Altersvorsorgedepot from 55: a sample calculation for the final stretch

Katrin Straub

Published on 15 July 2026 · Updated on 7 August 2026 · Managing Director, imatch GmbH

Starting late at 55: an often underestimated savings window

Anyone who starts an Altersvorsorgedepot only at 55 has a short but highly attractive savings window of exactly 12 years until retirement at 67. The remaining time to save is shorter than for career starters, but the immediate tax lever and the state subsidy make this late final stretch mathematically very efficient. As the analyses on the Altersvorsorgedepot from 50 show, the tax benefits act as an immediate return booster that noticeably cushions investment risk at this stage of life^[1].

The tax lever as a guaranteed return booster

For high earners at their peak-earnings stage, the Altersvorsorgedepot has its greatest effect in the final stretch. Because contributions can be deducted from tax up to a statutory limit, your tax burden falls immediately in the year you pay in. This immediate tax refund significantly reduces your net own contribution, while the full gross amount keeps compounding inside the account, invested in ETFs. At a personal tax rate of, say, 40 percent, a savings contribution of 1,800 euros costs you only 1,080 euros net, while the full 1,800 euros keeps working for your retirement inside the account. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

• Immediate liquidity advantage: the Sonderausgabenabzug gets you part of your contributions back as early as your next tax assessment.
• Tax-free reinvestment: dividends and capital gains are reinvested inside the account over the full 12 years without any deduction of Abgeltungsteuer (the flat withholding tax on investment income).
• No contribution guarantees: dropping the rigid guarantee requirements of the old Riester-Rente (Germany's existing subsidised private pension) means you can benefit from the return potential of broadly diversified equity ETFs even over shorter periods.
• Low effective costs: low account fees at modern providers make sure most of the state subsidy actually goes into building your wealth.

Whether you manage the account yourself or prefer professional guidance depends on your personal experience. With the subsidy calculator, you can work out the exact effects for your individual tax situation, while our independent advice service puts you in touch with licensed experts to help secure your strategy for your final working years.

The new Altersvorsorgedepot in 2027: the state subsidy in detail

From 1 January 2027, new state subsidy structures replace the Riester-Rente, offering attractive leverage especially for people in the late stage of their career. Anyone starting at 55 has a precise investment window of twelve years until regular retirement at 67^[1]. The heart of the reform is the tiered allowance subsidy: the state grants an allowance of 50 percent on the first 360 euros of your own contribution and 25 percent on further contributions up to 1,800 euros^[1]. With an annual own contribution of 1,800 euros, the full 540 euros of the state Grundzulage flow directly into your account^[1]. This subsidy rate acts as an immediate return booster before the market itself even moves, making the Altersvorsorgedepot from 50 a highly efficient instrument for the final stretch.

• Annual own contribution: 1,800 euros of your own savings for the maximum subsidy.
• State Grundzulage: 540 euros a year, paid in directly and reinvested.
• Total savings volume: 2,340 euros invested a year, before market returns.
• Extra tax benefit: high earners can also claim the Sonderausgabenabzug against income tax.

Beyond the direct allowances, high-earning employees in their final working years benefit especially from the tax lever. Contributions to the Altersvorsorgedepot can be claimed as Sonderausgaben (special expenses) to reduce tax, and the tax office automatically identifies the most favourable option for you through the Günstigerprüfung (the automatic best-outcome comparison)^[1]. At a high personal tax rate, this means a considerable share of your contributions comes back to you through your tax assessment. Because dividends and capital gains inside the account are reinvested tax-free for the entire twelve-year term, a powerful compound-interest effect builds up. This combination noticeably offsets the shorter investment period compared with younger savers. Please note: all calculations and projections are for illustration only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Through the neutral knowledge section, we guide you independently along this path. In addition, you can use the subsidy calculator tool to work out the exact subsidy effects for your personal tax situation, to decide whether the direct route via a neobroker or an independent advice service is the best fit for your retirement provision.

The tax lever as a return booster for high earners in the final stretch

For late savers who want to actively build their pension again at 55, the clock ticks faster. In this shortened window of just twelve years, though, the new Altersvorsorgedepot, which launches on 1 January 2027, unfolds a particular strength: the Sonderausgabenabzug. Especially for high earners with a high personal tax rate, this tax lever is an effective accelerator for building wealth. Anyone who pays the maximum annual own contribution into the subsidised account benefits from substantial relief on their tax return, because the contributions can be claimed as Sonderausgaben. The Federal Ministry of Finance (BMF) provides that contributions to the Altersvorsorgedepot can be claimed as Sonderausgaben up to a maximum of 1,800 euros a year^[1]. Even if you only start building wealth later in life, experience shows that an Altersvorsorgedepot from 50 — or indeed at 55 — can pay off handsomely, since the immediate refund noticeably lowers your net outlay.

