Altersvorsorgedepot with €300 a month: a worked example

Katrin Straub

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

Private pension provision from 2027: why €300 a month is a strategic lever

Paying €300 a month into the new Altersvorsorgedepot from 2027 builds up €3,600 a year, making excellent use of a substantial share of the statutory cap of up to €6,840 for the Sonderausgabenabzug (deduction as a special expense)^[1]. Over an investment horizon of, say, 30 years, this disciplined contribution builds substantial wealth that is tax-free from the outset, and compounding makes it markedly more efficient than a conventional, taxable securities savings plan. This moderate but consistent contribution rate gives you an excellent balance of immediate tax relief and long-term wealth building. To work out the precise effect on your tax bill, the knowledge section offers well-founded guides, while the subsidy calculator lets you run through different calculations.

For ambitious savers and high earners, this contribution size is a highly effective tool. The state, or tax subsidy, acts here as a lever on your personal return. Rather than investing capital out of income that has already been fully taxed, the Altersvorsorgedepot (AVD) delivers significant relief on your annual income tax return. Against this backdrop, many savers ask themselves how much they should best pay into the Altersvorsorgedepot. At €300 a month, you sit well above the minimum contribution and draw on the tax benefits noticeably, without exceeding the maximum annual subsidy cap.

• Direct reduction of taxable income by up to €3,600 a year through the Sonderausgabenabzug.
• Full tax deferral throughout the decades-long accumulation phase, so dividends and capital gains are reinvested without any immediate tax deduction.
• High flexibility when your income changes, since the contribution rate can be adjusted to new circumstances at any time.
• No contribution guarantees in the return-oriented account, which means your capital can flow 100 percent into high-return equity ETFs.

This structured approach makes a monthly contribution of €300 an excellent option for anyone looking to combine a private ETF investment with state backing. Please note: the calculations and scenarios shown here are for information purposes only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The basic rules of the subsidy: where your €3,600 annual contribution fits in

Saving €300 a month in the new Altersvorsorgedepot adds up to an annual contribution of €3,600, putting the state subsidy to highly efficient use. This own contribution does exceed the statutory cap of €1,800 for the direct state Grundzulage, but it remains fully within the tax-subsidised Sonderausgabenabzug of up to €6,840 per calendar year. Thanks to this favourable split, an ambitious saver like you draws on both the maximum allowance and a far-reaching tax benefit throughout the entire accumulation phase.

The calculation of the maximum €540 Grundzulage follows a statutory two-tier logic: on the first €360 of your annual own contribution you receive a 50 percent subsidy (equivalent to €180), while every further euro up to the subsidy ceiling of €1,800 attracts a rate of 25 percent (a further €360 at most)^[1]. Since your contribution rate clearly exceeds this threshold, you automatically secure the full €540 as a direct allowance. For the remaining €1,800 of your contribution you no longer receive an additional direct Grundzulage, but you do benefit, via your income tax return, from a noticeable reduction in your taxable income.

For high-earning employees and ambitious savers, this interplay is especially attractive. The statutory Günstigerprüfung (favourability check) carried out by the tax office determines whether the tax saving from the Sonderausgabenabzug is more advantageous for you than the allowances received^[3]. Because the entire capital inside the account can grow tax-free during the accumulation phase, the annual Vorabpauschale and capital gains tax on dividends and capital gains no longer apply. You can work out exactly how the Altersvorsorgedepot is tax-subsidised, and whether the maximum subsidy is worth it for you, using the subsidy calculator. (Note: the calculations are illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

The Sonderausgabenabzug: how the state subsidises your €300 contribution

If you invest €300 a month in your Altersvorsorgedepot, you make optimal use of the tax subsidy. Over a year, that works out at €3,600. The state supports this commitment through the so-called Sonderausgabenabzug on your income tax return^[3]. Your contributions directly reduce your taxable income, which brings noticeable tax relief especially for high earners with a high personal tax rate.

The Bundesministerium der Finanzen (Federal Ministry of Finance, BMF) has set an annual cap of €6,840 for the new Altersvorsorgedepot^[3]. With your €3,600 a year, you draw on a good 52 percent of that ceiling. The tax-subsidised core range runs up to contributions of €1,800 a year, for which you can additionally receive the state Grundzulage. The tax office's automatic Günstigerprüfung ensures that you always receive whichever proves more advantageous: the allowance or the tax relief.

