Retirement Depot Calculator

The Altersvorsorgedepot (AVD) is a new government-subsidized investment product launching in Germany on January 1, 2027. It allows you to invest in equity ETFs while receiving government subsidies: 30% basic subsidy (Grundzulage) on the first €1,200 of annual contributions, 20% on the next €600, plus a 25% child subsidy (Kinderzulage, max €300/child/year). There is also a career starter bonus (Berufseinsteiger-Bonus) of €200 for those under 25 during their first three years. Withdrawals in retirement are taxed at your personal income tax rate. Sometimes called the "Klingbeil Depot" after SPD chairman Lars Klingbeil, one of the key political drivers of the reform.

It depends on your personal situation. The AVD is especially worthwhile for families with children (due to the Kinderzulage), high earners with a high tax rate (Günstigerprüfung), and career starters under 25 (€200 bonus). A classic ETF portfolio may be more advantageous when AVD costs are significantly higher than ETF costs, there is no entitlement to high subsidies, or the retirement tax rate eats into the interest advantage. Our calculator shows you the concrete difference for your situation.

The basic subsidy (Grundzulage) is 30% on the first €1,200 of annual contributions (max €360) and 20% on the next €600 (max €120). The maximum Grundzulage is therefore €480 per year. If you contribute less than €1,800 annually, you receive proportionally less. In addition, there is the child subsidy (Kinderzulage) of 25% of contributions (max €300/child/year) and the career starter bonus.

With the Altersvorsorgedepot, the tax office (Finanzamt) automatically checks whether a tax saving through the special expense deduction (Sonderausgabenabzug, up to €6,840 annually) is more favorable than the direct subsidy. If the tax saving exceeds the subsidy, the difference is paid out additionally. This tax bonus is particularly relevant for high earners with tax rates from 32%. Example: At €200/month and a 42% tax rate, the tax saving is approx. €1,008/year, the Grundzulage approx. €360 — the bonus would be approx. €648.

Withdrawals from the Altersvorsorgedepot are taxed in retirement at your personal income tax rate at that time. Since income in retirement is typically lower than during working years, this rate is often more favorable. Our calculator uses 20% as the default retirement tax rate, which you can freely adjust. A classic ETF portfolio is instead subject to the flat-rate capital gains tax (Abgeltungsteuer) of 26.375% (incl. solidarity surcharge), but with partial exemption (Teilfreistellung) and an annual saver's allowance (Sparerpauschbetrag).

For equity ETFs, 30% of gains are tax-exempt (Teilfreistellung). This means that effectively only 70% of annual gains are subject to the flat-rate capital gains tax (Abgeltungsteuer) of 26.375%. Additionally, there is the saver's allowance (Sparerpauschbetrag) of €1,000 per person per year, which is tax-free. Our calculator computes ETF tax using this formula: taxable gain = max(0, annual gain × 0.70 − €1,000). The 26.375% tax is then applied to this amount.

Yes, the Altersvorsorgedepot and a classic ETF portfolio are not mutually exclusive. Many financial experts recommend a combination: the AVD for the subsidized portion (up to €1,800 annually for the full Grundzulage) and a low-cost ETF portfolio for additional contributions. This way you benefit from the government subsidies while maintaining the flexibility and low costs of an ETF portfolio.

The Altersvorsorgedepot is planned to launch on January 1, 2027. It is part of the reform of subsidized retirement savings in Germany, which aims to modernize the existing Riester products and integrate ETF investments into the government subsidy framework. The exact terms and providers are still being finalized. This calculator is based on the currently known subsidy conditions.

If you dissolve the Altersvorsorgedepot before retirement, you must repay all received subsidies (Grundzulage, Kinderzulage, career starter bonus). The minimum age for a subsidy-safe withdrawal is 62. An important exception applies for home ownership: withdrawals for the purchase, construction, or age-appropriate renovation of a self-occupied property are exempt from subsidy repayment. A classic ETF portfolio, by contrast, can be liquidated at any time without penalty (only regular capital gains tax on profits).

