Altersvorsorgedepot worked example: how €300 a month turns into a million
One million euros sounds like a lottery win, not like a perfectly ordinary savings plan. And yet a simple worked example on the Altersvorsorgedepot: if you start early and consistently claim the government Subsidy year after year, you can indeed build up a seven-figure sum over a full working life. That is exactly what we work through for you here, step by step and with all assumptions openly disclosed. You will see how your own contribution, government allowances and compound interest add up to this result, what share each individual building block contributes and where the limits of this model lie.
The key points at a glance
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With an own contribution of €300 a month over 44 years, an Altersvorsorgedepot can grow to more than €1 million at a net return of 6.5 percent.
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The largest component of the final balance is not your own contributions, nor is it the subsidy, but the return itself: in this example it accounts for more than 80 percent of the total capital.
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The government subsidy helps to push the balance past the million mark. The decisive lever, however, remains starting as early as possible.
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In this model the securities account needs around 33 years for the first €500,000. The second half million then takes only about 11 more years.
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The example shows a gross figure before tax and without adjustment for inflation. It is a model calculation, not a forecast and not a guarantee.
A worked example for the Altersvorsorgedepot shows how monthly own contributions, government subsidy and returns add up to a total over the decades. In the model used here, an own contribution of €300 a month over 44 years at a net return of 6.5 percent leads to capital of around €1,036,763 before tax.
The starting point: which assumptions are built into this example?
Every worked example stands or falls with its assumptions. So that you can judge the figures for yourself, we disclose them in full before we calculate.
|
Assumption |
Value |
Explanation |
|---|---|---|
|
Starting age |
23 years |
Direct entry into working life after vocational training or university |
|
Retirement |
67 years |
Standard statutory age limit |
|
Accumulation period |
44 years |
The decisive lever: a very long term |
|
Monthly own contribution |
€300 |
Constant over the entire term, calculated without pay increases |
|
Annual basic allowance |
€540 |
Maximum subsidy, since €300/month more than covers the full eligible amount of €1,800/year |
|
One-off career starter bonus |
€200 |
Because the contract is taken out before the 25th birthday |
|
Assumed return (nominal, before costs) |
7.0% p.a. |
Long-term historical average of a broadly diversified global equity index |
|
Assumed ongoing costs |
0.5% p.a. |
Realistic assumption for a low-cost Altersvorsorgedepot |
|
Assumed net return |
6.5% p.a. |
Return after costs, before tax in the decumulation phase |
Important for context: An own contribution of €300 a month amounts to €3,600 a year and is therefore above the maximum eligible amount of €1,800 per year. The first €150 a month trigger the full subsidy. The additional €150 a month flow into the same securities account without any further allowance, but still growing tax-free – up to the statutory overall limit of €6,840 per year.
These values are assumptions for a model calculation, not a forecast and not a guarantee. Actual market developments, costs and personal circumstances may differ significantly.
How the capital grows over the decades
Compounding does not work evenly; it accelerates over time. This becomes clear when you look at the account value every five years:
|
Years in the securities account |
Age |
Account value (approx.) |
|---|---|---|
|
5 |
28 |
€24,666 |
|
10 |
33 |
€58,457 |
|
15 |
38 |
€105,129 |
|
20 |
43 |
€169,594 |
|
25 |
48 |
€258,633 |
|
30 |
53 |
€381,616 |
|
35 |
58 |
€551,487 |
|
40 |
63 |
€786,121 |
|
44 |
67 |
€1,036,763 |
Striking: in this example the securities account needs around 33 years for the first €500,000. The second half million then takes only about 11 more years. The larger the capital, the more the return itself contributes to further growth – no longer just your own payments.
In short: Compounding needs time to take effect. In the first decades the securities account grows noticeably more slowly than at the end of the term. If you start early, you give the capital exactly that time.
What makes up the million at the end?
