Imagine a long-term retirement plan where 100% of your monthly savings flow into broadly diversified global ETFs from the very first euro, with zero built-in acquisition commissions (no Zillmerung) and no ongoing trail commissions. That is the core principle of the ETF net policy (Honorartarif): ultra-low effective costs, tax-free rebalancing, and substantial German tax advantages from age 62.
Key Facts at a Glance
| What it provides | An ETF pension insurance without built-in acquisition commission; advice is paid for separately and transparently. |
|---|---|
| Limits and drawbacks | A separate fee for the advice, which may remain payable even on early cancellation, and market risk. Details |
| Who needs it | For anyone saving for retirement with ETFs over the long term who wants to see the costs clearly. |
| What does it cost | It depends on your personal situation. I will gladly prepare a non-binding quote for you: get in touch. |
| What to look out for | The amount and payment terms of the fee, ongoing costs, choice of ETFs and the tax advantages at payout. |
Sarah and Christian's Story: Full ETF Returns Without Hidden Commissions
Fictional example for illustration; all persons and events are invented.
Sarah and Christian live in Germany: Christian works as an engineer, and Sarah is a freelance designer. Both already use a regular ETF brokerage account for mid-term reserves, but they wanted a tax-efficient core pillar for their long-term retirement provision.
"Daniel," Christian said, "we looked at an offer for a traditional pension insurance policy, but nearly €4,000 in acquisition and distribution commissions would have been deducted in the first five years alone. At the same time, we need a contract that stays adaptable if Sarah's freelance income fluctuates." They wanted a pension plan that works for their compound interest from day one.
We set up a commission-free net policy for both of them using ETFs. Because there is no front-loaded commission (Zillmerung) and no ongoing trail commission, 100% of their contributions flow directly into low-cost global ETFs. At the same time, they can adjust their monthly savings rate, make lump-sum top-ups, or withdraw partial amounts if needed while their retirement capital compounds tax-free inside the insurance wrapper.
Why Waiving Acquisition Commissions Makes a Massive Difference
In a traditional gross pension policy (Bruttopolice), upfront acquisition commissions of 2.5% to 4% of the total lifetime contribution sum are deducted from your payments during the first five years (a practice known as Zillmerung). As a result, your contract starts deeply in the red right when early compounding matters most.
An ETF net policy completely eliminates built-in acquisition and trail commissions. Your savings are invested 100% from the first euro into institutional and clean-share ETFs, with total effective contract costs often below 0.5% p.a. Through a neutral market comparison, we select the most cost-efficient providers so that every euro you save on fees compounds directly for your retirement.
Long-Term Retirement Saving with High Contractual Flexibility
Although a net policy is built for long-term wealth accumulation until retirement from age 62, it never locks you into rigid payment obligations. You remain in full control of your contribution plan and payout options:
- No Zillmerung: 100% of your contributions are invested from the first euro without upfront commission deductions.
- Tax-Free Rebalancing: Switch ETFs or shift into lower-volatility assets before retirement without triggering capital gains tax or annual prepayment tax (Vorabpauschale).
- Half-Income Rule & Ertragsanteil: From age 62 (after 12 years), only 42.5% of gains are taxed on a lump-sum payout, or choose a lifelong annuity with low earnings-portion taxation.
- Flexible Contributions & Withdrawals: Adjust or pause monthly rates, add lump sums, or make partial withdrawals without surrender penalties.
Requirements for Expats
- Valid German Address (Anmeldung)
- German Bank Account (IBAN)
- German Tax ID
Limits and Drawbacks
A net policy is usually considerably cheaper than a traditional gross policy. You should still know this:
- Advice fee: The fee is agreed separately and, depending on the agreement, remains payable even on early cancellation.
- Market risk: The value of the ETFs fluctuates; there is usually no guarantee.
- Long horizon: The tax advantages only apply to payouts after your 62nd birthday and after a term of at least 12 years.