flexible Payout Plan: Receive payments until at least age 85. Any remaining capital in the depot is fully inheritable for your loved ones.
  • The 30% Lump Sum: At the start of your retirement, you can choose to take out up to 30% of your total capital as a one-time cash payment without losing any subsidies.
  • Subsidized Capital: Withdrawals based on your subsidized contributions (up to €1,800/year + bonuses) are subject to “deferred taxation.” You pay your personal income tax rate at the time of withdrawal—which is usually much lower than during your working years.
  • Private Surplus: Any contributions you made above the subsidized limit are taxed much more favorably (usually only the earnings part is taxed).
  • Social Security Bonus: Good news for statutory insured expats: Payouts from this private depot are generally free from health and long-term care insurance contributions (Kranken- und Pflegeversicherungsfrei). You keep more of your pension!

Secure Your 2027 Advantage

Providers are currently preparing the first accounts. By joining our “Early Bird” list, you get early access to the best low-cost ETF providers and a dedicated consultation to see how the Altersvorsorgedepot fits with your Rürup or Private pension.

Zero hidden fees, no obligation, and zero stress.

Altersvorsorgedepot

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Your PerFinEx financial advisory team

Axel Brückner
Axel Brückner
Pascal Pfister
Pascal Pfister
Jan Hensel
Jan Hensel
Your Altersvorsorgedepot advice

Personal finance in Germany can be difficult – especially as an expat with limited German language skills. We make your financial planning as easy as possible. All you need is a device that is connected to the internet to secure a free online meeting with us.

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FAQ About The Altersvorsorgedepot

Would you like to check if your query has already been answered? Our FAQ about the Altersvorsorgedepot in Germany includes all the essential questions that you may be interested in.

When exactly can I open an account?

The legal framework starts on January 1, 2027. We recommend preparing your strategy in 2026 so you can benefit from the full subsidies from day one.

Can I switch my old Riester contract into the new Depot?

Yes! The new law allows for a simplified transfer of existing Riester capital into the more lucrative Altersvorsorgedepot. We can help you check if a transfer makes financial sense for you.

Is my money safe if the stock market goes down?

Unlike older systems, the new Depot removes the expensive “capital guarantee” requirement. This is good news: It means 100% of your money works for you in the market, leading to much higher long-term returns. But, if you would still like to have a guarantee, this is possible too.

Can I access the money before age 65?

The system is designed for long-term retirement. While you can withdraw money earlier, doing so (except for specific cases like buying a home in Germany or “Kleinbetragsrente”) usually triggers a repayment of the state subsidies and tax breaks. However, the portions of your depot that were built with “unsubsidized” contributions (above the €1,800 limit) can be accessed more flexibly.

Is the money in my Depot inheritable?

Yes! If you choose a Payout Plan (until age 85 or longer), the remaining balance is fully inheritable. If you choose a Lifelong Pension, you can add a “Guarantee Period” (10 or 20 years) to ensure your family continues to receive payments if you pass away early.