Rürup-Rente (Basisrente)
Definition
A tax-advantaged private pension for self-employed and high earners in Germany, offering high tax deductions.
Key Takeaways
- Rürup-Rente is a tax-advantaged German pension designed for the self-employed and high earners.
- Contributions are 100% tax-deductible up to an annual cap of €27,566 in 2026.
- Cannot be withdrawn as a lump sum; must be paid out as a lifelong monthly annuity.
- Assets are protected from insolvency and unemployment benefits (Bürgergeld) assessments.
Detailed Explanation
The Rürup-Rente (or Basisrente) is a tax-advantaged private pension scheme in Germany designed primarily for self-employed individuals, freelancers, and high-income earners who do not have access to the statutory state pension system or employer pension schemes.
The main benefit of Rürup is tax deduction. For the 2026 tax year, 100% of contributions up to a maximum cap of €27,566 for single filers (€55,132 for married couples) are tax-deductible. However, the Rürup contract has strict lock-in rules: the pension cannot be paid out as a lump sum, cannot be surrendered or borrowed against, and payouts must be taken as a lifelong monthly pension starting at age 62 or later.