Statutory Pension & Basisrente
Tax-supported base layer that pays a guaranteed income for life.
Layer 1 retirement
Basisrente (Rürup Pension)
Rürup-Rente
One of Germany’s most powerful tax-saving tools for high earners and the self-employed. Since the provider and strategy you choose directly impact your final payout, it pays to compare more than just the monthly premium.
The base layer
What is a Basisrente?
The Basisrente — also known as the Rürup-Rente — is a private retirement contract in the first layer of the German pension system, sitting alongside the statutory state pension. You build up savings during your working years and receive them as a guaranteed lifetime income. Contributions are fully tax-deductible as special expenses (Sonderausgaben), making it especially valuable for people with a higher taxable income who want to plan for the long term.
Company Pension & Riester
Workplace pensions arranged through your employer.
Private pension & investments
Flexible savings and investment plans you set up yourself.
Learn moreThe right fit
Who benefits most
The Basisrente tends to suit people with a high taxable income or without an employer pension behind them, where the tax relief and the lifetime income do the most work.
Top earners
Once the usual allowances are used up, a Basisrente adds another way to lower a high taxable income while building retirement savings.
IT professionals
Strong salaries and frequent job moves make a portable, tax-efficient pension that you keep control of a natural fit.
Engineers
Steady higher earnings leave room to save more, and the tax relief makes that saving go further each year.
Doctors
Many doctors combine a high income with an irregular career structure, so a flexible and tax-supported retirement plan suits them well.
Business owners
Owners often fall outside the statutory pension, so the Basisrente offers a tax-deductible route to a reliable retirement income.
Freelancers
Without an employer pension behind them, freelancers use the Basisrente to build their own lifetime income with tax support.
Self-employed professionals
Income that varies pairs well with contributions you can adjust, alongside the deduction that lowers the yearly tax bill.
Why people choose it
Main advantages
Tax deductions
Contributions count as special expenses (Sonderausgaben) and are deductible up to a high yearly limit, which lowers your income tax during your working years.
Lifetime income
The savings are paid out as a guaranteed monthly pension for as long as you live, so the income does not run out.
Flexible contributions
You can usually pause, reduce or raise what you pay, which helps when your income changes from one year to the next.
ETF investing
Many contracts let your contributions grow in ETF portfolios or other funds, so you can aim for long-term returns inside a tax-supported wrapper.
Insolvency protection
Basisrente savings are generally protected in insolvency and largely shielded while you claim unemployment support, which keeps the money set aside for retirement.
Long-term security
Because the money is committed to retirement, it builds a dependable base layer that sits underneath the state and workplace pensions.
See it for yourself
Estimate your yearly tax saving
Move the sliders to your own numbers and see roughly how much a Basisrente could lower your income tax this year. The figure updates as you go.
Your gross salary before tax. We use it to estimate your tax rate and your statutory pension contributions.
That is €6.000 a year into your Basisrente.
Estimated yearly tax saving
€2.531per year
About 42% of this year’s deductible contribution comes back through your tax return, so a €6.000 contribution costs you roughly €3.469 after tax.
- Yearly deductible limit
- €30.826
- Statutory pension (you + employer)
- -€14.880
- Maximum deductible Basisrente
- €15.946
- Your contribution this year
- €6.000
- Counted as deductible
- €6.000
- Tax saving
- €2.531
- Net cost after tax
- €3.469
Your contribution is above what you can still deduct this year (€15.946), so only that part lowers your tax.
This is an estimate based on the 2026 income tax tables and contribution limits, and your real saving depends on your full tax situation. For employees, both your own and your employer’s share of the statutory pension already use part of the yearly limit, so we subtract them to show what a Basisrente can still add. We base this on the single income you enter, so for a couple where both partners earn we can work through the combined limit with you. Church tax and the solidarity surcharge are not included here. As your Versicherungsmakler (insurance broker) we can talk this through with you, and your tax adviser can confirm the precise figure for your situation.
Look past the premium
Important things to consider
No two Basisrente contracts are identical. The monthly premium is the easiest number to compare, and on its own it says little about the pension you will actually receive. These contracts differ in ways that matter just as much over thirty or forty years.
The number you compare first
Monthly premium
Useful as a starting point, and only one part of the picture.
What also shapes the pension you actually receive
- Costs
- Guaranteed pension factor
- Pension guarantee period
- Investment options
- Contribution flexibility
- Death benefits
- Guarantee concept
- Financial strength
How the money grows
Not every pension contract invests the same way
Insurers offer different investment concepts inside a Basisrente, and each one balances growth against security in its own way.
Traditional investments
klassische Anlage
A cautious approach that leans on the insurer’s guarantee assets for stability.
ETF portfolios
Low-cost index funds that track broad markets for long-term growth.
Actively managed funds
Funds where managers select holdings with the aim of beating a benchmark.
Sustainable investments
nachhaltige Anlage
Portfolios built around environmental and social criteria.
Diversified concepts
Mixes that spread money across several approaches to balance growth and security.
Depending on the insurer, some products also include exposure to real assets such as infrastructure or property through professionally managed funds. There is no single best approach here. The right mix depends on your goals, your time horizon and how comfortable you are with ups and downs in value.
