Retirement at 25? Yes, really.

Sounds like crocheted blankets and a lifetime away. It is. And yet you of all people get the most out of the new Altersvorsorgedepot (Germany’s state-subsidized retirement investment account), because nothing is worth as much in investing as time. And right now you have plenty of it.

New from 2027

What the Altersvorsorgedepot is –without the jargon

Picture an ETF savings plan, with one crucial difference: the state adds something on top of every euro you pay in.
From 1 January 2027 you can open a securities account with a bank, a broker or a fund provider and invest there long term in ETFs, funds and bonds. Unlike your parents’ Riester pension, there is no longer any obligation to have a capital guarantee. That means your money can really work in the stock market instead of sitting around in tired guarantee products.
And if choosing funds feels like too much: there is a default standard product where everything runs automatically. Two predefined funds, set up and ready to go. The autopilot for investing

  • up to €540 basic allowance per year
  • eligible for the subsidy from €10 a month
  • €200 bonus under 25
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Your advantages

6 reasons why you in particular benefit

The state adds to it

On every euro up to €360 a year you get 50 cents on top, then 25 cents up to €1,800. That adds up to as much as €540 basic allowance per year.

€200 bonus – just for you

Sign up before your 25th birthday and take the one-off €200 career starter bonus with you. Older savers do not get it.

Compound interest needs a head start

The difference between "starting at 25" and "starting at 45" is brutal. Starting 20 years earlier often means you need only a fraction of the monthly contribution.

Start with €10 a month

€120 a year is enough to qualify for the subsidy, less than a streaming subscription. Starting small is fine, the main thing is that you start.

No financial expertise needed

The default standard product takes the investment decision off your hands and automatically shifts towards safety as you get older.

Stays flexible

Changed jobs, income fluctuating, money tight right now? Adjust, pause or increase your contribution at any time.
Model calculations

Numbers that make the case

Someone who starts at 18 and pays in €30 a month can reach more than €130,000 by the time they retire at 67. Your own share of that: around €18,000. The rest is subsidy and return working for you.

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€130,000

is what just €30/month can become by the start of retirement
You do not have to put away hundreds of euros a month straight away. All that matters is starting early, time does the rest.
The most expensive mistake

Do not sign up with the first bank you come across

Now the part that saves you the most money: do not just take the bank that happens to hold your checking account  or the provider from the Instagram ad. It comes down to costs. The government subsidy is the same everywhere, costs are not. And with a product that runs for 40 years, costs are no small matter. Consumer advocates have calculated that the difference between a cheap and an expensive provider can add up to a six-figure sum over 40 years, with an identical monthly contribution. The statutory cost cap of 1% a year applies only to the default standard product. With other securities accounts, for example when funds are wrapped in a pension insurance policy, it can get considerably more expensive without you noticing straight away. The good news: in future, providers will have to publish standardized, comparable product information. For the first time that makes it possible to lay costs and terms side by side fairly, the way you are used to with cell phone plans.
calculator

What does waiting cost?

When it comes to retirement provision, time is your biggest asset. Every year you wait costs real money in the end, because compound interest then has one year less to work. People who start early often get further with a small contribution than someone who starts later with a much bigger one.

The nasty part is that you notice none of it at the time. The loss only shows up right at the end, as a sum that simply is not there when you turn 67. Just move the slider and see what a few years of waiting cost.

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Was kostet es zu warten?

Wartejahre iAnzahl Jahre Verzögerung vor dem Sparbeginn. Modellrechnung: 150 €/Monat ab 30 bis 67, 6 % p.a. 0 Jahre
015 Jahre
Das kostet das Warten
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Endkapital mit 67: –
Jetzt statt später starten Individuelle Berechnung: Alter, Sparbetrag, Kinder, Einkommen Auf die Warteliste Erfahren Sie als Erste:r, welche Anbieter starten

Unverbindliche Modellrechnung, keine Anlageberatung, keine Garantie künftiger Wertentwicklung. Vergangene Wertentwicklungen sind kein verlässlicher Indikator für künftige Wertentwicklungen.

How to go about it

Your plan in four steps

  • Do not put it off.
    The earlier you start, the more time your money has to grow. That is the biggest advantage you have.
  • Starting small is fine.
    €10 to €30 a month is enough to benefit from the subsidy.
  • Sign up before you turn 25,
    if you are close to it – that way you lock in the €200.
  • Compare before you sign.
    Put costs and terms side by side instead of taking the first contract you find.
View all providers & assessment criteria
FAQ

Frequently asked questions

Especially then. Your biggest advantage is time: the longer your money works, the more powerful compound interest becomes. Starting 20 years earlier often means you need only a fraction of the monthly contribution for the same result.

For eligibility, yes, €120 a year is enough. The full basic allowance of €540 only comes with an own contribution of €1,800 a year, but starting small is better than not starting at all.

The career starter bonus is a one-off payment if you open your Altersvorsorgedepot before your 25th birthday. It comes on top of the normal allowance.

Yes. The default standard product takes the investment decision off your hands: two predefined funds and an automatic shift towards safety as you get older. You do not have to pick anything.

You can lower or pause your contribution at any time. As long as the minimum contribution is reached by the end of the year, you stay eligible for the subsidy.

For the €200 bonus, yes, it only applies up to your 25th birthday. The earliest you can sign up, though, is 1 January 2027. Join the waiting list so you can get started in good time.