From saving to payout
The retirement savings account is meant for old age, and the payout rules reflect that. Under the pension reform act (BGBl. 2026 I No. 156; as of 24 September 2026) there are clear rules on when and how you can access your money and how it is taxed.
From age 65 at the earliest
The payout phase starts at the earliest on reaching age 65. An exception applies if you draw a statutory old-age pension earlier. Until then the capital is locked. That clearly distinguishes the retirement savings account from a regular depot that you can access at any time.
Three ways to receive the money
- Payout plan: the capital is paid out in monthly instalments, at least until age 85. The remaining balance stays invested and can continue to grow. The risk: if you live well beyond 85, the money may already be used up.
- Lifelong annuity: if you want to insure against longevity, you can choose an annuity. The monthly payment is lower, but it is paid for life.
- Partial lump sum: at the start of the payout phase, up to 30 % of the capital can be withdrawn at once, for example for a renovation or a major purchase.
A worked example
A 35-year-old saves 150 € a month from 2027 until 67. At 6 % return before costs and 0.8 % costs, our model gives an account value of around 186,000 €. A payout plan from 67 to 85 yields around 1,300 € gross a month at a constant return. If she takes the maximum lump sum instead, she can withdraw around 56,000 € at the start of retirement; the monthly instalments are correspondingly lower.
Deferred taxation
During the saving phase, income and price gains in the account remain tax-free. In return, payouts in old age are taxed as other income at your personal income tax rate. The principle: what was subsidised during the saving phase is taxed during the payout phase.
- Subsidised contributions and subsidies: the resulting payouts are fully taxable.
- Contributions above 1,800 € a year: these were not subsidised; in our simplified model only the earnings portion is taxable.
- Personal tax rate: because income in retirement is usually lower, the tax rate is often lower than during working life.
In the example above, with an average tax rate of 20 %, about 1,050 € net remain from around 1,300 € gross. Whether health and long-term care insurance contributions are also due depends on your insurance status; our calculator does not model this.
Payout plan or lifelong annuity?
The payout plan is more flexible and usually brings higher instalments in the early years, because no loading for insuring a long life has to be built in. The remaining capital stays invested and can keep earning returns, but it also fluctuates with the markets. The lifelong annuity removes the risk of outliving your money: it pays as long as you live and is predictable. In return, the monthly payment is lower. Many people choose a mix: part as a lump sum for larger expenses at the start of retirement, the rest as ongoing payouts. If you are healthy and come from a long-lived family, the annuity deserves serious consideration; if you value flexibility and have other income, the payout plan often works well.
Plan together with the statutory pension
Payouts from the retirement savings account supplement the statutory pension. Estimate how high that is likely to be with the pension calculator. Calculate your personal payout from the retirement savings account with the retirement savings account calculator. All figures are model calculations without guarantee and not tax advice.