Saving for retirement and the retirement account

Sign up for the waiting list for our retirement account (German: Altersvorsorgedepot) and be among the first to get access as well as the latest information.

Pension reform 2024

Retirement account as a state-subsidised private pension plan

A fundamental reform of subsidised private pension provision is intended to increase the distribution, efficiency and attractiveness of private pension provision and offer better conditions compared to current options. The corresponding law is expected to be passed by the end of 2024.

There are good reasons in favour of the reform:

	Demographic change: The proportion of older people in the population is increasing, which is putting pressure on the existing state pension system.
	Low interest rates: Traditional savings models often no longer offer the required returns.
	Transparency and flexibility: The need for transparent and flexible pension products is growing.

Part of this reform is to introduce a digital retirement account, which could take over some elements of the existing systems, e.g. Riester or Rürup. This is a special securities account that can be used for private pension provision and is intended to enable tax-free savings plans on securities, e.g. ETFs, funds, shares and bonds.

The envisaged retirement provision portfolio would offer these advantages:

	Investments with higher potential returns through investments in stocks or ETFs
	Improved tax incentives
	More flexible withdrawal options

Comparison with existing private pension schemes

The planned retirement account is intended to be more attractive and flexible than Riester and Rürup.

The main differences at a glance

			Proposal according to draft law
	Riester	Rürup	Retirement provision portfolio*
State allowances
Tax incentives
Subsequent taxation on withdrawals
Payout before retirement start			With loss of state allowance and tax incentives
One-time payout with retirement start
Payout as monthly pension after retirement start
Autonomous securities investments			Either select products yourself or have them managed
Guaranteed capital	Obligatory	Not obligatory	Not obligatory
Potential yields	Low to medium	Low to medium	Medium to high

*The table shows current data on the envisaged target status of the reform as at October 2024.

Implementation at Scalable Capital

We are following developments closely and aim to offer an attractive product for the retirement account as soon as the relevant reform has been passed.

According to current statements, the reform is due to come into force in January 2026. We are planning the implementation of our offer accordingly. Sign up to our waiting list now to stay informed about the latest developments and to be among the first to get access to our retirement account.

Understanding retirement provision and the pension system

In addition to the state pension, there are alternatives to protect yourself from poverty in old age. We explain how everything works together and what constitutes good retirement planning.

Poverty in old age

According to the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth, one in five people over the age of 80 in Germany were affected by poverty in 2021. For women, the proportion was even nine percentage points higher than for men.

A number of factors come together to prevent you from slipping into poverty in old age. In our finance blog, we describe what these are and the seven reasons why you should start saving for your retirement now.

The three pillars of retirement provision

	State pension = Basis of the retirement pension in Germany
	Workplace pension schemes are offered by employers and subsidised by the state as additional security for retirement.
	Private pension provision: Pension insurance Endowment insurance Home financing Particularly important if there is no workplace pension scheme or for those self-employed who do not pay into the state pension scheme.

	It is essential to understand the interplay between the three elements: Because the first pillar - the state pillar - is under strain due to the increasingly ageing population, more emphasis needs to be placed on the other two.

Service of a good pension scheme

Only the best for elderly people: this motto can only be realised if the right course is set ahead of time. It is particularly important to pay attention to the costs and conditions:

	The highest possible level of transparency
	The right degree of flexibility
	Risk/return ratio* according to your investment type and risk tolerance
	Inheritance treatment

*Risk and return are two sides of the same coin. An investor must tolerate a certain risk in exchange for the prospect of a return. And it is only in the long term that more risk generally means more return.

Investors differ enormously in terms of their investment horizon and risk tolerance. The pension product must therefore always be in line with the individual's need to continue to sleep well at night. And it must suit the personal financial situation.

Knowing your own pension gap

How much money is needed for a comfortable retirement

The pension gap is the difference between the amount you need to live on in retirement and the income from your state pension. This gap arises because in most cases the state pension cannot fully cover your expenses as it does not correspond to your full salary. In short: it is the money that is missing from a pension such that it does not achieve the desired standard of living.

The personal pension gap is calculated as simply as that:

Amount of money needed to live on in retirement

	Know your income from the pension: This information is contained in the pension information on page 1.
	Determine outgoings during retirement: Once an overview of current outgoings (rent, insurance, purchases, contracts, etc.) has been obtained, a realistic decision can be made about how much money should be spent each month in retirement.
	Take inflation and pension increases into account: It is important to note that the current capital will be worth significantly less in a few years due to inflation. Even if there are regular pension increases to compensate for this, they do not always compensate.

Note: An exact calculation is not possible as some assumptions are made about the financial future.

	In order to close the pension gap, private provision should be made in addition to the state pension.

Invest for your retirement with Scalable Capital

The right pension for everyone: get started now and make your own provisions

Wealth Scalable Wealth At Scalable Wealth, we take care of your investments - based on your personal risk tolerance and the focus of your chosen strategy. Our aim is to provide professional, convenient and cost-effective investment support for retirement provision. Learn more

Broker Scalable Broker Another option is to build up your own portfolio in the Scalable Broker to make provisions for your old age. Here, the investment can be fully controlled by you and invested in ETFs, stocks, bonds and more. In addition, our Knowledge Hub offers good support when getting started. Learn more

*The target return depends on market developments and is shown before costs. It was calculated on the basis of the portfolio components’ return as of 29. November 2024. The ETF costs (0.13% p.a.) and wealth management/trading fees (0.75% p.a.) will have a yield-reducing effect. Expected returns are forecasted and do not represent a reliable indicator of future performance.

There are risks associated with investing. The value of your investment may fall or rise. Losses of the capital invested may occur. Past performance, simulations or forecasts are not a reliable indicator of future performance. Please refer to our risk information.