• Tax deductibility: your annual contribution of €3,600 can be claimed as a Sonderausgabe (special expense) and directly lowers your taxable income.
• Günstigerprüfung: the tax office automatically calculates whether the Sonderausgabenabzug or the direct allowance is more financially advantageous for you.
• Using the cap: your contributions sit comfortably below the statutory ceiling of €6,840 a year, so your entire contribution stays within the subsidised range.

This tax relief means your actual net cost is well below the €300 a month you invest. You can reinvest the tax money you save, or use it for living expenses, while the full €300 a month keeps working for you in the account. To calculate the precise cost effect and your individual tax benefit compared with unsubsidised forms of investment, you can use our subsidy calculator or take a look at our after-tax comparison, where you can precisely simulate the long-term effects.

The annual cap of €6,840: room for future increases

The new Altersvorsorgedepot gives ambitious savers a high degree of tax flexibility. While the direct state allowance is capped at contributions of up to €1,800 a year, the tax-effective ceiling for special expenses totals €6,840 a year^[4]. If you opt for a monthly contribution of €300, that adds up to €3,600 a year. That already makes use of a large share of the subsidy, while still leaving you valuable financial headroom. You can flexibly increase your contribution when your salary rises or you receive a one-off payment, so as to make full use of the tax-subsidised range at a later point. You can find details on how to spread your contributions in the guide to the maximum subsidy.

For high earners and ambitious investors, this flexibility is a decisive advantage. The account acts as a tax-sheltered space. All dividends, interest and capital gains generated inside the account remain tax-free throughout the entire accumulation phase and are automatically reinvested. If you gradually raise your monthly contribution from €300 towards the cap, you massively reinforce this tax-advantaged compounding. Details on the taxation of gains, and on how to invest tax-free instead, show the high efficiency compared with a conventional, taxable ETF savings plan.

• Adjusting for salary jumps: if your income rises, you can easily adjust your monthly contributions to reduce the higher tax burden via the Sonderausgabenabzug.
• Contributions from one-off payments: bonuses, Christmas pay or inheritances can be paid directly into the account as one-off contributions, as long as the annual cap is not exceeded.
• Tax-free reinvestment: larger assets grow inside the account without the annual burden of the Vorabpauschale or capital gains tax on dividends.

To analyse the tax effects of different contribution rates precisely, our subsidy calculator is available to you. With this tool you can compare different scenarios and work out how much extra return tax-free compounding brings you compared with an unsubsidised securities account. Please note: all calculations and scenarios shown are for illustration and are non-binding. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Tax-free growth in the account: the huge advantage during the accumulation phase

Paying €300 a month into an Altersvorsorgedepot makes optimal use of tax-free compounding during the accumulation phase. With an annual contribution of €3,600, all dividends, interest income and capital gains inside the account remain completely exempt from capital gains tax and the annual Vorabpauschale^[5]. If you are wondering whether you have to keep paying tax on gains, the answer for the whole accumulation phase is clear: no, no tax falls due until the payout phase. As a result, compared with a conventional account, you have a larger capital pool available for reinvestment at every point in time.

In a conventional private account, the annual Vorabpauschale in particular means savers have to keep liquidity available outside the account to settle the tax due on as yet unrealised gains from accumulating ETFs. With the state-subsidised Altersvorsorgedepot, this bureaucratic and financial hurdle disappears entirely^[5]. Rebalancing, or switching funds, is also possible inside the account without capital gains tax eating into the compounding effect. We compare the two models in the overview below.

Thanks to this consistent tax deferral, your wealth grows considerably faster over a term of, say, 30 years. Every euro of tax you save stays inside the account and itself generates further returns in the following years. How this dynamic affects your expected pension over the long term is set out in our after-tax comparison, which illustrates the mathematical superiority of the new system for ambitious savers. The knowledge section also supports your planning with detailed analyses. (Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

A 30-year worked example: subsidised Altersvorsorgedepot versus an unsubsidised ETF savings plan

If you save €300 a month for your private pension, you invest €3,600 a year. In the new Altersvorsorgedepot, this makes optimal use of the full state allowance on the first €1,800 and secures the maximum annual Grundzulage of €540. The remaining €1,800 sits above the allowance threshold, but flows completely tax-free into your account, up to the statutory cap of €6,840 a year^[1]. While a conventional securities savings plan requires you to pay capital gains tax or the Vorabpauschale on dividends and capital gains every year, this tax burden falls away entirely in the subsidised account throughout the whole thirty-year accumulation phase, so gains grow tax-free.

