Setting up your Altersvorsorgedepot: savings plan and allowance application

Tilman Freyenhagen

Published on 15 June 2026 · Updated on 7 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

After opening the account: why setup matters now

Once you've opened your Altersvorsorgedepot, you need to complete three essential steps so the savings plan and state subsidy run smoothly. First, set the rate and interval of your ETF or bond savings plan. Second, submit the Dauerzulagenantrag so the allowances are collected automatically. Third, check your Freistellungsauftrag. Only this active configuration makes the state support work as intended, and it helps you avoid costly losses in subsidy.

There's a crucial difference between simply opening the account and actually activating the state subsidy — one that many investors underestimate. Without manual configuration, the account stays an empty shell with no tax-effective leverage. To capture the maximum compounding effect of the state allowances from day one, you need to take action. The law ties the subsidy to specific, regular own contributions. If these aren't set up through an automated savings plan, the claim to the annual allowances lapses. This applies equally to classic bond portfolios and modern, return-focused ETF savings plans. With the subsidy calculator, you can work out for yourself how the state allowances might affect your expected final capital over the long term (an illustrative calculation, not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

1. Setting up the savings plan: Set the exact monthly savings rate and your preferred interval so your own contributions are paid in continuously and without manual effort.
2. Dauerzulagenantrag: Right after opening the account, give your chosen provider the mandate to claim the state allowance from the relevant authority automatically for you every year.
3. Freistellungsauftrag: Check carefully whether a Freistellungsauftrag is relevant to you, always taking into account the specific tax rules and the favourable tax deferral within the Altersvorsorgedepot.

This structured, prompt setup ensures your private retirement provision grows on schedule from day one, and that you don't leave state money on the table. You can look up the exact regulatory basis for the Riester reform, and every tax detail of the new private pension, at any time in the neutral knowledge section. Keep in mind that only the combination of continuous own contributions and allowances credited on time unlocks the full potential of the state-subsidised model for self-directed savers^[1].

Step 1: Setting up and configuring the ETF savings plan correctly

Once the account is successfully open, you set up your Altersvorsorgedepot in three steps: first, create your ETF savings plan with a rate and interval. Then submit the Dauerzulagenantrag so the state subsidy is claimed automatically every year, and finally check whether a Freistellungsauftrag is relevant to you. Only this optimal configuration makes the state subsidy concept take full effect and work as intended.

Setting up an automated ETF savings plan is the first, fundamental step towards continuous wealth-building. From the 2027 launch, you benefit from flexible ways to pay in as you build capital over the long term. We recommend choosing broadly diversified, state-certified global equity ETFs such as the MSCI ACWI or FTSE All-World, so you benefit from global equity markets without high insurance costs. Feel free to use our subsidy calculator to simulate the exact long-term development, including the subsidy rate, in advance.

• Choosing eligible investments: Make sure the ETF or fund you choose is officially certified for the Altersvorsorgedepot so you receive the state subsidy.
• Setting the savings rate and interval: Choose a monthly or quarterly savings rate that suits your financial situation. You can adjust your contributions flexibly at any time.
• Observing the minimum contribution: To be eligible for the subsidy at all, you have to invest the statutory minimum contribution of 120 euros a year, which works out to a minimum monthly rate of 10 euros. You only receive the full state Grundzulage of up to 540 euros a year with an own contribution of 1,800 euros.

The state subsidy requires that contributions flow directly into certified retirement contracts^[2]. Because the reform has dropped the contribution guarantee, investors can now use the return potential of equity ETFs without restriction for the first time, which allows for a markedly higher long-term return expectation. When setting up your savings plan within the account, make sure all transactions run automatically and free of charge, to keep the total expense ratio to a minimum. You'll also find further detail on the reform and on choosing the right funds in our comprehensive Altersvorsorgedepot guide.

Securing the maximum state subsidy with the right savings rate

Once the new Altersvorsorgedepot is successfully set up with a provider, optimising the savings rate becomes the priority for you as a self-directed saver. To make full use of the state subsidy, you need to plan your annual own contributions precisely. The law provides that, from the 2027 launch, a single upper limit applies to subsidised contributions, which are topped up by allowances^[3]. If you want to work out the optimal rate for your personal situation, our digital subsidy calculator can help — it maps these BMF-compliant figures precisely.

