Scalable Capital announces low-cost pension depot

Neobroker Scalable Capital has announced plans to launch a pension depot starting next year, positioning itself as one of the first providers to disclose specific cost structures for such products. The company intends to offer a fee-free pension depot, where the only recurring costs would be the Total Expense Ratio (TER) of the ETFs. Scalable aims to cap these costs at a maximum of 0.15 percent of the investment amount and will waive all costs during the first year.

This development comes amid discussions regarding effective cost limits. The German government has expressed intentions to limit effective costs to one percent per year. Effective costs represent the total impact of all fees—including account management and transaction fees—on the annual return.

Financial projections suggest that fee structures have a significant long-term impact on retirement savings. For a 40-year savings period with a 100 euro monthly contribution and a 5 percent annual return, a completely fee-free account would result in approximately 148,000 euros. Even Scalable’s proposed 0.15 percent fee would reduce that final sum by roughly 5,400 euros.