Strategies for the Altersvorsorgedepot (Germany's state-subsidized retirement investment account)

How to combine subsidies, flexibility and capital market opportunities sensibly.

Strategy

Using the securities account the right way

Opening an Altersvorsorgedepot is the first step. How much comes out of it in the end, though, depends on how you use it. Anyone who takes the subsidy in full, stays invested for the long term and combines the account with a flexible ETF account gets noticeably more out of it than with a single product. What matters is not finding the perfect product, but coordinating the individual building blocks – subsidy, tax advantages and free investment – sensibly.

On this page we show what matters: from the principles to the hybrid strategy and a concrete calculation example.

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What matters

The most important principles

Use up the subsidy first

Take the full government subsidy. It increases your return from the very first contribution.

Stay flexible

Do not tie up all your money in the account. An ETF account creates room for other goals.

Invest for the long term

Time beats timing. Those who start early and stick with it benefit the most.

Use the account as your core

The Altersvorsorgedepot is a good basic building block. You add your own focus areas through an additional ETF account.

Keep the overall picture in view

What matters is not the individual account, but how all the building blocks work together.

Keep an eye on costs

Low fees work like additional return. Pay attention to the reduction in yield (RIY), especially over long terms.
Our recommendation:

The hybrid strategy

The most sensible approach is a combination of both: the subsidized Altersvorsorgedepot as the long-term building block and a classic ETF account for flexibility. First use up the subsidy in the Altersvorsorgedepot and put everything beyond that into a freely available securities account.

Step 1 – use up the subsidy

Even with moderate monthly contributions you secure substantial allowances.

 
Subsidy component Amount
Basic allowance per eligible person €540 / year
Child allowance per child €300 / year
Maximum subsidized contribution €1,800 / year
Additional contributions (unsubsidized) up to €5,040 / year
Maximum total contribution €6,840 / year

How much this adds up to depends on your household situation.

Step 2 – keep building without restrictions

Once the subsidy is used up, the rest flows into an ETF account that remains available at any time. With ETFs you can invest, for example, in:

  • Equities
  • Bonds
  • Real estate
  • Commodities
  • Precious metals
  • Special themes
  • Cryptocurrencies

Core and satellites

Professionals call this principle the core-satellite model. The core – broadly diversified, low-cost global ETFs – forms the stable foundation; the subsidized Altersvorsorgedepot is well suited to this. Smaller satellites in the non-subsidized account leave room for your own focus areas without greatly increasing overall risk.

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75% Core 15% 5% 5%
  • 75% Altersvorsorgedepot (global ETF)
  • 15% Bond ETF
  • 5% Real estate ETF
  • 5% Precious metals ETF
Practical example: family with €300 a month

From contribution to assets

 This is how a monthly savings budget can develop over 37 years:

Family, married, 2 children

Age 30 · €300 / month (€200 securities account · €100 ETF) · 37-year investment horizon
Savings budget €300/month → after 37 years≈ €710,000
Altersvorsorgedepot≈ €520,000
ETF≈ €190,000

Split: €200 Altersvorsorgedepot + €100 ETF per month. Assumptions: 37 years, 6% and 7% return respectively, government subsidy included in the account. Example values, no guarantee.

Assumptions: 37-year term, 6% return in the Altersvorsorgedepot, 7% in the ETF account, all returns reinvested. While the Altersvorsorgedepot handles the long-term, subsidized build-up, the ETF account creates freely available assets of around €190,000 that can be used for other goals at any time.

Example values based on the assumptions stated, no guarantee.

Flexibility

Why not put everything into the Altersvorsorgedepot?

Preserve flexibility

The Altersvorsorgedepot is tied up until the decumulation phase. A non-subsidized securities account stays accessible at any time, for example for a property, a career break or something unforeseen.

More investment freedom

The subsidized account is limited to approved products. Individual stocks, crypto or specialist themes run through a separate account.

Use the subsidy deliberately

Above a certain contribution the subsidy no longer increases. Paying in more only pays off depending on your situation and your liquidity needs.
Advanced

For active investors and heavy savers

Rebalancing across two securities accounts

You make adjustments to weightings and add new focus areas mainly in the non-subsidized ETF account. This keeps your retirement provision on track while the active part stays flexible – management becomes simpler and clearer.

Separating wealth building from trading

Many active investors separate long-term building from short-term strategies. The Altersvorsorgedepot serves as a calm anchor for your assets, staying invested regardless of daily form and market sentiment. Its limited availability protects against spontaneous intervention during turbulent phases.

Additional payments

When non-subsidized additional payments are worthwhile

Beyond the subsidized contributions, you can keep paying in. There is no longer an allowance for this, but it can still be worthwhile in these cases:

  • You want to invest long term anyway, 25 years or more – that is when compound interest has the strongest effect.
  • In a normal securities account you would have to pay tax on high investment income on an ongoing basis – in the Altersvorsorgedepot it stays invested tax-free for the time being.
  • You expect lower income in retirement – then the later taxation is often lower.
  • A fixed savings framework helps you stick with it – the tied-up account provides discipline.

When you should take a closer look

Because the capital is tied up long term, enough freely available assets should remain for other goals. You should look particularly closely if larger expenses are coming up, if flexibility is a priority for you, if you want to use other investment strategies, or if a similarly high tax rate is to be expected in retirement.

Subsidy calculator

What adds up in the end?

How much your contributions can turn into depends above all on your contribution amount and the term. Set both and see a possible account value immediately. Even small amounts add up over the years, because the subsidy and compound interest work alongside you.

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Ihr Depot-Wert

Monatliche Sparrate iIhr eigener Beitrag pro Monat. Bis 150 €/Mo bekommen Sie zusätzlich die volle Grundzulage von 540 €/Jahr ins Depot. 150 €
25 €500 €
Laufzeit iÜber wie viele Jahre Sie sparen. Üblich: Zeit bis zum Rentenbeginn mit 67. 30 Jahre
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Modellrechnung: 5,5 % p.a. Rendite, 0,5 % Kosten, Grundzulage inklusive.
Erweiterte Berechnung Mit Einkommen, Rendite, Kosten, Inflation, Riester-Übertrag, ETF-Vergleich 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.

FAQ

Frequently asked questions

Often yes. The subsidized account is tied up until retirement and limited to approved products. A non-subsidized securities account with ETFs stays available at any time and allows more investment freedom. Many people first use up the subsidy and then invest the rest without restrictions.

Both have their strengths. In the Altersvorsorgedepot you receive allowances and tax advantages, but your money is tied up until retirement. A non-subsidized securities account brings no subsidy, but you can access your money at any time. For most people, neither one on its own is the best solution, but the combination is: take the subsidy in the AVD and keep a non-subsidized account alongside it for everything that should stay flexible.

That depends on your situation. For the self-employed in particular, it is worth making a direct comparison of the Altersvorsorgedepot and the Rürup pension. The securities account is more flexible and can be inherited, while the Rürup pension sets different tax priorities.

Yes, and for many people that is exactly the most sensible route. You pay as much into the Altersvorsorgedepot as you need for the full basic allowance and invest the rest in a non-subsidized securities account. That way you secure the government subsidy while staying flexible with the rest of your money. You can run both accounts in parallel.