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Trusted Finance Advisory by
Save for old age
and save taxes with the Rürup pension
The basic pension (also Rürup pension) forms the basis for your retirement provision right from the start of your retirement. You can claim the contributions for your pension as tax deductions by deducting them from your taxes.
By paying variable contributions to the basic pension / Rürup pension, you decide on the contribution yourself and can adjust it according to your income. The basic pension / Rürup pension is subsidized by the state for tax purposes: you can deduct it from your taxes - up to 27,566 euros annually.
Tip: With the combination of basic pension / Rürup pension as a retirement provision and the important occupational disability insurance, you can take advantage of tax incentives even further. Under certain conditions, you can deduct the contributions for both occupational disability insurance and basic pension / Rürup pension as special expenses in your tax return.
Would you like to find out more about the Rürup pension or retirement planning in general?
Arrange an appointment to talk to an experienced expat consultant.
The most important things about the basic pension / Rürup pension in brief:
Self-employed people and employees provide for old age with tax advantages with the basic pension / Rürup pension. Like the statutory pension insurance and the occupational pension funds, the basic pension / Rürup pension is part of the first pillar of retirement provision. Contributions to the basic pension / Rürup pension of up to 27,566 euros per year reduce your tax burden. For married couples who file joint tax assessments, up to 55,130 euros. For 2024, the tax share is 83%. Full taxation will not be achieved until 2058 instead of 2040. The basic pension / Rürup pension can be combined with insurance against occupational disability - so these contributions can also be claimed for tax purposes.
What is the basic pension / Rürup pension?
The Rürup pension has been part of the first pillar of retirement provision since 2005, together with the statutory pension insurance and professional pension funds (for example for doctors, lawyers and notaries). That is why it is also called basic pension. This is usually a classic or fund-linked pension insurance. The Rürup pension is rarely available as a fund savings plan. The special thing about this type of pension provision is that the contributions are tax-privileged, just like those for statutory pension insurance. This means that self-employed people who are not compulsorily insured in the statutory pension insurance or in a pension fund can build up pension provision for their pension with state support right from the start of retirement. Those with statutory pension insurance use the basic pension / Rürup pension to fully utilize the maximum amount for retirement provision expenses and to generate a supplementary pension. Combined insurance against occupational disability is also possible with the basic pension / Rürup pension. Unlike the Riester pension, for example, the tax advantages also apply to contributions to supplementary occupational disability insurance.
Who can take out the basic pension / Rürup pension?
This pension insurance was originally intended specifically for self-employed people who are neither compulsorily insured in the statutory pension insurance nor do they belong to a pension fund. Employees also benefit from this form of retirement provision under certain circumstances. In principle, anyone can take out a basic pension / Rürup pension. However, the tax advantage does not apply if you already make high contributions to the statutory pension or a pension fund. In this case, a private pension insurance or a Riester contract may be the better alternative for the pension.
Who can take out the basic pension / Rürup pension?
This pension insurance was originally intended specifically for self-employed people who are neither compulsorily insured in the statutory pension insurance nor do they belong to a pension fund. Employees also benefit from this form of retirement provision under certain circumstances. In principle, anyone can take out a basic pension / Rürup pension. However, the tax advantage does not apply if you already make high contributions to the statutory pension or a pension fund. In this case, a private pension insurance or a Riester contract may be the better alternative for the pension.
Tax specifics of the basic pension / Rürup pension
The basic pension / Rürup pension is supported by tax on the one hand, but on the other hand the later payout is taxable. The crediting takes place step by step in both the savings and the payout phase. When saving for your pension: In 2024, 100 percent of the contributions to the basic pension / Rürup pension up to the maximum contribution will be taken into account as a tax deduction. During the payout phase: In 2024, 83 percent of the pension will be taxable. If you retire later, the tax rate for new pensioners will now increase by 0.5% annually until the entire pension has to be taxed from 2058.
Tax specifics of the basic pension / Rürup pension
The basic pension / Rürup pension is supported by tax on the one hand, but on the other hand the later payout is taxable. The crediting takes place step by step in both the savings and the payout phase.
When saving for your pension:
In 2024, 100 percent of the contributions to the basic pension / Rürup pension up to the maximum contribution will be taken into account as a tax deduction.
During the payout phase:
In 2024, 83 percent of the pension will be taxable. If you retire later, the tax rate for new pensioners will now increase by 0.5% annually until the entire pension has to be taxed from 2058.
Annual gross income
Rürup pension contribution monthly
Contribution to basic pension / Rürup pension annually
Tax benefit monthly
Annual tax benefit
30.000€
250€
3.000€
70€
844€
50.000€
500
6.000€
174€
2.090€
70.000€
1.000€
12.000€
415€
4.980€
120.000€
1.000€
12.000€
433€
5.316€
Does the basic pension / Rürup pension contract offer protection for surviving dependents?
The basic pension / Rürup pension cannot be mortgaged, there is no lump sum payment and the contract cannot be inherited. Without additional agreements, the contributions paid for the pension will be paid to the insurer of the basic pension / Rürup pension if you die during the savings phase. However, it is possible to agree on a refund of pension contributions. A pension guarantee period or pension for surviving dependents is also possible during the payout phase, although this additional security in the event of death reduces the amount of the pension while the pension is being drawn.
Can the basic pension / Rürup pension be canceled?
With the basic pension / Rürup pension, you should be covered for your pension right from the start of your pension, just as you would through statutory insurance or a pension fund. Therefore, the legislature has decided that policyholders are not allowed to terminate this contract. If you can no longer or do not want to afford the pension contributions, the insurance must be made non-contributory. Alternatively, some providers offer to continue your retirement provision for a minimum contribution of 25 or 50 euros per month.
Would you like to find out more about the Rürup pension or retirement planning in general?
Arrange an appointment to talk. An experienced MLP consultant will take time for you and work with you to determine whether the Riester pension or a private pension insurance, the basic pension or a company pension plan is recommended for you and your family.