Example calculation for a family with 2 children: allowances & final capital

Tilman Freyenhagen

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

The fresh start from 2027: the new Altersvorsorgedepot for families

From 1 January 2027, families with two children can highly efficiently optimise their private pension provision by combining the Grundzulage and Kinderzulages in the new Altersvorsorgedepot. Under the new subsidy model, state contributions of up to 540 euros in Grundzulage and up to 300 euros per child flow directly into high-return ETFs, massively reducing the own contribution required. Whether the new concept pays off for you can be answered with a broad yes: the Altersvorsorgedepot for families clearly beats the old Riester-Rente on returns, since the requirement for expensive contribution guarantees falls away.

The state subsidy consists of the account holder's personal Grundzulage and the allowance for the children. To receive the full subsidy, you as the saver have to pay in a certain amount yourself. The Kinderzulage is granted at a 1:1 ratio to your own payments, up to a limit of 300 euros per child^[1]. Important for married couples: by default, the Kinderzulage goes to whichever parent also receives Kindergeld (child benefit). This is usually the mother, though switching the allowance recipient to the father by mutual agreement is straightforward.

• Grundzulage: up to 540 euros a year, calculated using a progressive tiered model (50 percent on the first 360 euros of own contribution, then 25 percent on further payments up to 1,800 euros).
• Kinderzulage: up to 300 euros per child per year, so 600 euros in total for two children, credited directly to the eligible parent's Altersvorsorgedepot.
• Total subsidy: a maximum annual allowance of 1,140 euros with an optimal own contribution.

This extremely high subsidy share creates a strong lever for the capital you commit. Because the allowances flow directly into the ETFs you've chosen, your family benefits from the compound-interest effect on the entire savings total. With the subsidy calculator, you can transparently work through the exact allowance distribution and its effect on your final capital for different scenarios. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The subsidy components: the Grundzulage and Kinderzulage explained simply

For families with two children, the new Altersvorsorgedepot offers an excellent opportunity from 2027 to make optimal use of the state subsidy. Combining a personal Grundzulage with the allowances for both children noticeably lowers the required own contribution, while the subsidised capital in the account works entirely for you. To receive any subsidy at all, you only need to pay in the statutory minimum contribution of 120 euros a year.

The state Grundzulage amounts to a maximum of 540 euros per person per year. The calculation follows a two-tier BMF model: on the first 360 euros you pay in, you receive a subsidy of 50 percent (so up to 180 euros). For every further euro up to an annual payment of 1,800 euros, 25 percent flows into your account as a state contribution (up to a maximum of 360 euros).

On top of that, the Kinderzulage gives families a considerable lever^[1]. For every child entitled to Kindergeld, the state pays up to 300 euros a year directly into the Altersvorsorgedepot. This subsidy is credited at a 1:1 ratio against your own contributions, so for two children you can receive up to 600 euros in additional allowances in total. By default this allowance is assigned to the parent who also receives Kindergeld, but it can be transferred flexibly on request.

• Grundzulage: up to 540 euros a year through the progressive tiered model, with an own contribution of 1,800 euros.
• Kinderzulage: up to 300 euros per child per year, at a 1:1 ratio, given a matching own contribution.
• Minimum contribution: an own contribution of at least 120 euros a year is required to receive any subsidy at all.

Please note that all calculations and mathematical projections in this article are purely illustrative and do not constitute any binding commitment. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Allocating the Kinderzulage: which parent benefits?

For families with two children, the new Altersvorsorgedepot is a highly effective way from 2027 to build significant wealth with state support. Besides the Grundzulage of up to 540 euros, the state's family support secures a considerable lever for your annual savings rate. When it comes to the practical details, though, married couples face a key organisational question: which parent gets the Kinderzulage credited to their personal account? The statutory allocation follows clear rules directly tied to who receives the state Kindergeld^[1].

Lawmakers stipulate that the allowance for a child generally belongs to whichever parent also receives the Kindergeld payment. For married parents living together, the subsidy is assigned to the mother by default. If you'd rather direct the state Kinderzulage to the father's Altersvorsorgedepot instead, that's straightforward on a joint application by the parents^[1]. This freedom of choice lets you direct the allowances specifically to where they have the greatest long-term compound-interest effect, or where they reduce own contributions most effectively.

