The Rürup pension (officially: Basisrente) is the only state-subsidised private pension scheme open to self-employed individuals and freelancers in Germany. With a tax deduction of up to €27,566 (singles) or €55,132 (married couples), it is especially attractive for high earners. But what remains after deferred taxation?
What is the Rürup Pension?
The Rürup pension (Basisrente, §10 EStG) is a state-subsidised private retirement contract introduced in 2005. Unlike the Riester pension, there are no direct allowances — the benefit comes entirely through the tax deduction on contributions:
- Contributions are deductible as special expenses (Sonderausgaben)
- Maximum deductible in 2026: €27,566 (single) / €55,132 (married)
- Deductibility rate: 100% from 2025 onwards
- Payouts: lifelong, earliest from age 62 (contracts from 2012)
Who benefits most?
High earners with a marginal tax rate of 42% or 45% achieve the greatest tax savings. Self-employed individuals without statutory pension insurance often use the Rürup pension as their primary retirement vehicle.
Tax Savings in the Accumulation Phase
Tax savings arise because your contributions reduce your taxable income. At a marginal rate of 42% and annual contributions of €10,000:
Tax savings formula
Tax savings = deductible contribution × marginal tax rate
Example: €10,000 × 42% = €4,200 per year
Example over 30 years:
- Contribution: €500/month = €6,000/year
- Tax savings: €6,000 × 42% = €2,520/year
- Total tax savings: €2,520 × 30 years = €75,600
| Annual Contribution | Marginal Tax Rate | Tax Savings/Year | Tax Savings over 30 Yrs |
|---|---|---|---|
| €3,600 | 35% | €1,260 | €37,800 |
| €6,000 | 42% | €2,520 | €75,600 |
| €27,566 | 45% | €12,405 | €372,150 |
Capital Accumulation
With a fund-linked Rürup pension at 5% return and a 32-year savings period:
Example calculation
€300/month, age 35 → 67, 5% p.a. return:
Capital at retirement ≈ €271,000
Monthly gross pension (20 years): ≈ €1,129/month
Deferred Taxation: What Remains Net?
Rürup pensions are taxed on withdrawal (nachgelagerte Besteuerung): contributions are tax-free, but payouts are taxable. The taxable portion increases gradually:
| Retirement Year | Taxable Portion |
|---|---|
| 2026 | 83% |
| 2030 | 87% |
| 2040 | 100% |
Example deferred taxation (retirement 2026):
- Gross monthly pension: €1,129
- Taxable portion: 83% = €937/month = €11,244/year
- Tax at 20% marginal rate in retirement: €11,244 × 20% = €2,249/year
- Net pension: (€1,129 × 12 − €2,249) / 12 = €942/month
As long as your marginal tax rate in retirement is significantly lower than during your working years, the net tax effect remains positive.
Rürup vs. No Rürup: Direct Comparison
What if you invested the same amount directly in an ETF savings plan instead?
- Without Rürup: capital gains subject to Abgeltungssteuer (25% + 5.5% Soli = 26.375% effective)
- With Rürup: no ongoing taxation of gains — but pension fully taxable on withdrawal
When does Rürup pay off?
Rürup makes sense when your current marginal tax rate is significantly higher than in retirement. At 42% now and 20% in retirement the advantage is substantial. At a low marginal rate, a direct ETF investment is often comparable or better.
Calculate Your Rürup Pension Now
Use our free Rürup pension calculator to compute in seconds:
- Capital at retirement and monthly gross pension
- Annual and total tax savings
- Net pension after deferred taxation
- Direct comparison with/without Rürup
Calculate Your Rürup Pension
Go to Rürup Pension Calculator →Frequently Asked Questions
Who benefits from the Rürup pension?
Primarily self-employed individuals and freelancers without statutory pension insurance, and high earners with a marginal tax rate of 42% or 45%. The higher your current tax rate compared to retirement, the more attractive the Rürup pension becomes.
Can I exit a Rürup pension?
Not fully. You can suspend contributions but cannot cancel and withdraw the capital — unlike an ETF account. The capital is locked until retirement age.
How does Rürup differ from Riester?
Riester works through direct government allowances and is mainly suited for employees with children. Rürup works through tax deductions and is better suited for self-employed individuals without child allowances. Use our Riester pension calculator to compare.
Does the tax deduction only apply to self-employed people?
No. Employees can also deduct Rürup contributions. However, the Rürup ceiling (€27,566) competes with statutory pension contributions — employees therefore often have less room to deduct.