The Altersvorsorgedepot offers three payout options: (1) Withdrawal plan (Auszahlplan): The accumulated capital is paid out as a monthly installment – scheduled until age 85. (2) Life annuity (Leibrente): The capital is converted into a lifelong monthly pension (annuity factors depend on the provider). (3) 30% lump sum + withdrawal plan: Up to 30% of the capital can be withdrawn as a lump sum at the start of retirement, with the rest going into the withdrawal plan. The payout period begins at the earliest at age 65.

Subsidies are only granted on annual contributions up to €1,800 (€150/month). The tax-deductible special expense amount (Günstigerprüfung) applies up to €6,840 annually (€570/month) – which is also the contribution limit per contract. If you want to save more, you can open two AVD contracts and contribute up to €13,680 annually (€1,140/month). Important: Grundzulage and Kinderzulage are per-person limits and do not double with two contracts. The tax bonus, however, can be larger with two contracts. For most savers contributing less than €570/month, a single contract is sufficient.

Three main differences: (1) Subsidies – The Retirement Depot receives Grundzulage, Kinderzulage, and potentially a tax saving via Günstigerprüfung. A standalone ETF savings plan receives no subsidies. (2) Taxation – ETF savings plan: 30% partial exemption (Teilfreistellung) + saver's allowance (Sparerpauschbetrag) during the accumulation phase. Retirement Depot: tax-free during accumulation, but withdrawals are taxed at the retirement income tax rate. (3) Flexibility – An ETF savings plan can be cancelled at any time. With the Retirement Depot, all subsidies must be repaid upon early withdrawal. Our calculator automatically shows which option performs better in your scenario.

The Altersvorsorgedepot is especially worthwhile for: (1) Families with children (Kinderzulage up to €300/child/year), (2) Career starters under 25 (bonus of €200/year for 3 subsidy years), (3) People with medium to high tax rates (≥ 32%), where the Günstigerprüfung applies and the tax saving exceeds the subsidy. The AVD is less attractive with a very low tax rate (< 25%) and no children – in that case, a low-cost ETF savings plan often wins. Our free calculator shows your personal result in seconds.

The Altersvorsorgedepot is generally available only to employees and certain other groups who would also be eligible for Riester products (§ 79 EStG). Traditionally self-employed individuals without mandatory statutory pension insurance do not have a right to AVD government subsidies. Exceptions apply for self-employed people with voluntary mandatory insurance in the statutory pension system (GRV). The exact eligibility requirements will be finalized before the 2027 launch.

The Altersvorsorgedepot is expected to be exempt from asset assessments for basic social security (Bürgergeld), similar to Riester contracts. The legislator has consistently provided seizure protection and exemption from social benefit calculations for comparable subsidized retirement savings products. The exact regulations have not yet been passed – details will be defined by the AVD implementation laws (expected 2026).

As of 2026, no providers have announced specific AVD products, as the law does not take effect until January 1, 2027. Expected providers include direct banks (e.g., ING, DKB, Consorsbank), online brokers (Trade Republic, Scalable Capital), as well as traditional banks and insurance companies. Key comparison factors: TER costs of available ETFs, potential depot fees, and ETF selection. Our calculator helps you evaluate the impact of different cost structures on your final capital.

During unemployment or parental leave, pausing contributions creates no obligations and no penalties – you can simply pause the AVD. Government subsidies are only granted for contributions actually made. A subsidy-damaging withdrawal only occurs when dissolving the depot before age 62, not when simply pausing contributions. Whether paused years can be back-funded will be regulated by the implementation laws.

The Altersvorsorgedepot and company pension plans (betriebliche Altersvorsorge, bAV) are two different pillars and are not mutually exclusive. The AVD is private subsidized retirement savings (3rd pillar), while the bAV runs through the employer (2nd pillar). You can use both in parallel. The bAV additionally offers a statutory employer contribution of at least 15% and social insurance exemption for salary conversion (Entgeltumwandlung). The optimal combination depends on your employer's specific terms.

