ETF retirement provision for parents: saving for your child should not mean forgetting yourselves
The statutory pension is becoming basic provision — the rest is your decision.
- The same ETF logic as the children’s plan — for you
- Tax-advantaged or maximally flexible: both possible
- From 2027: the new pension depot with state subsidies
The answer in 30 seconds
Retirement provision in Germany has three layers: Rürup (basic pension), company pension and private provision. The first two save taxes today but lock the money until at least 62 — and payouts are fully taxed. The private ETF policy flips it: no tax break today, but available at any time, fully inheritable — and thanks to the half-income rule only half the gains are taxed later.
- Layers 1+2: tax break today, but locked until 62 and fully taxed later
- Layer 3 (ETF policy): available any time, freely inheritable
- Half-income rule: with 12+ years term and payout from 62, only half the gains are taxable
- Which layer(s) fit you — including combinations — we calculate honestly
The three layers compared directly
All three can use ETFs as the engine — the difference lies in taxes, access and inheritability.
Simplified overview based on Sections 10, 3 No. 63 and 20 (1) No. 6 of the German Income Tax Act. Maximum amounts and details change yearly — we calculate the concrete values for your year in the call. No tax advice.
The half-income rule — layer 3’s tax advantage
The rule is simple: if the policy runs for at least 12 years and you take the payout at 62 or later, only half of the gains are taxable — at your personal rate instead of a flat tax on everything (Sec. 20 (1) No. 6 EStG). In a depot, the full gain is subject to withholding tax. Here is an example:
- Payout at 62 (model example)
- €100,000
- Of which gains (paid in: €40,000)
- €60,000
- Taxable under the half-income rule: half
- €30,000
- Tax at e.g. a 30% personal rate
- €9,000
- Compare: depot withholding tax on the full gain (26.375%)
- €15,825
- The policy’s tax advantage in this example
- €6,825
Model calculation with assumed values — your advantage depends on gains, personal tax rate and term. Requirement: at least 12 years of term and payout from 62. No tax advice; we run it with your numbers in the strategy call.
How do parents best provide for retirement?
With the same logic as the children’s savings plan — just a different horizon. A broadly diversified ETF portfolio, a long term, disclosed costs. Chancellor Merz said it plainly in April 2026: the statutory pension will be “at best basic provision”. You close the gap yourselves — and the earlier, the smaller the required amount.
From January 2027 the state-subsidised pension depot arrives: up to €540 basic allowance plus €300 per child, every year.
Past performance is not a reliable indicator of future results. Investments carry risk.
Three routes that can be combined
Your gap, your numbers — in 45 minutes
Free and non-binding: we work out where you stand and what the earliest step is worth.
Free initial consultation