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German Retirement Investment Account Calculator

Compare Germany's subsidised retirement investment account available from 2027 with a regular ETF portfolio using the same personal outlay, including allowances, taxes, costs and payout.

Available

Inputs

Enter values

Live

Person and subsidy

Eligibility, contribution and child entitlements

iA statutory limit for the 2027 model; special cases must be checked individually.

A statutory limit for the 2027 model; special cases must be checked individually.

iA statutory limit for the 2027 model; special cases must be checked individually.

A statutory limit for the 2027 model; special cases must be checked individually.

iEnter the annual subsidised contribution; own contract contributions are capped at EUR 6,840.

Enter the annual subsidised contribution; own contract contributions are capped at EUR 6,840.

Load example

For illustration only – your own calculation is what counts.

Explanation

How German Retirement Investment Account Calculator works

The calculator separates statutory subsidies from adjustable future assumptions. It determines contributions, allowances, a possible one-off career-starter bonus and the approximated additional tax effect for each year.

Basic allowance from 2027G = 0,50 × min(B, 360) + 0,25 × min(max(B − 360, 0), 1.440)

B is the eligible own contribution. The allowance reaches its EUR 540 maximum at EUR 1,800; the EUR 120 minimum contribution remains a condition.

Both main paths use the same personal outlay. AVD allowances are additional subsidy capital; a tax refund is handled according to the selected use and is never silently treated as free money in only one path.

Knowledge

Understand the subsidy from 2027

How the basic and child allowances, career-starter bonus and favourable tax test interact.

The basic allowance rises in stages with the own contribution. Child allowances depend on formally granted child benefit; the one-off career-starter bonus requires the person to be under 25 at the start of the year.

  • Minimum own contribution for allowances: EUR 120
  • Maximum basic allowance: EUR 540
  • Child allowance: up to EUR 300 per child and year
  • Own contract contributions: up to EUR 6,840 a year

Knowledge

Compare AVD and ETF fairly

Same term and personal cash outflow, but different subsidies, costs and tax treatment.

The ETF path receives the same personal outlay as the AVD path. The AVD grows within its subsidised wrapper but is generally fully taxed on payout. The equity-fund path models partial exemption, saver allowance, advance lump sum and a deemed sale at retirement.

An advantage applies only to the selected assumptions. Changes in cost or tax can reverse the ranking.

Knowledge

Payout and taxation

Lump sum, monthly payout plan, continuing return and downstream tax.

Retirement normally starts no earlier than 65 and the first benefit no later than 70. Up to 30% can be paid once at the start. This plan pays the balance monthly and ends no earlier than age 85.

The retirement tax rate is a user input. The calculator does not claim to know a future personal rate and does not calculate an insurer's lifelong annuity.

Practice

Practical examples

For illustration only – your own calculation is what counts.

Employee without children

Age 35, EUR 1,800 own annual contribution and retirement at 67, with the same gross return in both portfolios.

Result: The basic allowance is EUR 540 in each eligible year. Which portfolio leads after tax depends mainly on costs, the tax refund and the retirement tax rate.

Two children with different entitlement periods

Age 32; child benefit is expected for another eight years for one child and twelve years for the other.

Result: While both entitlements remain, the model adds EUR 600 child allowance a year, then EUR 300 until the second entitlement ends.

Career start before age 25

Age 24 at the start of the year, directly eligible, and the bonus has not previously been received.

Result: A one-off EUR 200 career-starter bonus is added to the contribution-dependent basic allowance in the first year.

Cost-sensitive ETF comparison

The AVD costs 1.5% a year and the ETF portfolio 0.2%; both earn the same return before costs.

Result: The calculator can show an ETF advantage despite the subsidy. It deliberately gives no blanket product recommendation.

Transfer existing Riester capital

EUR 50,000 of subsidised Riester capital is transferred with an actual transfer fee of EUR 150.

Result: The AVD starts with EUR 49,850 after the fee. The ETF counterfactual shows the full EUR 50,000 so that the transfer friction remains visible.

Notes

Common mistakes

  • Counting the tax refund twice

    The refund is shown as extra return without adjusting personal outlay.

    Select one use; the main ETF path remains normalised to the same out-of-pocket amount.

  • Reading the return as guaranteed

    A constant model return is mistaken for promised performance.

    Run several return and cost scenarios and treat every value as an assumption.

  • Assuming child allowance automatically to age 18

    The actual child-benefit period can be longer or shorter.

    Enter only the expected remaining years of formally granted child benefit for each child.

  • Comparing gross wealth

    The AVD and ETF are taxed differently during saving and payout.

    Use the separately stated net wealth at the common retirement date for the ranking.