The Altersvorsorgedepot is completely independent of the statutory pension insurance (gesetzliche Rentenversicherung, GRV). AVD contributions have no effect on the amount of your statutory pension, and later AVD payouts are not offset against your GRV pension. However, both income sources in retirement are added together for calculating your personal income tax rate. The higher your total retirement income, the higher the tax rate on AVD withdrawals – this should be considered when setting the retirement tax rate in the calculator above.

The Altersvorsorgedepot (AVD) is the successor to the Riester pension (Riester-Rente) and brings three key improvements: (1) Instead of expensive insurance products with a contribution guarantee, you can invest in low-cost ETFs – the contribution guarantee is dropped. (2) Subsidies are higher: Grundzulage up to €480 instead of €175 with Riester. (3) A flexible withdrawal plan replaces the mandatory annuitization. Existing Riester contracts can presumably be transferred to an AVD. Whether the switch is worthwhile depends on the existing costs and terms of your Riester contract.

That depends on your monthly contribution, the investment period, and the return. Example: If you start at age 30, contribute €150 monthly, and achieve a 7% return, you accumulate roughly €250,000 in gross capital by age 67 – of which approx. €17,000 are government subsidies. After retirement tax (20%), approx. €200,000 remain net. As a monthly payout over 20 years, that is about €830. Use our calculator above to compute your personal result.

The costs of the Altersvorsorgedepot consist of two parts: (1) AVD depot fees charged by the provider – these are not yet finalized but are expected to be 0.0–0.3% per year. (2) ETF costs (TER) – typically 0.1–0.5% per year, depending on the chosen fund. For comparison: Riester products often cost 1.0–2.5% per year. Our calculator lets you freely adjust the AVD costs (default: 0.4%), so you can model different provider scenarios.

The general rule is: the earlier, the better – thanks to compound interest. The AVD is especially attractive for those under 25 (career starter bonus of €200/year for 3 years). From age 50, the investment horizon is shorter, but the subsidies remain the same – it can still be worthwhile, especially with a high tax rate (Günstigerprüfung). From 55+, it gets tight: only 12 years until the minimum payout age (67). Our calculator shows you for any age whether the AVD outperforms a standalone ETF portfolio.

Yes, the draft legislation provides for a transfer option: Existing Riester contracts should be transferable to an Altersvorsorgedepot without having to repay the previous subsidies. The exact modalities (costs, timeframe, provider switching) are still being finalized. Whether a switch makes sense depends on the ongoing costs of your Riester contract, the remaining term, and the guaranteed benefits. Tip: Use our calculator to compare what a fresh start in the AVD would yield with your current data.

With the Altersvorsorgedepot, a non-working spouse can also receive subsidies through spousal co-subsidization (Ehepartner-Mitförderung, analogous to Riester eligibility via § 79 sentence 2 EStG). Requirement: The working partner has their own AVD contract and pays the minimum own contribution. The indirectly eligible partner then also receives Grundzulage and Kinderzulage on their own AVD contract. For married couples and families, this means: Double subsidies with only one earned income. GoodShare as a couples' budget app helps you keep track of both savings rates together.

Yes, eligibility is based on employment status in Germany (mandatory pension insurance contributions), not citizenship. EU citizens, permanent residents, and anyone employed under German social security can qualify. The key requirement is that you are subject to mandatory contributions to the German statutory pension insurance (gesetzliche Rentenversicherung). If you are employed in Germany with a standard employment contract, you are generally eligible regardless of nationality.

The AVD is independent of foreign pension systems. Contributions don't reduce your home country pension. However, tax treaties may affect how AVD withdrawals are taxed if you retire abroad. Consult a cross-border tax advisor for your specific situation. Note that if you leave Germany before retirement and dissolve the depot early, you would need to repay all received subsidies. Some bilateral social security agreements may also affect your overall retirement planning.