What payout options does the Altersvorsorgedepot offer?

Tilman Freyenhagen

Published on 14 June 2026 · Updated on 7 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

Entering the payout phase: when and how does drawdown start?

The payout phase of the new Altersvorsorgedepot usually starts once you turn 65, or when you actually begin drawing your statutory old-age pension^[1]. From that point, you can flexibly choose how you want to draw down your accumulated capital. As a saver approaching retirement, various routes are open to you for structuring your portfolio and shaping the transition into retirement optimally. To get a clear picture in advance of the legal and tax framework, use the knowledge section, which serves as a neutral guide.

The timing and legal requirements for starting drawdown

The legislator provides that subsidised retirement contracts may be drawn down at the earliest from your 65th birthday, in order to secure the tax benefits. An exception applies if you're already drawing a statutory old-age pension or an equivalent civil-service pension^[1]. Deferring the start is possible until you turn 70 at the latest, and often worthwhile, to give the capital more time for tax-free compound-interest effects in the account.^[6] Because precise planning has a substantial effect on your later tax burden, structured preparation is advisable.

• Earliest possible start: permitted, as a rule, once you turn 65.
• Tied to your pension: early drawdown is only possible if you're already drawing a statutory old-age pension or a civil-service pension.
• Latest possible start: the start of the payout phase can be deferred until you turn 70 at the latest.
• Right to choose your provider: you can switch provider at the start of the payout phase to take advantage of better terms.

The payout routes range from the lifelong Leibrente, through a flexible drawdown plan, to a partial payout of up to 30 percent of the capital at the start of the payout phase^[1]. Each option has specific advantages and drawbacks in terms of your financial flexibility and protection against longevity risk. For an individual assessment of your personal subsidy situation, the subsidy calculator is available to you. Because the tax treatment in the drawdown phase is complex, seeking advice can also be worthwhile, to avoid poor decisions shortly before retirement.

The options at a glance: lifelong Leibrente versus flexible drawdown plan

The Altersvorsorgedepot offers two basic payout options in retirement: the lifelong Leibrente and the flexible drawdown plan running to age 85. While the old Riester contract made a lifelong Leibrente compulsory, from 2027 you can also draw your savings via a drawdown plan^[2]. This increase in flexibility affects not only your liquidity but also your tax burden in retirement. For a precise calculation of your individual entitlements, the subsidy calculator is available to you.

The lifelong Leibrente offers maximum protection against so-called longevity risk. No matter how old you get, you receive a monthly payout. Because this form is usually provided through an insurance company, additional administrative costs apply, and the remaining capital can only be inherited to a limited extent on death.

The flexible drawdown plan, by contrast, leaves the capital directly in the account during the drawdown phase. That means your remaining assets stay invested and can continue to generate returns. One drawback of this model is that, after you turn 85, there's no automatic protection left, and you have to provide for yourself.

• Lifelong Leibrente: guarantees a monthly payment for life and protects against the risk of running out of capital, but carries higher insurance costs.
• Flexible drawdown plan: enables monthly withdrawals up to age 85 while your capital stays invested, with full inheritability, but offers no lifelong payment guarantee.
• Combination models: allow a time-limited drawdown via a payout plan, followed by a partial transition into a Leibrente to provide security in very old age.

Weighing up these options carefully matters especially for savers approaching retirement, since the start of retirement is imminent. You can familiarise yourself with further details via the knowledge section. Because the tax and mathematical aspects are complex, personal advice is recommended before making a final decision, which you can request through the Vorsorgedepot-Lotse portal.

Option 1: the lifelong Leibrente for maximum security

The classic lifelong Leibrente is the tried-and-tested foundation if maximum predictability in retirement is your top priority. Under this established option, the capital you've saved in your Altersvorsorgedepot is converted, at the start of the payout phase — which can begin flexibly from age 65 — into a lifelong monthly pension payment^[1]. This option effectively protects you against so-called longevity risk, meaning the legitimate worry of fully using up the wealth you painstakingly saved in very old age^[3]. Because account providers such as neobrokers are not legally permitted to issue pension guarantees themselves, they work with state-licensed life insurance companies for this route, which take over the remaining balance and reliably guarantee the monthly pension for the rest of your life.

