Price war over pensions: Retirement savings for 0 euros
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Scalable Capital is preparing to enter Germany’s new state-supported Altersvorsorgedepot (retirement investment account), with low costs becoming a major selling point as providers compete for millions of future savers.
The new retirement system is scheduled to begin on January 1, 2027. It is designed to allow people to invest for retirement through capital-market products such as ETFs while receiving government subsidies and tax advantages.
Scalable is positioning itself as a low-cost competitor ahead of the launch. The company says its retirement depot will focus on inexpensive investments and give customers greater freedom to choose their own securities rather than forcing them into traditional guaranteed pension products.
Under the new system, savers can receive a basic government allowance of up to €540 per year. Families can receive an additional €300 per child annually, while people under 25 can qualify for a one-time €200 bonus. Investment gains can remain untaxed during the savings phase.
The reform is intended to make private retirement saving more attractive and flexible than traditional Riester and Rürup products. Unlike Riester, the new Altersvorsorgedepot does not require a capital guarantee, allowing savers to pursue higher returns through investments such as broadly diversified ETFs.
Scalable has already begun preparing its customers for the new product, although the company says the actual retirement depot will become available once the legal framework is fully implemented. The provider is encouraging interested customers to join its information list ahead of the launch.
The reform could create a major new market for online brokers and investment platforms. Scalable is already competing aggressively on fees in its regular brokerage business, offering free savings plans and a low-cost PRIME+ model.
The planned Altersvorsorgedepot could therefore intensify competition between digital brokers, banks and traditional pension providers. With government subsidies making the product potentially attractive to a much wider group of savers, providers have a strong incentive to offer low fees and simple investment options from the beginning.
For consumers, the biggest change could be a shift away from traditional pension products toward market-based investing. However, the higher return potential also comes with investment risk: unlike guaranteed products, the value of ETFs and other securities can fluctuate, and losses are possible.