The legal framework and contribution limits

The Altersvorsorgedepot's structure includes a clear cap. From 2027, the maximum subsidised annual own contribution is 1,800 euros a year. ^[3]This subsidised contribution carries the full Grundzulage of 540 euros. Beyond that, you can keep paying in voluntarily up to the absolute contribution cap of 6,840 euros a year; this does not generate any additional allowances, however. At the same time, there is a statutory minimum own contribution of 120 euros a year. Only those who pay in at least this minimum contribution gain any claim to the Grundzulage at all. For a detailed tax and regulatory classification, see our neutral knowledge section.

To make the most of these rules, once you've opened the account, it's best to set up your ETF savings plan to match your calculated savings rate. A monthly interval spreads your contributions evenly across the year, which helps you stay exactly within the contribution limits. Please note that all calculations are always illustrative. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. Our portal supports you with the aim of bringing transparency and neutrality to your financial planning.

Step 2: The Dauerzulagenantrag for automatic subsidy

For the state allowance to flow straight into your account year after year without manual effort, a Dauerzulagenantrag is essential. With this one-off mandate, you authorise your account provider to claim the state subsidy directly from the Zentrale Zulagenstelle für Altersvermögen (ZfA, the central pension allowance office)^[1]. That saves administrative work and ensures you don't miss out on any state subsidy. In our knowledge section, we also explain in detail which legal requirements must be met for the full benefit.

• Giving a one-off mandate: You set up the application just once, either directly when opening the account or afterwards through your provider's online banking.
• Automatic data transmission: Your account provider automatically sends the contribution-relevant data to the ZfA every year.
• Direct crediting: The allowance office checks your entitlement and transfers the state subsidy directly into your Altersvorsorgedepot.
• Regular adjustment: When your salary jumps, you marry, or you have children, you should review the contribution limits to get the maximum subsidy.

Once set up, the allowance process runs entirely in the background. You can monitor the current status and the arrival of the state subsidy directly in your account's transaction history. The provider is legally required to give you a detailed statement of the allowances received every year. If you want to work out in advance how large your individual allowance will be, the subsidy calculator can help you determine it precisely. Please note: the tax treatment and the level of the subsidy depend on your personal circumstances (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Step 3: Checking the Freistellungsauftrag — why the AVD is an exception

Unlike a regular securities account, you don't need to set up a Freistellungsauftrag for your Altersvorsorgedepot during the accumulation phase. That's down to the statutory, complete tax deferral. All returns — distributions, dividends, or realised capital gains — remain completely tax-free within the account and are only taxed later, on a deferred basis, during the payout phase in retirement^[4]. The annual Vorabpauschale (advance lump-sum tax), which can trigger tax on classic ETF savings plans, also doesn't apply to the subsidised account. The tax basis for this is laid out, on a source-based footing, in the Einkommensteuergesetz (Income Tax Act), ensuring your capital can grow without any annual tax deduction.

• Untouched allowance: Your regular Sparer-Pauschbetrag (saver's flat-rate allowance) of currently 1,000 euros per person, or 2,000 euros for jointly assessed spouses, remains fully available for your other private investments.
• Maximum compounding effect: Since no Abgeltungsteuer (withholding tax on capital gains) or Vorabpauschale is deducted, the entire return stays in the account, substantially boosting the compounding effect over the decades.
• No bureaucratic hassle: after opening the account, you don't need to worry about the annual adjustment or allocation of Freistellungsaufträge for this account.

This special status makes the new Altersvorsorgedepot a highly efficient instrument for private wealth-building. If you want to look more closely at how this tax deferral plays out over the long term compared with a taxable ETF savings plan, our source-based subsidy calculator offers precise decision support. You'll also find further background on the tax treatment during the accumulation and payout phases in our neutral knowledge section.

Note: the tax treatment depends on individual circumstances and may be subject to future changes. The information presented is for information purposes only and does not constitute tax or financial advice. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Tax specifics during the accumulation phase and the tax return

The state subsidy for the Altersvorsorgedepot only unfolds its full effect through the annual income tax return. Besides the direct state allowances for your savings contributions, you can claim your own contributions as Sonderausgaben (special expenses) for tax purposes. As part of your assessment, the tax office automatically runs a Günstigerprüfung (favourability check) to determine whichever route is most tax-advantageous for you.

