Short answer: A payout plan in the Altersvorsorgedepot pays out the balance in regular instalments. Under the Pension Contract Certification Act (AltZertG) it ends at the earliest on reaching age 85. Without a different agreement the payout phase starts at 65, so a plan runs at least about 20 years. The monthly amount is reset on fixed reference dates (last updated: November 2026).
Many savers imagine the payout of the Altersvorsorgedepot as a pension paid for life. For new contracts from 2027, the law provides a payout plan that runs over a fixed period. This guide explains what a payout plan over 20 years means, when it starts, how the monthly amount is set and what to consider when planning.
The most important points
- The payout plan spreads the balance over regular payments and is not a lump sum.
- The plan ends at the earliest on reaching age 85 (last updated: November 2026).
- Without a different agreement the payout phase starts at 65, for contracts concluded after 31 December 2026.
- The monthly amount is reset on fixed reference dates, so it is not a fixed sum for the whole term.
- Whether any benefit follows after the plan ends is set by the contract and not by the law alone.
What a payout plan is
A payout plan converts the accumulated balance into a series of payments. Instead of receiving the sum at once, you receive regular amounts over a set period. The basic idea is to spread the money so that it lasts across the term. How long it lasts depends on the balance, on the investment during the payout phase and on the size of the payments.
In the Altersvorsorgedepot the law ties the term to an age limit. The plan may not end before age 85. The fixed term gives the plan a clear frame, which you should include in your own calculation.
When the payout starts
Without a different agreement the payout phase starts on reaching age 65. This applies to contracts concluded after 31 December 2026. In the contract you can agree a different start, where the provider offers this. If you start later, the plan can be shorter, because the end stays at age 85.
How long the plan runs at least
Under the law the payout plan ends at the earliest on reaching age 85. If the payout starts at 65, that means at least 20 years. This is why the term payout plan over 20 years describes a minimum term. It is not a recommendation. If you start later, the plan can be correspondingly shorter, because the end remains at age 85.
| Feature | Rule | Status | Source |
|---|---|---|---|
| Earliest end of the plan | Reaching age 85 | Law in the version applying from 1 January 2027 | AltZertG, section 1 subsection 1 no. 4 letter b |
| Start without agreement | Reaching age 65 for contracts after 31 December 2026 | Law in the version applying from 1 January 2027 | AltZertG, section 7b subsection 1 |
| Monthly amount | Reset on fixed reference dates | Law in the version applying from 1 January 2027 | AltZertG, section 1 subsection 1 no. 4 letter b |
Worked example: 100,000 euros over 20 years
Assumption: the balance at the start of the payout is 100,000 euros, the term is 20 years (240 months), and no return arises during the payout. Then the level monthly payment is about 417 euros gross.
| Balance at start (assumption) | Term | Monthly payment without return (assumption) |
|---|---|---|
| 50,000 euros | 240 months | about 208 euros |
| 100,000 euros | 240 months | about 417 euros |
| 150,000 euros | 240 months | about 625 euros |
The examples are deliberately simplified. In practice the balance keeps growing during the payout if the investment earns a return, and the amount is reset on the reference dates. The tax treatment of the payments is not included in these calculations.
Is a payout plan like a pension?
A payout plan ends after a fixed period. That distinguishes it from a payment for life, even though both serve retirement. Whether any benefit follows after the plan ends depends on the contract and should be clarified before you sign. If you expect a lifelong payment, ask the provider explicitly and do not infer it from the term.
Another difference concerns risk. With a payout plan you carry the longevity risk only until the end of the term. If you live longer, you must plan with the remaining balance, if any, unless the contract provides a rule for it.
What to consider when planning
- Check when the payout starts and whether the contract allows a different start.
- Clarify how the monthly amount is set on the reference dates and according to which rules it changes.
- Plan with the expected balance at the end of the accumulation phase, not with the sum of your contributions, and keep a safety margin.
- Have the tax treatment of the payments explained before you commit.
Frequently asked questions
Can I change the payout plan later?
The contract sets whether and how the plan can be adjusted. Ask the provider before you commit, because adjustments are not regulated the same way everywhere.
What happens if I need money before 65?
A payout before the payout phase starts can have tax and subsidy consequences. The details of early payout are covered in a separate guide, linked below.
Is a payout plan over 20 years always the right choice?
No. The term is a legal minimum for the end of the plan and not a recommendation. Whether it fits your needs depends on your other income, your expenses and your investment.
Who receives the payment if I die earlier?
That depends on the rules for death. The guide on inheritance explains what applies to surviving relatives (in German).
Making the assumptions explicit
A payout plan is only as good as the assumptions behind it. Someone who expects a high return during the payout arrives at a higher monthly amount than someone who plans with no return. Ask the provider for two variants, a cautious and an optimistic one, and do not decide on the higher figure alone.
Related articles
- Retirement provision 2027: the overview of depot, Frühstart-Rente and Riester
- Does a guarantee product in the Altersvorsorgedepot pay off?
- Altersvorsorgedepot inheritance: what happens to the balance on death
- Altersvorsorgedepot early payout: is it possible and what does it cost?
- Altersvorsorgedepot allowance calculation: 50 cents per euro up to 360 euros
Sources: Pension Contract Certification Act (AltZertG) in the version amended by the pension reform act, sections 1 and 7b (version from 1 January 2027), Section 93 EStG, harmful use (version in force).
Last updated: November 2026. This guide is general information, not individual advice.