A look at the building blocks of the final balance of around €1,036,763 shows what share your own payments, the government subsidy and the return each contribute:
|
Building block |
Amount |
Share |
|---|---|---|
|
Your own capital invested (€300 × 12 months × 44 years) |
€158,400 |
15.3% |
|
Government subsidy (basic allowances + career starter bonus) |
€23,960 |
2.3% |
|
Increase in value through compound interest and returns |
€854,403 |
82.4% |
|
Total capital at the start of retirement (before tax) |
€1,036,763 |
100% |
By far the largest building block is neither your own payments nor the subsidy. It is the return, working on itself over 44 years. That is precisely the core of compounding: in the end, time beats even your own contributions.
What the government subsidy actually achieves
If you were to invest only your own contribution of €300 a month with no government subsidy at all, at an identical return and over the same term, you would end up with around €909,178. In the example, the basic allowance and career starter bonus therefore contribute a good €124,390 (including compounding) to the final balance. They help you actually cross the one-million mark instead of staying just below it. The decisive lever, however, remains the long investment period itself, begun early.
In other words: the subsidy is a valuable extra boost, not a substitute for an early start. If you are 40 today instead of 23, no allowance in the world will make up those lost years.
Staying realistic: what this example does not show
A serious worked example also shows its own limits. That is simply part of being honest:
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Tax in the decumulation phase: The payout is taxed on a deferred basis, at your individual tax rate. The final balance quoted is a gross figure before this taxation, not a net payout amount.
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No guaranteed return: A net return of 6.5 percent is a historically plausible but not guaranteed average. Individual years can turn out clearly negative, especially without a contribution guarantee.
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Inflation not taken into account: The worked example shows nominal values. The real purchasing power of €1,036,763 in 44 years’ time will be noticeably lower, depending on the rate of inflation.
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Constant contribution without increases: In practice, salaries usually rise over a working life. A contribution that grows with income would tend to increase the final balance further in reality.
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Interruptions not taken into account: Parental leave, unemployment or other phases of life with lower or suspended payments have not been factored in.
In short: The worked example shows a plausible model calculation based on openly disclosed assumptions, not a guarantee and not individual investment advice. To assess your personal situation it is worth looking at the current rules directly at the [BMF] (Link target: add BMF FAQ on the Altersvorsorgedepot).
Conclusion
The worked example shows that the path to seven-figure capital via the Altersvorsorgedepot is realistic in mathematical terms, provided you start early, save with discipline over decades and give the return enough time to work. The government subsidy is a valuable building block, but not the decisive one. The real lever is simply this: to start as early as possible.
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Is one million euros in the Altersvorsorgedepot realistic?
calculatorIn arithmetical terms yes, under the assumptions stated: an early start at 23, a 44-year term, an own contribution of €300 a month and a net return of 6.5 percent. There is no guarantee of this, however, since the return is a historical one, not an assured one.
How much does the government subsidy contribute to the final balance?
In this example the direct subsidy share is around 2.3 percent of the final balance. Compounded over the long term, however, this effect grows to roughly €124,390.
Why does the securities account grow faster at the end than at the beginning?
Because compounding works on a growing base. The larger the capital saved, the more income the return itself generates, independently of your own contributions.
What happens if I start later than at 23?
Every year you start later reduces the time in which compounding can work, disproportionately so. Starting at 33 instead of 23 would lower the final balance in this model far more sharply than ten years might suggest at first glance.
Is the full €300 monthly own contribution eligible for the subsidy?
No. Only the first €150 a month (€1,800 a year) trigger the full basic allowance . Any amount above that continues to grow tax-free in the securities account, but without an additional allowance.
Jurist & Finanzmarktexperte · AVD Anbieter Vergleich
Rolf Henning Hackel ist Diplom-Jurist und seit über 22 Jahren als Vorstand und Geschäftsführer für unterschiedliche Softwaredienstleister der Finanzbranche sowie als Unternehmensgründer tätig. Als absoluter Marktexperte kennt er nicht nur die verschiedenen Anbieter, sondern auch die Produkte der Finanzindustrie mit ihren Stärken und Schwächen sowie deren regulatorischen Rahmen. Beim AVD Anbieter Vergleich schreibt er über das neue Altersvorsorgedepot und erklärt Förderung, Anbieter und Renditechancen in verständlichen Worten – unabhängig und werbefrei.