• Default allocation for married couples: the allowance is automatically credited to the mother's account, unless a different application is filed.
• Transfer by application: parents can jointly apply for the allowance of up to 300 euros a year per child to flow into the father's account.
• No even split: splitting or dividing a single Kinderzulage between both parents is legally excluded.
• Flexibility with multiple children: with two children, it's possible to assign one allowance to the mother and the other to the father.

To plan the state subsidy precisely for your personal family situation, we recommend detailed modelling. Using our subsidy calculator, you can work through different scenarios for splitting contributions and allocating allowances. This makes it straightforward to find the optimal interplay between your own contributions and the state's bonus payments. If you're unsure about the optimal split, our independent advice service also gives you a path to personal, neutral expert advice.

Example calculation: how a family of four optimises the subsidy

If you're married parents wanting to get the most out of your state subsidy, the new Altersvorsorgedepot offers an unprecedented lever. By intelligently splitting contributions across two separate contracts, you can maximise the state subsidy while lowering your own net outlay. In our concrete calculation example, a married couple pays in a combined 2,400 euros a year (that is, 1,200 euros per partner) into two separate ETF portfolios. This structure not only makes optimal use of the maximum Grundzulage, but also integrates the full Kinderzulage into long-term wealth-building. With our subsidy calculator tool, you can work out the exact Grundzulage and Kinderzulage for your personal family situation quickly and on a source-based footing.

The allocation of the allowances is clearly set out in law: the state Kinderzulage of 300 euros per child flows directly into the account of the parent who also receives the statutory Kindergeld^[1]. In most cases this is the mother by default, but the couple can apply for a mutually agreed transfer to the father's account. Because the subsidy in the Altersvorsorgedepot is invested directly in the chosen ETFs, your whole family benefits over the decades from the compound-interest effect on these state-gifted allowances. An unsubsidised ETF savings plan simply cannot mathematically match this guaranteed lever at the start of the accumulation phase.

Note: this example calculation is for information purposes only and represents an illustrative calculation example. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Long-term wealth-building: final capital and compound interest after 20 years

A concrete, source-based model calculation for a married couple with two children shows just how strongly the combination of own contributions and state allowances adds up over the years. If both parents each save into their own Altersvorsorgedepot and together contribute 2,400 euros a year, the state pays out an additional 1,380 euros a year via the Grundzulage and Kinderzulages^[2]. The total annual savings amount thus grows to 3,780 euros, without putting any further strain on the family budget. Thanks to this massive lever, significantly more capital flows into the investment from the outset than the family has to raise itself. This pays off especially well when the capital can work in the equity markets over the decades.

This BMF-compliant example calculation illustrates the enormous dynamics of the compound-interest effect. While the family pays in a total of 48,000 euros out of their own pocket over two decades, the account grows to around 139,000 euros thanks to state support of 27,600 euros and an assumed return of 6 percent a year. For this calculation to work out in reality, choosing the right asset class plays a decisive role. For long-term success with the Altersvorsorgedepot for families, a broadly diversified, low-cost global ETF is recommended. Because the new Altersvorsorgedepot dispenses with the classic contribution guarantees, the allowances can flow entirely into high-return equity markets instead of languishing in low-return guarantee reserves.

Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. Actual performance may turn out higher or lower and cannot be predicted with certainty.

Tax advantages in detail: the Sonderausgabenabzug and tax deferral

If you use the new Altersvorsorgedepot for families, you benefit not only from direct allowances but also from highly efficient tax support. The Federal Ministry of Finance provides that you can claim own contributions of up to a maximum of 1,800 euros per person per year, plus the state allowances you're entitled to, as Sonderausgaben (special expenses) for tax purposes^[1]. For a married couple with two children, this means tax recognition of up to 3,600 euros in own contributions plus allowances, which noticeably reduces the annual income tax burden.

• Sonderausgabenabzug (special-expenses deduction): up to 1,800 euros of own contribution per person is deductible each year, giving married couples a combined tax allowance of 3,600 euros plus allowances.
• Compound-interest effect from tax deferral: gains, dividends and interest are reinvested gross throughout the entire decades-long accumulation phase. No annual capital gains tax applies.
• Deferred taxation: only in the payout phase in old age are the returns and contribution shares taxed. Because your personal tax rate is usually lower in retirement than during your working life, a significant net savings component results.

