Deferred taxation in the Altersvorsorgedepot

What does deferred taxation mean?

The opposite of up-front taxation: tax is levied not when you pay in, but only when money is paid out. This principle already applies to the statutory pension, the Rürup pension and occupational pension schemes. With the Altersvorsorgedepot it now also enters private securities-based retirement provision.

How does it work in practice in the Altersvorsorgedepot?

Sample calculation: the tax leverage

Why does this principle exist?

First, because pension income in old age is typically lower than earned income, so a more favourable tax rate applies. Second, because deferring tax over decades provides an interest-like advantage : the capital that would otherwise be taxed immediately keeps working and earns an additional return.

Pitfalls and special cases

• In the case of a non-qualifying withdrawal before the age of 65, allowances and tax advantages have to be repaid.
• Anyone who moves abroad (outside the EU/EEA) may also be required to repay them.
• The one-off withdrawal of up to 30% is taxed in full in the year of payout.

Three everyday tax examples

Health insurance in the pension phase

Members with compulsory cover under the statutory health insurance scheme for pensioners are expected to pay none contributions on payouts from the Altersvorsorgedepot. People voluntarily insured under the statutory scheme do pay, because there all income is used to assess contributions. Privately insured people are not affected, as their premiums do not depend on income. If you are voluntarily insured under the statutory scheme, you should factor this into your overall return.

Tax deferral as a hidden compounding booster

The often overlooked effect of deferred taxation: during the accumulation phase the tax money stays in the securities account and earns a return of its own. Over 30 years this can raise the final balance by an additional 10–15% compared with up-front taxation during your working life.