The tax lever, in numbers

• Annual own contribution: you pay up to 1,800 euros a year into your ETF-based Altersvorsorgedepot.
• Günstigerprüfung by the tax office: the tax authorities automatically check whether the allowance subsidy or the Sonderausgabenabzug is more favourable for you.
• Immediate refinancing: at a top tax rate of, say, 42 percent, you get a substantial share of your savings contribution refunded directly through your tax return.
• Tax-free reinvestment: the dividends and capital gains of your chosen ETFs stay completely tax-free inside the account throughout the twelve-year accumulation phase and are reinvested in full.

This interplay means you effectively need to put in significantly less capital out of your own pocket to let the full compound-interest effect work on the complete 1,800 euros inside the account. The remaining twelve-year window is thus used optimally to build a solid financial cushion before retirement. For a tailored calculation, you can use the subsidy calculator. Please note that the tax treatment depends on your individual situation. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Sample calculation for the final stretch: how much capital builds up in 12 years

Anyone starting the new Altersvorsorgedepot at 55 has a clear window of exactly 12 years until regular retirement at 67. Even in this seemingly short late phase, the state subsidy provides considerable leverage. With rigid contribution guarantees dropped, your savings flow directly into high-return investments such as equity ETFs. Even with a more defensive allocation, the direct state allowance stabilises your personal return from day one, making the pension account an attractive addition alongside an unsubsidised ETF savings plan.

This worked example shows the interplay of your own contributions and state support. Over the 12 years, you pay in a total of 21,600 euros yourself. The state adds 6,480 euros in allowances over this period. Thanks to the compound-interest effect, at an assumed, historically conservative equity return of 4 percent a year, the account grows to around 35,000 euros. Without the allowances, the final balance at the same return would be only around 27,000 euros. The state subsidy thus delivers a reliable jump in returns, which is particularly valuable in making up lost time for savers looking at the Altersvorsorgedepot from 50.

• An immediate return booster from up to 540 euros of state Grundzulage a year on your own contributions.
• Tax-free reinvestment of all dividends and returns throughout the full 12-year accumulation phase.
• Additional optimisation potential through the Sonderausgabenabzug on your income tax return.

Please note that actual performance depends on fluctuations in the capital markets and cannot be guaranteed. To calculate your personal subsidy and tax saving precisely, our neutral subsidy calculator is available to you. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The top-up turbo: making full use of the maximum contribution

Anyone starting the new Altersvorsorgedepot at 55 can build up substantial subsidised wealth in a short time, thanks to the maximum contribution of 6,840 euros a year^[3]. This high contribution ceiling acts as an effective top-up turbo, since contributions up to this limit grow completely tax-free inside the account, while allowances and the Sonderausgabenabzug apply to own contributions of up to 1,800 euros. Especially for high earners at the peak of their lifetime earnings, this creates a massive tax lever that can mathematically offset the shortened twelve-year investment horizon until retirement. Whether an Altersvorsorgedepot from 50 pays off is decided largely by this leverage effect.

While the direct state allowance subsidy and the Sonderausgabenabzug apply to contributions of up to 1,800 euros a year, the tax-free accumulation phase secures the benefit for the amount above that, up to the full 6,840 euros. This is especially advantageous for high earners, since their personal tax rate maximises the saving. The tax office refunds a substantial share of your contributions through the Günstigerprüfung. These liquidity refunds can in turn be reinvested, producing a compound-interest effect at the private level. Inside the account itself, all dividends and capital gains from the ETFs grow completely tax-free over the remaining twelve years.

• Maximising the contribution ceiling: contributions of up to 6,840 euros a year grow completely tax-free inside the account.
• Tax-free ETF growth: no tax is due on dividends or capital gains inside the account throughout the 12-year accumulation phase, which maximises the compound-interest effect.
• Direct allowance capture: on the first 1,800 euros of your contribution, you secure the full state allowance subsidy of up to 540 euros a year.
• Flexible liquidity return: the tax refund from the Sonderausgabenabzug noticeably raises your net savings rate, or flows back to you directly as extra free liquidity.

This tax lever acts like an immediate, risk-free additional return on your own contributions. Even if equity markets fluctuate during a twelve-year late-career phase, the state tax subsidy effectively cushions the risk. For an exact calculation tailored to your personal tax burden, we recommend using our subsidy calculator tool. It lets you work out in moments exactly how large your individual saving is and how to shape your final stretch optimally. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Minimising risk before retirement: asset allocation for savers over 55

Anyone starting an Altersvorsorgedepot at 55 has a window of exactly 12 years until regular retirement at 67. A pure equity-ETF portfolio is risky during this phase because of short-term market fluctuations. Still, giving up on equity returns altogether is the wrong approach, since state allowances and tax-free reinvestment inside the Altersvorsorgedepot act as leverage. Late starters therefore need to find a smart balance. The Federal Ministry of Finance provides for broad investment options within the Altersvorsorgedepot, so you can flexibly adapt your portfolio to your risk profile^[1]. Solid planning is essential here to make the most of the final stretch.

