FAQ

Consider:

✅ Guaranteed vs. fund-based plans (traditional vs. investment-linked).

✅ Tax benefits vs. payout taxation (personal income situation).

✅ Flexibility in contributions (adjustable premiums).

Yes, it is common to combine the Basisrente with:

✅ Statutory pension (DRV) for employees.

✅ Private pension plans for more flexible retirement savings.

✅ Riester pension for state subsidies (if eligible).

There is no fixed minimum, but to maximize tax benefits, contributions should be aligned with annual taxable income.

Yes, if they are taxable in Germany. However, if they move abroad before retirement, taxation depends on double taxation agreements.

❌ No early withdrawals – funds are locked until retirement.

❌ Payouts are fully taxable in retirement.

❌ No inheritance or transfer to heirs, unlike other private pensions.

✅ Significant tax benefits during the contribution phase.

✅ Protected from garnishment (cannot be seized by creditors).

✅ Flexible contribution amounts – can be adjusted yearly.

• Contributions are tax-deductible (up to €27,566 in 2024 for singles, €55,132 for married couples).
• Payouts are taxable in retirement, but often at a lower rate.
• Payments start at retirement age (67) and are non-transferable (no lump-sum withdrawal possible).

✅ Self-employed and freelancers who do not pay into the state pension system.

✅ High earners who want to reduce taxable income through pension contributions.

✅ Employees looking for additional retirement savings beyond the statutory pension.

The Basisrente, also known as the Rürup pension, is a tax-advantaged private pension plan designed for self-employed individuals, freelancers, and high-income earners who are not covered by the statutory pension system.