Altersvorsorgedepot: A Simple Guide

Investing for retirement while benefiting from government contributions will soon be possible directly through Bitpanda. We’re planning to offer our own Altersvorsorgedepot in Germany, allowing you to keep track of your retirement savings alongside your other investments, all in one app.

An Altersvorsorgedepot is a government-subsidised investment account designed to help people save for retirement in Germany. You contribute money, invest it in eligible products such as ETFs and, if you meet the requirements, receive additional contributions from the government.

One important change is that, unlike many existing retirement savings products, an Altersvorsorgedepot does not require a capital guarantee. This allows your money to benefit more directly from the long-term performance of financial markets.

That creates opportunities for higher returns, but it also comes with risks. The value of your investments can fluctuate, and you may lose money. Returns are not guaranteed.

Government support is available to certain groups, including employees and apprentices who pay into Germany’s statutory pension insurance system, as well as civil servants. From 2027, self-employed individuals and freelancers will generally also be eligible, provided they meet the legal requirements.

Whether you qualify depends on your personal circumstances. You can find a full overview in the German Federal Ministry of Finance’s FAQs.

The amount you receive then depends on how much you contribute yourself.

For the first €360 you contribute each year, the government adds €0.50 for every euro invested. For the next €1,440, it adds €0.25 per euro.

For example, if you invest €150 a month, you’ll contribute €1,800 over the year. If you’re eligible, you can receive the maximum annual basic government contribution of €540.

Smaller amounts qualify for support too. By investing just €10 a month, you can receive €60 in basic government contributions per year, provided you’re eligible. The minimum personal contribution is €120 per year.

Additional support may also be available:

• For families: Up to €300 per child per year in additional government contributions, provided the relevant requirements are met. To receive the full amount, you must contribute at least €300 of your own money each year.

• For young savers: A one-off €200 bonus for people starting their careers who open an account before their 25th birthday, subject to the legal requirements.

Depending on your personal circumstances, you may also benefit from tax advantages.

If you already have an ETF savings plan, you’ll be familiar with the idea: investing regularly to build wealth over many years.

An Altersvorsorgedepot follows a similar approach, with the added benefit of government contributions. In return, specific rules apply, particularly when it comes to accessing your money.

With a regular ETF savings plan, you can generally sell your investments and access your money whenever you like. With an Altersvorsorgedepot, however, your savings are usually tied up until retirement.

The payout phase generally begins between the ages of 65 and 70. At the start, you can withdraw up to 30% of your savings as a lump sum. For the remaining amount, there are generally two options: a lifetime annuity or a withdrawal plan that runs until at least age 85.

There are also tax differences. During the savings phase, investment returns within an Altersvorsorgedepot are generally not taxed. Instead, taxes are usually due when you receive payments in retirement.

An Altersvorsorgedepot and a regular ETF savings plan can therefore serve different purposes in your financial planning. While a regular savings plan offers more flexibility, an Altersvorsorgedepot is specifically designed to help you save for retirement over the long term.

Government contributions can make an Altersvorsorgedepot more attractive, but they shouldn’t be the only factor in deciding which option is right for you.

Costs are especially important when you’re investing over several decades. Even small differences in ongoing fees can affect the value of your retirement savings over time.

It’s also worth looking at how your money will be invested. Which ETFs can you choose from? How diversified are the investments? And would you prefer to build your own portfolio or go with a ready-made option?

Your investment horizon matters too. If you might need the money within the next few years, a retirement product that ties up your savings for the long term may not be the right fit.

The Altersvorsorgedepot gives people in Germany another way to save for retirement. Whether it’s right for you, and which option you choose, depends on your financial goals, your willingness to take risks and how much flexibility you want when it comes to accessing your money.

You can find more information about our planned Altersvorsorgedepot here.