• Guaranteed payment for life: no matter how old you actually get, you receive stable, predictable monthly support for your living costs.
• Risk transfer to the insurer: from the start of retirement, the remaining investment risk on the equity markets and your personal longevity risk pass entirely to the chosen insurance company.
• Limited flexibility: once the capital is finally transferred into a Leibrente, the assets are, as a rule, permanently tied up. They can no longer be withdrawn flexibly in larger sums or simply inherited.
• Option of a partial capital payout: at the start of the payout phase, you can have up to 30 percent of your accumulated account balance paid out as a taxable lump sum, while the remainder is used for the annuity.

Although the Leibrente offers a high degree of financial security, savers approaching retirement should carefully weigh up the trade-offs involved. By transferring your capital permanently to an insurance company, you lose the chance to keep your capital working with strong return potential in ETFs on the global capital markets during retirement. The new law reforming private retirement provision deliberately breaks with the old, rigid Riester requirement of a lifelong annuity^[1]. You now have the freedom to choose more flexible drawdown options. For a well-founded decision, it's worth using the knowledge section or taking personal advice through the independent advice service from Vorsorgedepot-Lotse, to analyse your individual tax burden and pension gap precisely.

Option 2: the flexible drawdown plan up to age 85

The drawdown plan is one of the most flexible payout options for the Altersvorsorgedepot. Unlike classic pension insurance, your capital stays invested in the account throughout the entire payout phase. As a result, you continue to benefit from performance on the capital markets even in retirement^[1]. A decisive advantage of the new reform: a drawdown plan, which must run at least until you turn 85, is now permitted even without the previously mandatory partial annuitisation from age 85^[5]. This means you can manage your savings entirely through the account provider, without being forced into a usually expensive pension insurance policy.

Under this option, the monthly payout amount is calculated mathematically so that the remaining account balance is drawn down evenly or dynamically by the time you turn 85. Because the remaining capital stays invested in ETFs or funds, the payout amount can adjust depending on market performance. Compared with a rigid Leibrente, this gives you substantial return potential, but it also requires a certain risk tolerance in old age^[1]. Should you die before turning 85, the remaining account assets are, as a rule, fully inheritable by your relatives, which is a further key advantage over classic insurance policies.

For those approaching retirement, the question then becomes whether they prefer the guaranteed security of a lifelong Leibrente or the return potential and flexibility of the drawdown plan. Because the optimal choice depends on your individual health, other sources of income and your tax situation, you should examine your options early on. Our subsidy calculator helps you play through different scenarios visually. For a tailored, personal payout strategy, our independent advice service is also on hand to connect you with qualified, product-neutral experts.

The partial payout at the start: up to 30 percent in one go

For many people approaching retirement, the transition into retirement is tied to long-held plans, such as paying off the remaining mortgage on their property, a big trip, or supporting their children. The Altersvorsorgedepot, newly regulated under the private pension reform from 2027, gives you exactly the flexibility needed for that. It's set out in law that, at the start of the payout phase, you can take a one-off partial capital payout of up to 30 percent of your accumulated assets without jeopardising the subsidy^[1]. This option creates valuable room to manoeuvre, letting you split your capital according to your needs.

Weighing opportunities against financial consequences

• Immediate liquidity: with up to 30 percent of the account value, you can immediately make larger one-off investments or pay down financial liabilities at the start of retirement.
• Reduced follow-on payments: because the assets remaining in the account are smaller, the subsequent monthly instalments — whether as a lifelong pension or a flexible drawdown plan — are correspondingly lower.
• Tax burden: the partial payout is subject to full deferred taxation in the year it's received. Because of Germany's progressive income tax scale, this can temporarily push your tax burden up significantly.

Whether this partial payout is advantageous for your personal situation depends heavily on your other income and on your health and financial priorities. If, for example, you start retirement in a year when your taxable income is already lower, the progressive effect can be softened. A precise look at the numbers is essential here. Use our subsidy calculator to work through different scenarios and simulate the long-term effect on your monthly payouts transparently. For a comprehensive analysis and a payout strategy tailored to your personal tax and retirement situation, we also recommend our independent advice service.