This clear difference of several tens of thousands of euros arises mainly from compounding. Because the state allowance of €540 a year is reinvested directly, it generates returns of its own over 30 years. In addition, the capital that a normal ETF savings plan deducts each year for the Vorabpauschale stays inside the Altersvorsorgedepot and keeps working there undisturbed. This tax-deferral effect, together with avoiding upfront tax, substantially boosts the efficiency of your monthly contribution. Please note: these calculations are for demonstration purposes only and are non-binding. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. For a precise comparison tailored to your personal tax situation and individual needs, we recommend our after-tax comparison or our interactive subsidy calculator.

Deferred taxation and the payout phase: what to expect in retirement

When you draw on your accumulated wealth from the Altersvorsorgedepot in retirement, the principle of deferred taxation applies. While you benefit from substantial tax relief during your active career on a monthly contribution of €300 (€3,600 a year), tax only becomes due in the payout phase^[3]. For ambitious savers and high earners, this time shift is a major advantage: your tax rate in retirement is usually noticeably lower than your current top marginal rate. During the accumulation phase, your capital also stays untouched by capital gains tax. So the question of how you pay tax on gains during this time is quickly answered: your returns grow entirely tax-free.

The legislator provides that the regular payout phase can begin once you turn 65^[6]. From that point you have a high degree of flexibility. Instead of a rigid annuitisation, you can opt for a fixed-term drawdown plan that runs at least until your 85th birthday^[7]. What makes this model special: your remaining balance stays invested in the account throughout the payout phase and can keep growing via low-cost ETFs on global markets^[7]. Alternatively, the classic lifelong life annuity is available to you.

• Taxed at your personal income tax rate only when paid out in retirement, instead of immediate capital gains tax during the accumulation phase.
• Optional drawdown plans up to age 85 let your capital stay invested in the ETF market for ongoing compounding.
• A lump-sum payout of up to 30 percent at the start of the payout phase is possible without losing subsidy eligibility.

For a high earner who consistently invests €300 a month, this interplay substantially maximises long-term net return. Our knowledge section offers you deeper analysis on this. A well-founded after-tax comparison shows just how strongly deferring the tax burden affects your final capital. Please note: all calculations and projections shown are for illustration only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Your next steps: how to set up the €300 savings plan legally from 2027

Setting up a monthly savings plan of €300 (€3,600 a year) in the new Altersvorsorgedepot calls for a structured approach. With this amount, you draw on a large share of the tax cap for the Sonderausgabenabzug, which stands at up to €6,840 a year^[3]. If you want to set up your Altersvorsorgedepot, two equally valid, reliable routes are open to you from 2027. If you decide to go the digital route as a self-directed investor, you can open a suitable account directly with a neobroker or bank platform. A provider comparison helps you compare fee structures.

1. Establish your needs and tax effect: check in advance how large your individual tax relief will be if you aim for the maximum subsidy. Our subsidy calculator supports you with this calculation.
2. Set your contribution rate: once your account is open, set up a monthly standing order or direct debit of €300 to benefit from compounding through tax-free reinvestment.
3. Submit your allowance application: file the required standing allowance application (Dauerzulagenantrag) with your provider so state subsidy money flows automatically into your portfolio.

If you feel unsure about choosing the right ETFs, or about more complex tax questions, personal advice is an equally recommendable alternative. Our independent advice service puts you in touch, free of charge, with licensed financial experts who analyse your personal circumstances and develop a tailored retirement strategy for you. This way you can be sure your contribution rate is optimally aligned with your overall financial planning.

Whichever route you choose, whether self-directed through a neobroker or guided by an expert, acting early and consistently secures the compounding effect on your tax-subsidised contributions from the 2027 launch year. Our knowledge section offers in-depth guides and neutral information to reliably accompany you on every step of the way.

Legal notice: the mathematical calculations and tax framework presented in this article are for general information and illustration only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.