Altersvorsorgedepot and inflation: what's left in real terms?

Tilman Freyenhagen

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

The Altersvorsorgedepot in the inflation check: nominal vs. real

Inflation reduces the purchasing power of your Altersvorsorgedepot balance, which is why only the real return after deducting the inflation rate matters for long-term wealth building. The new Altersvorsorgedepot offers a decisive advantage here over classic guarantee products: by doing without rigid contribution guarantees, it allows a 100 percent equity allocation in real assets such as ETFs, which tend to grow with inflation over the long term and protect your purchasing power. Anyone planning for retirement should therefore always calculate in real purchasing power, not just look at the nominal account balance.

A look at German economic history shows just how drastic the long-term effect of gradual currency devaluation is: between 1960 and 2025, the average inflation rate in Germany was 2.8 percent per year^[1]. An article that cost 100 euros in 1960 therefore cost 579.96 euros by early 2026^[1]. Without a profitable investment, your savings lose most of their value over a typical working life of 30 to 40 years. Classic savings accounts or life insurance policies with nominal interest can rarely offset this loss, as their return after tax and inflation is often negative. Comprehensive background reports and in-depth articles on this topic are available in the knowledge section.

For you as a self-directed investor, this means: realistic retirement planning must not be dazzled by high nominal end sums. If you want to know how state subsidies and different interest-rate scenarios actually affect your wealth in real terms, the interactive subsidy calculator can help. With this tool you can calculate your expected entitlements and compare the cost impact directly. Please note: all calculations and scenarios shown are for illustration only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The mathematics of losing purchasing power: a worked example over 30 years

Anyone saving for retirement is right to ask what's actually left of their savings, in real terms, after inflation. The answer: without a high-return investment, the purchasing power of your capital shrinks by almost half over 30 years, which is why a nominal contribution guarantee leads to real losses. The Altersvorsorgedepot solves this problem by doing without rigid guarantees and enabling a high-return equity allocation to protect purchasing power over the long term. At a moderate but steady inflation rate averaging 2 percent per year, the actual value of your money shrinks dramatically, as historical price trends show.

This loss of purchasing power can be calculated precisely using mathematical models, of the kind also used on platforms such as zinsen-berechnen.de^[2]. After 30 years, only around 55,207 euros of real purchasing power remains from your nominal savings of 100,000 euros. You therefore lose almost half your real wealth if your capital doesn't grow at least in line with the inflation rate. A purely nominal view ignores this risk entirely, which is why paying in without a high-return investment leads straight into the retirement-provision trap.

This is where the new Altersvorsorgedepot comes in: unlike classic Riester guarantee products, which often only protect the nominal contributions paid in and destroy real wealth through low interest, the Altersvorsorgedepot allows a 100 percent equity allocation. In the knowledge section, we show that broadly diversified real assets such as equity ETFs have historically achieved returns that clearly outpace inflation. With our interactive subsidy calculator, you can simulate the effect of state allowances and tax subsidies to calculate your actual real savings rate precisely. Please note: all mathematical model calculations are for illustration only and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The guaranteed-interest effect: why classic Riester pensions lose real value

The statutory contribution guarantee was meant as a safeguard, but during the long period of low interest rates it turned into a return-blocker for classic Riester-Rente contracts. Because providers had to guarantee the contributions paid in at all times, they could barely invest in high-return real assets such as equities. Instead, most of the capital flowed into low-yield government bonds. The nominal value is preserved, but gradual inflation erodes the capital in real terms over the decades. Anyone providing for retirement today needs to bear in mind: at average inflation, money loses substantial purchasing power over a 30-year saving period, which means guaranteed products without sufficient return are a real loss-making deal.

With the new Altersvorsorgedepot, the federal government is making a fundamental paradigm shift in private retirement provision^[3]. By deliberately doing without rigid contribution guarantees, self-directed savers can invest 100 percent of the subsidised capital in broadly diversified equity ETFs. Real assets tend to grow with inflation over the long term, offering historically proven protection against the loss of purchasing power. To calculate the exact difference for your personal situation, the subsidy calculator is available to you, transparently simulating both the state allowances and the real, inflation-adjusted performance.

