Here we answer the most important questions about retirement savings accounts.
Who can open an AVD?
Basically, all persons subject to unlimited tax liability in Germany: employees, self-employed persons, freelancers, civil servants and pensioners until the start of the pension phase.
From what age can one open an AVD (Agency for Digitalization)?
Starting January 1, 2027. Preliminary registrations may be possible beforehand.
Can I transfer my old Riester product?
Yes, from 2027 onwards, existing Riester contracts can be transferred to an AVD free of charge.
What is the maximum amount of government funding?
Basic allowance: max. €540/year. Child allowance: max. €300/child/year. Career starter bonus: one-off payment of €200.
What happens if I pause my contributions?
Contributions can be paused at any time. Funding is calculated based on actual payments.
How are pension payouts taxed?
Payouts are taxed at the personal income tax rate in retirement (deferred taxation).
Is there a capital guarantee?
No — unlike the Riester pension, there is no mandatory contribution guarantee. Investors can choose between a 0%, 80%, or 100% guarantee level.
What costs are involved?
For the standard account, the maximum fee is 1.0% per annum on the assets under management.