What is it about?
A Rürup pension is tax-supported retirement provision with lifelong pension payments. The capital is generally not freely accessible; individual tax effects need to be checked.
On this page
- What is a Rürup pension / Basisrente?
- What do we cover in a consultation?
- Who can take out a Basisrente?
- Advantages of a Rürup pension
- Disadvantages and restrictions
- Advantages and disadvantages at a glance
- Tax relief while paying contributions
- Taxation during retirement
- Who might benefit from a Rürup pension?
What is a Rürup pension / Basisrente?
A Basisrente is tax-supported private provision in the first pension tier. It provides a lifelong monthly annuity, generally no earlier than age 62 for new contracts. Traditional or unit-linked arrangements are possible. In return for tax support, the capital generally cannot be freely withdrawn, transferred or pledged. It is long-term retirement provision rather than an accessible savings account.
What do we cover in a consultation?
We first review existing pension rights, a suitable liquid reserve and affordable long-term contributions. We then compare investments, costs, annuity factors and potential survivor benefits. Tax effects depend on income and already-used deduction capacity. A large tax refund alone is not a sufficient reason to sign. Exact personal calculations can be coordinated with your tax adviser.
Who can take out a Basisrente?
The product is not limited to the self-employed. Employees, freelancers and civil servants can also arrange suitable contracts. Actual tax benefits depend on personal deduction capacity and income. With variable earnings, contribution flexibility must fit the long-term commitment. Age, investment horizon and other retirement provision should also be considered.
Advantages of a Rürup pension
Contributions may be tax-deductible within statutory limits. A contract can provide a lifelong annuity and, depending on design, market-based investment. Some tariffs allow variable contributions and extra payments. These features can support additional basic retirement income. The eventual pension depends on guarantees, investment performance and costs, rather than today’s tax saving.
Disadvantages and restrictions
Capital generally cannot be withdrawn as a freely chosen lump sum or surrendered early for cash. Contributions can often only be suspended; transfers are restricted. Rights are generally not inheritable, although qualifying survivor annuities may be agreed. Costs, possible investment risks and later taxation also apply. This commitment is particularly important if you need accessible money.
Advantages and disadvantages at a glance
Today’s tax relief comes with long-term restrictions and later pension taxation. Lifelong income may fit retirement plans, while limited access to capital may constrain other goals. The table helps you weigh both sides. What matters is the overall fit after costs and taxes, rather than any single advantage.
| Potential advantage | What to consider |
|---|---|
| Tax deduction for contributions | Limited capacity shared with other basic pensions |
| Lifelong annuity | Generally no freely available lump sum |
| Variable payments depending on tariff | Keep a separate accessible reserve |
| Fund investment depending on contract | Review costs, fluctuations and annuity factor |
Tax relief while paying contributions
Since 2023, basic pension contributions can be fully considered within the statutory maximum. Statutory and professional pension contributions share the same deduction capacity. This does not mean the state pays your entire premium: actual savings depend on your tax liability. We consider remaining deduction capacity, budget and costs together.
Taxation during retirement
A Basisrente is subject to deferred taxation. The taxable share depends on the pension start year and statutory transition rules, increasing for later starting cohorts. Your personal rate depends on total taxable income. A large tax saving today should not be confused with a permanently tax-free pension. Planning should focus on expected income after tax.
Who might benefit from a Rürup pension?
It may suit people with long-term retirement needs, sufficient liquidity and usable tax deduction capacity, often including the self-employed. It is less suitable when capital is needed flexibly for other goals or payments are unaffordable. We compare it with existing provision and alternatives, considering investments, costs, family protection and later taxes together.
Who is it for?
For the self-employed and others considering additional basic retirement provision.
What we look at together
- Costs, guarantees and investment approach
- Long-term restrictions and survivor benefits
- Contributions and individual tax position
What helps for our first conversation?
- Retirement policies
- Income and budget overview
- Questions about tax treatment
Your topic is enough for a first message. We agree on a suitable way to exchange personal documents or medical details later.