Anyone who wants to be genuinely wealthy in retirement over the long term has to let go of the illusion of nominal security. Security in the sense of a guaranteed interest rate often means a guaranteed real loss when inflation persists. The Altersvorsorgedepot opens up a way to link state subsidies directly to the long-term return strength of global equity markets, effectively securing your own purchasing power for retirement. Detailed background reports and analyses of the legal framework are available in our Altersvorsorgedepot guides. This simplified, mathematical example is for illustration only and does not constitute investment advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Real assets beat monetary assets: the protective effect of equities and ETFs

Anyone saving for retirement over the long term faces an invisible opponent: inflation. Classic, guaranteed pension products secure nominal values, but in real terms they often mean a guaranteed loss of purchasing power. The new Altersvorsorgedepot solves this problem at its root by doing without rigid contribution guarantees and allowing an equity allocation of up to 100 percent. This lets you invest your capital directly in real assets. Unlike pure savings products, equities are productive capital that can grow with inflation, as companies pass rising producer prices on to the market. In our calculation methodology on the knowledge section, we assume an inflation default of 2 percent up to a historically realised 3 percent as standard, to realistically simulate your real purchasing power in retirement.

Historical data confirms the long-term superiority of real assets during inflationary periods. Long-term analyses over recent decades show that broadly diversified equity portfolios, despite market cycles, achieve returns that clearly exceed the inflation rate. While monetary assets lose value when inflation persists, ETFs let you directly participate in the value creation of the global economy. If you want to calculate your personal retirement strategy and the impact of inflation on your planned retirement capital, our subsidy calculator helps you work out the real value of your future wealth transparently. Please note: all calculations and historical trends shown are for illustration only and do not constitute financial or investment advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Historical evidence: MSCI World real return in long-term comparison

To understand the long-term impact of inflation on your savings, it's worth looking at historical data from the global capital markets. Anyone who invested broadly in the MSCI World equity index in the past achieved an average nominal return of around 7.7 percent per year over long periods^[4]. But this nominal figure is misleading, as it ignores the gradual loss of purchasing power. Once you deduct the average historical inflation rate, a lower real return remains, though one still well above classic interest-bearing products. This real return strength is the actual engine of your long-term wealth building. This is exactly where the new Altersvorsorgedepot comes in, using the absence of rigid contribution guarantees to enable a 100 percent equity allocation, making these real returns accessible to you.

Note: the figures shown in the table are for illustration purposes only and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. Past performance is not a reliable indicator of future results.

A long investment horizon is the decisive factor for self-directed investors in offsetting short-term market fluctuations and mathematically reducing the risk of loss toward zero. The knowledge section shows that historically, every 15-year investment period in the MSCI World produced a positive return, even after severe crises^[5]. With the subsidy calculator provided on our platform, you can transparently simulate the long-term impact of inflation on your individual retirement capital and plan your savings rate realistically.

The savings phase in the AVD: calculating real savings rates correctly

Nominal projections for private retirement provision are often misleading, since inflation substantially erodes the actual purchasing power of your capital over the decades^[6]. In real terms, only what remains after deducting the inflation rate counts as real purchasing power. The new Altersvorsorgedepot solves this problem of gradual currency devaluation at its root: by fully doing without inflexible contribution guarantees, self-directed savers can invest an equity allocation of up to 100 percent in globally diversified ETFs. Only this long-term, real return strength of the equity market offers reliable protection against inflation. For your financial planning, this means: calculate in real terms from the outset, so you can set your savings rate to match your needs and stay future-proof from the start.