Inheritability on death: what happens to the remaining assets?

A key advantage of the new Altersvorsorgedepot over the classic Riester-Rente lies in the flexible inheritability of the remaining assets. If a saver dies during the accumulation or payout phase, the remaining account balance generally passes to their heirs^[1]. For savers approaching retirement, this offers considerable financial reassurance, because in that event the capital they painstakingly built up doesn't fall into the pool of insured members but can stay within their own family. An important aspect here is protection against an unforeseen tax burden or the loss of the state subsidy.

Transferring to a spouse

Especially advantageous is the statutory special rule for spouses and registered civil partners. If your partner transfers the remaining balance directly into their own eligible Altersvorsorgedepot, this process is, as a rule, tax-neutral and involves no obligation to repay the state allowances^[1]. The capital continues working seamlessly for your partner's retirement provision. Other heirs, by contrast, often have to pay tax on the inherited capital, with the allowances and tax benefits having to be repaid proportionally under certain conditions, unless the capital is transferred into their own retirement contract.

To plan the right protection for your family and analyse the tax details for your personal situation precisely, it's worth taking a structured look at our knowledge section. That way, you ensure your retirement provision offers lasting financial security not just for you, but for your family too.

Tax treatment of the payout: the principle of deferred taxation

When you draw your capital out of the Altersvorsorgedepot, the principle of deferred taxation applies. This means that, during the accumulation phase, you pay no Abgeltungsteuer on dividends or realised price gains, and you can deduct your contributions for tax purposes. Only in retirement, when you withdraw the capital, are the payouts subject to your personal income tax rate under § 22 Nr. 5 EStG^[1]. This is advantageous for many savers, since the personal tax rate in retirement is usually significantly below the tax rate during active working life.

For savers approaching retirement, this difference is of central importance. Because taxable income generally falls once you retire, tax progression eases too. As a result, your personal tax rate in old age is often noticeably lower than the 25 percent Abgeltungsteuer plus solidarity surcharge. By deliberately deferring taxation into the pension phase, you can therefore benefit from substantial net savings. What's more, your accumulated capital stays invested throughout the entire term undiminished by tax, which considerably strengthens the compound-interest effect.

To find out whether this tax effect pays off for your personal situation, it's worth taking a look at our subsidy calculator. Because the tax treatment and the choice of the optimal payout option can be highly complex on a case-by-case basis, we also recommend personal advice. Through our independent advice service, you'll find qualified experts who work with you to develop the optimal tax-efficient payout strategy for your retirement.

Note: the tax comparisons are for purely illustrative purposes and do not constitute tax or financial advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Switching provider and advice before retirement: how to secure the best terms

The transition from your working life into retirement requires a precise, forward-looking alignment of your personal finances. A key, legally anchored advantage of the Altersvorsorgedepot, introduced from 2027, is the right to switch provider flexibly at the start of the payout phase^[1]. That means you're by no means tied to the institution where you built up your capital over the years. This statutory right to switch protects you from high fees and ensures providers have to offer attractive terms in competition for customers nearing retirement. Switching in good time can secure substantial cost advantages, since administrative fees in the payout phase significantly affect the net return on your payouts.

• Administrative costs: ongoing account fees and transaction costs that erode your remaining capital
• Payout options: the flexibility to adjust monthly drawdown plans to changed life circumstances
• Access to capital: options for a partial payout at the start of retirement without tax drawbacks
• Guarantees: the terms for any lifelong protection via an attached Leibrente

A systematic provider comparison helps you set out service providers' terms transparently, side by side, and find the right model for your individual needs. On our neutral knowledge section, you'll find in-depth analyses and easy-to-follow guides on all the tax and legal aspects of the payout phase. Because the final decision on your payout form has far-reaching consequences for your financial security in old age, you shouldn't rush this step. If you'd prefer personal guidance from qualified experts, the independent advice service from Vorsorgedepot-Lotse connects you directly with licensed professionals. That way, you secure a well-founded basis for your retirement decisions.