A decisive lever for families is the so-called Günstigerprüfung (the tax office's automatic best-outcome comparison) run by the tax office. This automatic tax calculation checks whether the direct allowance subsidy is more advantageous for your family, or the tax saving via the Sonderausgabenabzug. If the tax advantage is greater than the sum of the Grundzulage and Kinderzulages, you're credited with the difference as part of your tax assessment. To fine-tune these effects precisely to your personal income situation, our subsidy calculator helps by comparing both subsidy routes transparently.

Especially for families with two children, the interplay of allowances and tax savings is an unbeatable return booster. While the Kinderzulages give you a substantial direct contribution to your accounts, the tax deferral cushions any tax deductions throughout the entire term. This lets your capital grow undisturbed in the ETF account. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Comparison: Altersvorsorgedepot versus an unsubsidised ETF savings plan

Anyone saving privately for old age faces an important choice from 2027: should the money flow into a subsidised Altersvorsorgedepot or into a classic, unsubsidised ETF savings plan? For married couples with two children, the state subsidy shifts the economics massively. While with a conventional savings plan you have to raise the entire savings rate from net income, the state's allowance structure drastically reduces the own contribution you need for the Altersvorsorgedepot - for the same or a higher investment volume^[3]. This considerably boosts the return on equity of your retirement provision.

The allowance lever in direct comparison

The biggest lever for families is combining different state allowances. To receive the maximum Grundzulage of 540 euros, an annual own contribution of 1,800 euros is required. If you have two children, an annual Kinderzulage of up to 300 euros each is added on top^[3]. These allowances flow directly into your account and work for you in the ETF portfolio through the compound-interest effect.

• Altersvorsorgedepot (subsidised): say you pay in an own contribution of 1,800 euros a year. The state adds 540 euros in Grundzulage and, for two children, a total of 600 euros in Kinderzulage. So 2,940 euros work in the account each year, even though you only put in 1,800 euros yourself.
• Classic ETF savings plan (unsubsidised): to invest 2,940 euros a year, you'd have to save that amount entirely out of your net income. There are no state contributions here.
• Flexibility and withdrawal: while the subsidised account is bound by statutory rules for the later payout, the unrestricted savings plan stays flexibly available at any time - but offers no subsidy.

This comparison makes clear that the Altersvorsorgedepot for families delivers an unprecedented lever. Over the decades, this annual allowance bonus of 1,140 euros produces significantly higher final capital, without straining your family budget^[3]. A well-founded comparison for families helps determine the optimal path. Note: all calculations are for illustration and are not investment advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

The path to the optimal account: independent advice or self-directed choice

Securing the maximum subsidy from the Grundzulage and Kinderzulage in the new Altersvorsorgedepot requires precise execution from 2027 onward^[1]. The first fundamental decision for families is therefore whether you'd rather set up your state-subsidised retirement provision via a mobile app or advice. Both approaches are equally valid, respectable ways to put your family's retirement provision on a solid footing. We support you in this with the right guidance.

An individual calculation as the first step

For a married couple with two children, the new system means considerable relief, since the state allowances flow directly into the long-term ETF investment^[4]. This noticeably reduces the necessary monthly own contribution, while the invested capital benefits from the compound-interest effect. To make the best possible use of this dynamic, it's worth taking a close look at how contracts are distributed within the family, since both parents can each run their own accounts and apply for allowances. We're glad to help you make the most of this potential.

To find out in advance how much your personal own contribution will be once all allowances are taken into account, our subsidy calculator can help. With this digital tool, families with two children can work out their likely final capital and the optimal subsidy step by step. Please note that all calculations and projections are purely illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

• Self-directed savers: if you want to manage your finances independently, our provider comparison is available to you. It shows you whether a neobroker or a bank offers the best terms for your investment strategy.
• Those seeking advice: if you'd like personal support splitting the allowances or with tax questions, our independent advice service is the right path. We connect you with licensed, independent experts for tailored retirement planning.