  • Applying the 1% cap to every AVD

    The official cost cap applies to the standard portfolio, not automatically to every product.

    Enter actual product costs from the provider documents as an assumption.

FAQ

Frequently asked questions

What is the statutory retirement investment account?

It is a certified retirement contract that providers may offer from 2027 without a mandatory capital guarantee. Contributions may be invested in eligible funds and bonds and can receive allowances plus a possible additional special-expense deduction.

Has the reform already become law?

Yes. The Retirement Provision Reform Act was promulgated on 29 May 2026. The new product and subsidy rules modelled here apply from 1 January 2027.

How high is the basic allowance from 2027?

It is 50% of the first EUR 360 contributed plus 25% of the contribution between EUR 360.01 and EUR 1,800, up to EUR 540 a year. No allowance applies below the EUR 120 minimum own contribution.

How does the calculator account for children?

For each child and year with formally granted child benefit, the allowance equals 100% of the relevant contribution, capped at EUR 300. The remaining entitlement period is entered separately for each child.

Is the favourable tax test an exact tax calculation?

No. The tax office performs the statutory test. This calculator shows a transparent marginal-rate approximation and does not fully simulate taxable income, progression, other deductions or church tax.

Why does the ETF comparison use the same personal outlay?

This makes the comparison fair: the regular ETF receives exactly what the person pays out of pocket in the AVD scenario. The additional refund is consumed, invested separately or paid into the AVD as selected.

How is the ETF advance lump sum handled?

The statutory annual mechanism is modelled as a long-term approximation. The future base rate is an adjustable assumption, while partial exemption, the available saver allowance and earlier advance lump sums are considered.

How can the retirement account be paid out?

Up to 30% may be withdrawn once at the start. The modelled statutory plan pays monthly and does not end before age 85. Subsidised benefits are generally taxed downstream at the entered personal retirement tax rate.

Does the calculator tell me which investment is better?

No. It only shows which path leads under the selected return, cost, tax and inflation assumptions. It is not investment, tax or insurance advice and cannot replace an individual review.

Limits

Limitations

  • The favourable tax test is a marginal-rate approximation, not a full income-tax assessment.
  • Constant returns omit market volatility, sequence risk and losses.
  • ETF taxation is approximated; individual lots, distributions and bank-specific loss offsetting are not modelled.
  • The calculator models the statutory payout plan, not an insurer's individual lifelong annuity factor.
  • Early-start pension, home-ownership support, guarantee products and survivor or disability cover are outside scope.

Sources

Sources and references

  • AltersvorsorgereformgesetzBundesministerium der Justiz und für Verbraucherschutz / Bundesgesetzblatt

    Promulgated Act, Federal Law Gazette 2026 I No. 156; primary source for product, subsidy, transfer and payout rules.

    View sourceAs of: 05/29/2026 · Validity: 01/01/2027 · Retrieved: 09/03/2026 · Verified on: 09/03/2026 · Primary source
  • Private Altersvorsorge wird attraktiverDie Bundesregierung

    Official overview of the reform and the 1 January 2027 product launch.

    View sourceAs of: 09/03/2026 · Retrieved: 09/03/2026 · Verified on: 09/03/2026 · Primary source
  • § 10a EStG – Zusätzliche AltersvorsorgeBundesministerium der Justiz und für Verbraucherschutz

    Official provision governing the favourable tax test; the amending Act controls the 2027 amounts.

    View sourceRetrieved: 09/03/2026 · Verified on: 09/03/2026 · Primary source
  • § 22 Nummer 5 EStG – Leistungen aus AltersvorsorgeverträgenBundesministerium der Justiz und für Verbraucherschutz

    Official provision governing downstream taxation of subsidised retirement benefits.

    View sourceRetrieved: 09/03/2026 · Verified on: 09/03/2026 · Primary source
  • § 18 InvStG – VorabpauschaleBundesministerium der Justiz und für Verbraucherschutz

    Official provision governing the annual advance lump sum in a regular investment-fund account.

    View sourceRetrieved: 09/03/2026 · Verified on: 09/03/2026 · Primary source
  • § 20 InvStG – TeilfreistellungBundesministerium der Justiz und für Verbraucherschutz

    Official provision on partial exemptions; 30% for equity funds is the adjustable starting value.

    View sourceRetrieved: 09/03/2026 · Verified on: 09/03/2026 · Primary source
  • §§ 20 und 32d EStG – Sparer-Pauschbetrag und besonderer SteuersatzBundesministerium der Justiz und für Verbraucherschutz

    Official basis for the saver allowance and special investment-income tax rate in the ETF comparison.

    View sourceRetrieved: 09/03/2026 · Verified on: 09/03/2026 · Primary source