Glide-path strategy: gradually reducing risk

To protect your accumulated wealth from sudden market slumps shortly before retirement, a structured glide path is advisable. Over the years, you gradually shift your capital from volatile equity ETFs into lower-volatility asset classes. The new law lets you invest your Altersvorsorgedepot more safely as you get older and, for example, blend in bond ETFs or money-market products. Especially if you start only from 50 or at 55, this risk-minimised asset allocation provides the necessary stability without having to forgo return potential in the early years.

• Initial phase (age 55 to 58): a higher equity share of, say, 60 % to 70 % in broadly diversified world equity ETFs, to make the most of early capital growth through the compound-interest effect.
• Transition phase (age 59 to 63): gradually reducing the equity share to around 40 % and steadily building up defensive positions such as short-dated government-bond ETFs.
• Protection phase (from age 64): focus on capital preservation with an equity share of at most 20 % to 30 %, with the rest held in safe money-market funds or bond ETFs.

Whether you carry out this reallocation yourself as a self-directed saver through a broker or get advice is up to you. Our knowledge section gives you all the facts you need on the Riester reform. If you want to switch from an existing contract, our guide analyses precisely from what point switching from Riester pays off for you. For a tailored structuring of your investment, our independent advice service is also on hand, connecting you with qualified, product-independent experts (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.).

Switch or start fresh? The option for existing Riester savers

Many savers starting their final stretch at 55 already hold a Riester contract. Under the statutory reform, it's possible to transfer the accumulated Riester capital directly into the new Altersvorsorgedepot. Such a switch from Riester is tax-neutral, so the existing capital can keep working in the new, higher-return account without any immediate tax charge. The legislator has also set a rule that the outgoing provider may charge a switching fee of no more than 150 euros for this transfer^[1]. That makes the transition calculable and financially very attractive for late starters.

Requirements and benefits of switching

Anyone who opts to switch accounts needs to be aware that this means giving up existing contribution guarantees. But it's precisely replacing these rigid guarantees that opens up the chance of a market-rate return through broadly diversified ETFs in the new Altersvorsorgedepot in the first place. By giving up the old Riester guarantee, you free your capital from low-return investments for the remaining 12 years. The transfer is therefore a lever for shifting your existing balance into a growth-oriented equity allocation, without jeopardising the tax benefits or allowances you've already earned.

• Tax neutrality: transferring the capital does not trigger any early taxation of the balance.
• Cost cap: switching costs at the outgoing Riester provider are legally capped at no more than 150 euros.
• Keeping your allowances: any state subsidy already received stays fully intact if you switch correctly.
• Flexibility: the transferred capital can be reinvested directly into low-cost ETFs inside the Altersvorsorgedepot, to make the most of compound-interest effects in the final stretch.

For savers at 55, a coordinated switch is worth strategic consideration, to make the best possible use of the remaining working years. Whether a full transfer or a parallel new contract makes more sense depends on the terms of your individual Riester contract. The knowledge section offers helpful guides on this, giving you unbiased orientation on the way to the optimal decision.

The payout phase from age 65: flexibility and deferred taxation

Under the reform of private pension provision, the earliest possible start of payouts for subsidised contracts rises from the previous 62 to 65 years^[1]. Anyone starting an Altersvorsorgedepot only at 55 therefore has a precisely plannable window of exactly 12 years until regular retirement. During this time, you benefit from tax-free reinvestment of all dividends and capital gains inside the account. Only once you reach the age threshold of 65 does the account's payout phase begin, during which the accumulated balance can gradually be used to top up your statutory pension.

The tax treatment follows the principle of deferred taxation. Because you typically earn your maximum income during this late working phase at 55, your personal tax rate is high. Deducting the contributions from tax secures you substantial tax relief immediately. In retirement from age 65, your personal tax rate is usually much lower, which produces a noticeable tax saving. This high tax lever offsets the shorter term and shows that an Altersvorsorgedepot from 50 or 55 pays off particularly well for high earners in the final stretch.

During the payout phase, the Altersvorsorgedepot offers a high degree of flexibility. Instead of a rigid requirement to annuitise for life, you can draw down the capital through a flexible drawdown plan or convert it into an annuity. To stop your accumulated wealth being put at risk by sudden market swings shortly before retirement, you should adjust your investment strategy in good time. A structured shift into lower-risk asset classes helps you invest more safely as you get older and effectively minimises the risk of price losses shortly before retirement.

• Shift in the age threshold: under the reform, the regular start of payouts rises uniformly from 62 to 65.
• Tax-free accumulation phase: all realised gains and distributions inside the account stay tax-free until retirement.
• Deferred taxation: payouts in retirement are taxed at whatever your personal tax rate is at the time.
• Flexible payout options: you can choose between flexible drawdown plans and classic annuity options.

Please note that all calculations, tax effects and model assumptions mentioned are for illustration only. They depend on your personal financial circumstances and on future legislation, and do not constitute legally binding advice. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.