Rürup pension
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What is the Rürup pension / basic pension and which
Does it have any special features?
A customized market analysis tailored to your needs
- The suitability of the Rürup pension / basic pension as a suitable component for your individual retirement planning
- Tax advantages, especially for self-employed individuals and high-earning employees
- Option to combine with disability insurance
- Flexibility for additional deposits during the savings phase
- Protection for surviving dependents
- Guaranteed pension factors
- Detailed and tailored advice from our qualified insurance consultants
Who is the Rürup pension / basic pension suitable for?
The basic pension, also known as the Rürup pension, is particularly recommended for self-employed individuals, as they do not have to pay contributions into the statutory pension insurance scheme. It offers tax-advantaged retirement savings. Payouts are made in the form of a lifelong monthly pension and can begin no earlier than age 62. The pension payments are taxed at the individual's tax rate, depending on when the pension payments begin. The basic pension offers the following advantages:
- Payment of a lifelong annuity, similar to other pension insurance contracts.
- Government support through tax advantages via special expense deductions. Contributions to statutory pension insurance or pension funds reduce the allowance.
- The accumulated capital is disregarded when calculating assets in the case of prolonged unemployment (ALG II).
- Increases in value during the savings phase are not subject to taxation by the policyholder.
- An integrated disability insurance policy can be tax-deductible, provided the premium for it does not exceed 50% of the total premium. The premium for the included "premium waiver in case of disability" module is considered a contribution to retirement savings.
- Flexible savings: Costs can be kept low initially if the budget and business performance only allow for limited savings. Deposits can be temporarily suspended.
- Only those voluntarily enrolled in statutory health insurance pay health and long-term care insurance contributions on the payout amount of their Rürup pension. Others receive the payout without deductions for statutory health and long-term care insurance.
Our financial advisors are happy to help you choose the right product for your needs.
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Subject areas
Subject areas
What we pay particular attention to regarding the Rürup pension
The basic pension, also known as the Rürup pension, offers tax advantages and allows for higher contributions compared to the Riester pension. However, there are important aspects to consider when deciding on a Rürup contract.
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Maximum funding limit and individual contributions: In 2023, the maximum tax-deductible amount is €26,528. However, this entire amount cannot be fully deducted from taxable income for everyone when contributing to a Rürup pension plan. Employees and civil servants must deduct their mandatory contributions to the statutory pension insurance before the remaining amount can be used for additional retirement savings.
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Tax treatment of contributions: A welcome development is that Rürup savers can now claim 100 percent of their retirement savings contributions as tax deductions. Compared to the previous year, when the tax office only recognized up to 94 percent of payments as special expenses, this now results in greater tax savings.
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Flexibility and costs: It's important to remember that Rürup contracts can have certain disadvantages. Their flexibility is limited compared to other retirement savings products, and the costs can be high. Therefore, it's crucial to carefully consider whether the tax advantages outweigh the potential drawbacks.
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Declaring Rürup contributions in the tax return: We would like to inform our customers that the Rürup contributions paid can be declared in the "Pension Expenses" section of their tax return. This way, they can benefit from the tax advantages.
When deciding on a Rürup pension plan, it's particularly important to consider these points to make an informed choice. We conduct comparisons between different providers, review contract terms, and offer advice to find the right retirement savings solution for you.
Frequently Asked Questions (FAQ)
The tax office recognizes annual contributions of €20,000 for single individuals and €40,000 for married couples. This year, 72 percent of these contributions can be deducted as special expenses. This percentage will gradually increase to 100 percent by 2025.
What is the significance of the guaranteed pension for the Rürup pension?
Self-employed individuals often have irregular incomes and may not be able to pay contributions regularly. A flexible contract gives them the option of deferring payments interest-free or making additional payments when business is good.
Switching to a different insurer or taking out a new contract will incur new setup costs. It is crucial to check whether the contract covers such changes and whether the insurer will cover these costs.
Only tariffs that comply with legal requirements receive a certificate from the Federal Central Tax Office. This certificate is required to receive tax incentives.
Yes, the Rürup pension has a minimum term. Normally, this term lasts until reaching retirement age, which is usually 67. However, it is also possible to claim the Rürup pension early, although this may result in reductions in the pension amount.
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