How the tax favourability check works

In this favourability check, the relevant tax office compares your personal tax benefit from deducting your Sonderausgaben with the allowances you're entitled to. If the tax saving from deducting your contributions is higher than the allowances already granted, the difference is offset directly against your income tax and paid out to you as a tax refund^[5]. If the tax saving is lower, on the other hand, you keep the allowances already credited to your account, so you're never left financially worse off.

Contributions and tax allowances

To make the most of the tax benefits, you should keep an eye on the annual upper limits. Contributions are deductible as Sonderausgaben up to a statutory subsidy limit. As a neutral guide, Vorsorgedepot-Lotse helps you make sense of the tax framework. If you want to calculate the tax effects and the optimal own contribution for your personal situation, Vorsorgedepot-Lotse's subsidy calculator can help. You'll find further detail and deeper insight in our knowledge section.

• Declaring it on your tax return: You enter all your own contributions and the state allowances received in the relevant schedule of your annual tax return, so the tax office can carry out the comparison.
• How the favourability check works: the automatic comparison ensures you benefit either from the direct allowances or from additional tax relief via the Sonderausgaben deduction.
• Tax-free accumulation phase: gains, distributions and reinvestments within the account remain tax-free throughout the entire accumulation phase, allowing the compounding effect to work at full strength.

Please note: the tax calculations and projections are only illustrative examples and do not constitute tax or financial advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Ongoing monitoring: adjusting your savings plan when your salary changes

Once set up, an Altersvorsorgedepot isn't a static product. To keep making the most of the state subsidy and the tax benefits over time, you should continually adjust your savings rate to your circumstances. Because the Grundzulage is calculated through a two-tier subsidy system, your annual contributions largely determine the size of the allowance. A maximum Grundzulage of 540 euros requires an annual own contribution of 1,800 euros^[6]. If your income changes, you should check whether you can keep saving this amount efficiently, or whether adjustments are needed.

Family changes such as the birth of a child deserve particular attention. For each child, you receive an additional Kinderzulage of up to 300 euros a year^[6]. This substantially raises your account's subsidy rate. If you find yourself in a period of financial strain, the Altersvorsorgedepot offers a high degree of flexibility: you can reduce your savings rate or temporarily suspend contributions to the plan without losing the subsidy you've already received. For precise planning of such adjustments, using digital tools like the subsidy calculator is recommended, while more in-depth detail can be found in the guide.

• Annual income changes: Check whether your savings rate still fits your available income, so you can make full use of the maximum subsidised amount.
• Birth of a child: Register new Kinderzulagen with your provider promptly, so the annual state contribution of up to 300 euros per child flows straight into your account.
• Financial strain: Use the option to suspend contributions or reduce your savings rate, to respond flexibly to changed circumstances without giving up your retirement provision altogether.

Note: all calculations and tax figures are illustrative and depend on your individual circumstances. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Conclusion and next steps: from setup to long-term wealth-building

Once you've successfully opened an Altersvorsorgedepot, you need to take action to make the most of the state subsidy and the tax benefits. Correct setup comes down to three essential steps: first, set up your ETF savings plan with a rate and interval. Second, submit the Dauerzulagenantrag so the state allowance is claimed automatically every year. Third, check the tax classification to make optimal use of the tax deferral effect^[7]. Only once these steps are complete does the state retirement structure work as intended.

1. Set up your ETF savings plan: Choose the eligible ETF you want and set the regular savings rate and the execution interval, so you build wealth continuously.
2. Submit the Dauerzulagenantrag: Activate the Dauerzulagenantrag directly with your provider, so the state allowances (such as the Grundzulage of up to 540 euros a year) flow straight into your account without annual manual effort.
3. Check the tax classification: Clarify how your account is optimally positioned for tax purposes, and make full use of the tax deferral advantage during the accumulation phase.

Automating these processes protects you from emotional investment decisions and ensures you capture the compounding effect with discipline. Anyone who opts for self-directed investing will find comprehensive, well-sourced guidance on the knowledge section. If you want to work out your individual subsidy situation precisely in advance, our neutral subsidy calculator is available to you free of charge. Note: model calculations are for illustration and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

In summary, from 2027 the new Altersvorsorgedepot offers a return-focused alternative to conventional private pension provision. The combination of ETF investment and state contributions lays the foundation for reliable wealth-building. With the right setup and an automated structure, your private pension runs in the background while you focus on other areas of life. Whether you manage your account yourself or draw on professional support when needed, early and structured preparation secures you the best possible start.