1. Step 1: calculate your real pension need. First determine your personal pension gap. To do this, use today's purchasing power as the benchmark for your desired standard of living in retirement, then deduct the statutory and private pension benefits you expect to receive.
2. Step 2: use annual escalation. To actively counter the continuous loss of purchasing power during the decades-long savings phase, you should raise your savings rate every year by a fixed percentage, such as two or three percent.
3. Step 3: run precise calculations. Use mathematically sound calculation models that don't just show nominal performance, but deduct the assumed inflation rate directly from the annual return to forecast the actual net result.

For this mathematically precise calculation, the interactive tool subsidy calculator is available on our platform. The calculations are based on the proven financial-mathematical algorithms of zinsen-berechnen.de, ensuring a transparent, source-based simulation. You can use it to run through different scenarios to see how inflation affects your subsidised final capital. For deeper analysis of investment strategies and tax benefits, our knowledge section offers well-founded guides. Please note that all model calculations are purely illustrative (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

The drawdown phase: protecting purchasing power in retirement

In the drawdown phase, it's not the nominal pension amount that determines your standard of living in retirement, but real purchasing power. The new Altersvorsorgedepot solves the problem of gradual loss of purchasing power by doing without rigid contribution guarantees and enabling flexible investment. Instead of a classic, usually rigid annuitisation with low interest, self-directed savers can leave the capital in a flexible drawdown plan and continue to benefit from the return potential of the equity market^[7]. This approach helps offset inflation over the long term, since real assets such as equities have historically offered real protection.

This purely mathematical model illustrates how strongly continuous currency devaluation of 2% per year reduces the real value of a fixed pension over two decades. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. To offset this loss of purchasing power, the Altersvorsorgedepot offers substantial advantages over traditional pension insurance. Since the assets can remain invested in equity ETFs even during the payout phase, the remaining portfolio capital ideally continues to grow with the average market return and cushions inflation. Classic insurance products, by contrast, often carry a high guaranteed but low-return pension component that cannot offset the real loss in value.

While classic insurance contracts carry high upfront and distribution costs and are extremely inflexible, with the Altersvorsorgedepot you keep control over your drawdown strategy. You can adjust payouts flexibly or pass on the remaining balance as an inheritance^[7]. The choice between maximum protection against longevity risk and strong real returns is often the last hurdle for self-directed investors before switching. For a precise calculation of your personal savings goals, we recommend a look at our source-based subsidy calculator or a deeper look into our neutral knowledge section.

Conclusion and recommendations: how to protect your purchasing power

The new Altersvorsorgedepot represents a fundamental paradigm shift in state-subsidised private retirement provision in Germany. Since the new reform concept does without the previous rigid contribution guarantees from 2027 and enables a pure equity allocation of up to 100 percent, you, as a self-directed investor, get an effective and flexible instrument for the first time to counter gradual inflation effectively over the long term^[3]. While classic Riester products often suffered a real loss of purchasing power due to low interest and high upfront costs, the high-return investment in real assets such as equity ETFs gives you the chance of genuine, inflation-adjusted wealth growth for your retirement.

• Analyse existing contracts: check the specific switching terms of your existing Riester-Rente contracts carefully. Transferring your accumulated capital into the new, significantly higher-return Depot has been enshrined in law since 1 January 2027 and offers an excellent opportunity to protect the real value of your existing savings from future loss of purchasing power.
• Calculate the subsidy precisely: determine your personal state allowance amount and the specific effect on your real savings rate. Use the digital, source-based subsidy calculator to precisely quantify your individual financial benefit and optimise your savings rate.
• Choose the right provider: successful long-term wealth building requires extremely low product fees. Use our provider comparison to filter different neobrokers and account solutions by objective, hard criteria and open the account best suited to you directly.

To make an informed decision and read further regulatory details on the tax benefits or the Riester reform, you can access in-depth, source-backed analyses via our knowledge section. Start your strategic planning in good time, so you're in the best possible position once the product officially launches in 2027. Please note our important legal notice: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a of the Kreditwesengesetz (KWG, the German Banking Act).