Why the full balance does not arrive on transfer
How much arrives on transfer depends on the contract type. What is transferred is always a cash value, never fund units. With insurance contracts the insurer's calculation decides what that cash value is.
Fund and bank savings plans
The balance is the current value of the fund units or the savings balance. On transfer the units are sold and the proceeds transferred; the units themselves do not move. The transfer value usually equals the account balance on the transfer date, minus permissible switching costs.
Annuity insurance (classic and unit-linked)
Insurers show several values: cover capital, surrender value and transfer value. The transfer value can be below the cover capital for three reasons:
- Acquisition costs already offset. They are set against contributions in the first five years (Zillmerung). For young contracts the transfer value is therefore well below the sum of contributions. These costs are lost regardless of the transfer – they are already paid on continuation too.
- Valuation reserves and surpluses. Whether and how much of them accompany the transfer follows from the contract terms.
- Cancellation deduction. For a Riester provider switch it is limited by the €150 rule; a deduction beyond that is not permitted.
What the difference means for the calculation
Two contracts with the same cover capital can have different transfer values. For a comparison only the transfer value counts: it is the starting capital in the new account. The example calculation in the switch check therefore uses the transfer value, not the balance.
How to get the figure
Many insurers show the transfer value on the statement, others only on request. You are entitled to the information. A written request with the contract number is enough; template at letter templates.
Quick answers
Can fund units be transferred without selling?
No. The cash value is transferred; this applies to all contract types.
Is the difference between balance and transfer value a switching fee?
No. Switching fees are capped at €150. The difference comes from the contract's calculation, mainly from acquisition costs already offset.
What you can check now
- What transfer value does your insurer state, and how far is it below the cover capital?
- How old is the contract – are the acquisition costs fully offset (usually after five years)?
- How does your contract treat surpluses and valuation reserves on a provider switch?
- Retirement Provision Reform Act (Altersvorsorgereformgesetz), Bundestag 27 March 2026, Bundesrat 8 May 2026, promulgated 26 May 2026 (BGBl. 2026 I No. 156)
- Insurance Contract Act (VVG) §§ 169 ff. on surrender value and acquisition costs
- Contract terms and statements of major Riester insurers
This page provides general information about statutory rules. It is not legal, tax or investment advice and makes no recommendation for any individual contract. For a personal assessment, consumer advice centres (Verbraucherzentralen) or licensed advisers are the right address – where to get advice.