Germany just passed a law to enable self-invested pension products (Altersvorsorgedepot). The law will take effect in 2027, but many competitors have already announced that they will be offering a product and reveal the terms and conditions at some point this year. I was wondering if Trading 212 has any plans to offer Altersvorsorgedepots, as I would love to use pies for this. That is still a unique feature on the German market.
Brief overview:
Every provider must offer a basic version, typically called a āStandardproduktā or āStandarddepotā, in which they select two funds (one risky and one low risk), essentially replicating the function of target date funds. Fees are capped at 1% (reduction in yield).
More interestingly, providers can also offer an āAltersvorsorgedepotā without these restrictions, in which case investors can pick their own funds and switch as they wish. This is broadly comparable to a SIPP.
You can contribute up to 1800 ā¬ per year and receive a matching contribution from the government (Zulage), depending on the size of your contribution and how many children you have. This is also tax deductible.
Capital gains are not taxed in this account.
Payments must begin between the ages of 65 and 70 and continue until the age of 85 through regular withdrawals. You can take out 30% at the beginning of the distribution phase. These withdrawals count as taxable income.
You can cancel the plan at any time, in which case you must repay all subsidies and gains you have made will be taxed.
You have the right to switch to a different product; this also applies to the old Riester product.
You can contribute up to 6840 ā¬ per year to one retirement product, and you can have two of them. This means that you can either overpay or have a separate plan that is funded without subsidies for tax deferral purposes.
Some links for more information (in German):
