Basic pension with tax benefits
Since 2005, there has been the base pension, also known as the "rür-sup pension". Anyone can conclude such a base pension. It pays a lifelong pension, a one-time cash payment or termination of the contract is not possible. It is particularly worthwhile for those who do not pay into the statutory pension insurance or a professional pension fund. This is especially true for self-employed and freelancers. The state has put forward an attractive funding package for the basic pension, so that the pension with a basic pension is also interesting for good earners or persons who want to raise higher amounts for their retirement provision.

Who is the base pension particularly interesting for?

• Self-employed, freelancers – since they usually have no (high) claims from the statutory pension insurance

• Good earner – since tax support in the savings phase is particularly high

• Generation 50plus – because they have little time to retirement and have to make provisions with higher amounts during this time

How does the tax support of a basic pension work?
The promotion of the base pension is very simple. The contributions are 100 percent tax-deductible in the savings phase. In return, the pension is taxed (downstream) if related to retirement age. Here, the legislator has decided to graduate, which is dependent on the year of retirement: those who retire in 2024 have to pay 83 percent of their base pension. Each year, this share increases by 0.5% points, so that the entire base pension only has to be taxed from 2058. Since the personal tax rate is often lower in retirement age than at working-time, the basic pension is worthwhile, especially from tax aspects.

Basic pension facts:

• Lifelong lifetime

• No capital payout or early termination

• Contributions to 100 percent tax deductible as special edition

• The tax maximum amount rises annually, and it was 27,566 euros p.a. (Led) and 55.132 Euro p.a. (married)

• downstream taxation Share of the year of retirement dependent (from 2058 to 100%)

• Freedom of investment, as no gross contribution guarantee is required

The base pension can be useful for savers for various reasons. Tax support is one of the most important aspects. The investment opportunities, by eliminating a mandatory gross contribution guarantee (such as Riester or in the company pension system), also open up attractive investment opportunities with higher returns. Professional advice can check whether and how a basic pension can also fit into the personal pension concept.