For illustration
Example pension concepts
These are examples only, listed to show how providers can differ. They are not a recommendation, and no single provider is best for everyone.
Example concept
Condor
- Flexible ETF concepts
- Competitive cost structure
- Suitable for long investment horizons
Example concept
LV 1871
- Wide investment flexibility
- Modern retirement concepts
- Flexible contribution options
Example concept
Nürnberger
- Different guarantee concepts
- Strong retirement planning options
- Flexible contract features
These examples are provided for illustration only. The right solution depends on your personal goals, tax situation, retirement plans and investment preferences.
A fair comparison
What should you compare?
These are the points we weigh up with you, so you can judge a contract on what it delivers over decades rather than on the premium alone.
| What to compare | Why it matters |
|---|---|
| CostsKosten | Charges are taken from your contributions and returns every year, so lower and clearer costs leave more of your money working toward your pension. |
| Guaranteed pension factorgarantierter Rentenfaktor | This fixes how much monthly pension each €10.000 of capital will buy, so a guaranteed factor protects you from a weaker conversion rate at retirement. |
| Investment optionsAnlageoptionen | The funds and concepts on offer decide how your money can grow, from ETF portfolios to more cautious approaches. |
| Pension guarantee periodRentengarantiezeit | If you die soon after the pension starts, this period keeps payments going to your family for an agreed number of years. |
| Contribution flexibilityBeitragsflexibilität | The ability to pause, lower or raise your payments matters when your income changes between years. |
| Death benefitsHinterbliebenenschutz | Options to protect a spouse or children differ by contract and shape what happens to your savings if you die before or during retirement. |
| GuaranteesGarantiekonzept | Providers balance security and growth in different ways, so the guarantee concept affects both your risk and your potential return. |
| Financial strengthFinanzstärke | An insurer you rely on for decades should be financially solid, which external ratings help you judge. |
| Customer serviceService | Clear communication and support in English make a real difference over a contract that can last thirty years or more. |
A worked example
Example customer journey
A simple illustration of how a Basisrente can fit into one person’s plan, from first contribution to retirement.
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Step 1
The profile
A software engineer on a salary of €95.000 who already uses the usual allowances and wants to lower a high tax bill while saving for later.
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Step 2
Monthly contribution
Around €500 a month into a fund-linked Basisrente, adjustable in the years when income or plans change.
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Step 3
Annual tax saving
Roughly €2.500 back through the yearly tax return, depending on the personal tax rate.
-
Step 4
At retirement
A guaranteed monthly pension for life from the chosen start age, on top of the state pension and any workplace pension.
Example only. Individual figures depend on your salary, tax rate, contract and chosen provider.
Good to know
Questions people ask us most
Plain-English answers to what comes up in almost every first call about the Basisrente.
The Basisrente, also called the Rürup-Rente, is a private retirement contract that sits in the first layer of the German pension system alongside the state pension. You build up savings during your working life and receive them later as a lifetime monthly pension. In return for strong tax advantages, the money is committed to retirement, so it pays out as income rather than as a lump sum.
Yes. Employees at any income level can take out a Basisrente, and it is often considered by higher earners who have already used their other allowances and want an additional way to lower their taxable income while saving for retirement.
Yes. Freelancers and self-employed professionals often look at the Basisrente because many of them are not part of the statutory pension, so it gives them a tax-supported way to build a lifetime retirement income.
Most contracts let you pause or adjust your contributions if your situation changes, which suits income that varies from year to year. The exact rules depend on the provider, so it is one of the points worth checking before you sign.
A Basisrente cannot be surrendered for a cash payout the way some other contracts can, because the tax benefits come with the condition that the money stays for retirement. You can usually stop paying and leave the balance invested until it pays out as a pension, and we explain what each provider allows.
No, you cannot take the savings out as a lump sum. The balance is paid to you later as a regular lifetime pension rather than as a one-off withdrawal, which is the trade-off for the tax relief during the saving years.
Many providers offer fund-linked Basisrente contracts where your contributions go into ETFs or other investment funds. The range of funds and the way the contract balances growth against guarantees varies between insurers, so the investment options are worth comparing closely.
The pension factor (Rentenfaktor) converts your saved capital into a monthly pension. For every €10.000 of capital it tells you how many euros of monthly pension you receive. A guaranteed pension factor gives you certainty about that conversion in advance, so it is an important number to compare between contracts.
Costs are deducted from your contributions and your investment returns over many years, so even a small difference in charges can add up to a meaningful gap in your final pension. Looking at the cost structure alongside the guarantees and the investment options gives you a fairer picture than the premium alone.
Your Basisrente stays in place if you leave Germany, and it pays out as a pension later regardless of where you live. There are tax points to think through in both Germany and India, so it is worth planning the move with someone who understands both sides before you go.
Your next step
Find the right Basisrente for your goals
Choosing a pension contract involves much more than the tax saving. Providers differ in their investment concepts, their guarantees, their costs and the retirement options they offer. As your Versicherungsmakler (insurance broker) we compare a broad range of providers and help you find the contract that fits your personal goals.
Find the right Basisrente for your goals. Let’s keep it simple.
No German required. Tell us about your income, your tax situation and your retirement plans, and we will compare suitable Basisrente options with you in English.
NEOdirect · Insurance broker for expats in Germany