A Rürup pension (Rürup-Rente) is a tax-advantaged basic pension (Basisrente): a lifelong retirement income whose contributions you can deduct from your taxes. For self-employed people and academics with high incomes, it is one of the few forms of retirement provision where the tax saving takes effect in the year you pay in. Whether it suits you depends less on the product than on your income, your mandatory contributions and how much flexible money you need.
Short answer: For 2026, contributions to a Rürup pension of up to 30,826 euros a year (single assessment) can be deducted as retirement provision expenses, at 100 percent. The later pension is taxed in part: for a pension starting in 2026, 84 percent of it is taxable. The benefit grows with your personal tax rate. Stand: October 2026.
The key points at a glance
- The Rürup pension is a basic pension. It is paid out for life and is not available as capital.
- For 2026 the limit is 30,826 euros for single taxpayers and 61,652 euros for joint assessment (Stand: October 2026).
- The deduction reduces your income tax. It only makes a real difference if your income is clearly above the basic allowance.
- The pension is taxed on a deferred basis. For a pension starting in 2026, 84 percent of it is taxable.
- Mandatory contributions to statutory pension insurance count toward the same limit. Employees therefore often have less room.
What a Rürup pension actually is
The Rürup pension belongs to the basic pensions under section 10 (1) no. 2 of the German Income Tax Act (Einkommensteuergesetz, EStG). The legislator introduced it so that people without compulsory statutory pension insurance could also build tax-advantaged retirement provision. You pay contributions to a provider, which pays you a monthly pension from an agreed point in time, usually for the rest of your life.
The form of payout is decisive. A lump-sum payment or a surrender, as with some other contracts, is not provided for under a basic pension. Payouts start at the earliest when you turn 62. If you need money before then, you have to plan for other funds. This is the most important difference from an ETF savings plan, which you can sell at any time.
How much you can deduct
Contributions to a basic pension count as retirement provision expenses (Altersvorsorgeaufwendungen). They share a common limit. This limit also includes the mandatory contributions to statutory pension insurance that employees pay, as well as contributions to other basic provision schemes such as a professional pension fund (Versorgungswerk). For 2026 the limit is 30,826 euros for single taxpayers and 61,652 euros for joint assessment. Within this limit, contributions are 100 percent deductible for 2026. The governing provision is section 10 (3) EStG, status October 2026.
What the deduction is worth in euros
Assumption for the following example: you are self-employed and not compulsorily insured in statutory pension insurance. Your personal marginal tax rate is 35 percent, and other retirement provision expenses are minimal. The annual tax saving is then the contribution multiplied by the marginal tax rate. The solidarity surcharge and church tax are not included.
| Contribution per month | Contribution per year | Tax saving at 35 percent (assumption) |
|---|---|---|
| 100 euros | 1,200 euros | 420 euros |
| 300 euros | 3,600 euros | 1,260 euros |
| 500 euros | 6,000 euros | 2,100 euros |
The saving arises in the year you pay in, while the pension is taxed later. Whether the benefit pays off in the end depends on your tax rate in retirement. No one can make a reliable statement about that today. With clearly stated assumptions, you can still prepare the calculation well and adjust it later.
Deferred taxation: what arrives in retirement
The pension is not entirely tax-free. For a pension starting in 2026, 84 percent of it is taxable. The taxable share depends on the year in which the pension begins (section 22 EStG). Assumption for this example: your basic pension is 1,000 euros a month. Then 840 euros of it are taxable and the rest stays out of account. How much income tax is due depends on your other income in retirement. Contributions to health and long-term care insurance can also apply to the pension. These items belong in your overall plan.
Who the Rürup pension usually suits
- You are self-employed or work as a freelancer and pay no mandatory contributions to statutory pension insurance.
- Your taxable income is clearly above the basic allowance, so the deduction has a noticeable effect.
- You want to secure part of your retirement provision as a lifelong pension and can keep up contributions for many years.
- You already have reserves for emergencies and do not need the money before retirement.
For whom it often does not suit
- Your income is low. Income below the basic allowance of 12,348 euros (2026, section 32a EStG) is not taxed, so a deduction brings no saving there.
- You need flexibility and want to be able to use the money before retirement.
- You already pay high mandatory contributions, for example to statutory pension insurance or a professional pension fund. The limit is then used up more quickly.
- You have no emergency fund yet. It belongs on a flexible account before any long-term commitment. More on this in the guide Emergency Fund (Notgroschen) During Your Studies: How Much and Where.
What to check in the contract
A contract is more than the monthly contribution. Compare the total costs over the term, the guaranteed values, the pension formula and the survivors’ protection. Also check how the provider handles contribution adjustments and pension increases.
- Acquisition and administration costs, which can weigh especially heavily in the first years
- Guaranteed pension factor and possible surplus participation
- Rules on contribution-free status and termination
- Survivors’ benefits and optional add-on modules
The basic pension is not disability insurance. It pays in old age, not in the case of occupational disability. If you want to protect your ability to work, you need a separate solution. An overview is in the guide Disability Insurance for Academics: What Is Different.
Frequently asked questions
Can I take out a Rürup pension as a student?
Yes, students can also take out a basic pension. However, the tax deduction only helps if you have taxable income. If your taxable income is below the basic allowance of 12,348 euros (2026), no tax is due that you could reduce through the deduction. For students, a basic pension is therefore usually not the first step.
Can I get Rürup contributions back later as capital?
No. The basic pension is designed as a lifelong pension, and a payout as capital is not provided for. What happens on termination or contribution-free status is set out in the provider’s contract terms. Read these rules carefully before you sign.
Is a Rürup pension better than an ETF savings plan?
This cannot be answered in general terms. The basic pension offers a tax deduction and a lifelong pension, but its flexibility and cost structure are usually weaker. An ETF savings plan is more flexible and has no payout restriction, but offers no tax deduction. You can compare both options with a calculation based on your income and goals. A comparison is in the guide Pension depot or ETF savings plan: a comparison for new graduates.
Do I have to pay tax on the Rürup pension?
Yes, the pension is taxable, but only with the share that corresponds to the taxable portion. For a pension starting in 2026, that share is 84 percent. The pension is included in your income tax assessment. How high the tax is depends on your other income in retirement.
Does a Rürup pension replace disability insurance?
No. The Rürup pension pays in old age. Disability insurance pays out if you can no longer work for health reasons during your working life. Some basic pensions offer an add-on that complements this protection, but it does not replace it in every case. Check whether you need separate protection.
What to do now
- Determine your taxable income for the current year and your marginal tax rate.
- Check how much of the limit is already used up by mandatory contributions.
- Compare offers by total costs, guaranteed values, pension formula and survivors’ protection, not just by the monthly contribution.
- Have the calculation checked by a tax adviser before you sign. A personal consultation at Academycon is described under So arbeiten wir (in German).
Related reading
- Retirement Provision for Students: Starting Early With Small Amounts
- Retirement Planning for Academics: The Right Order
- Pension depot or ETF savings plan: a comparison for new graduates
- Working Student and Pension Insurance: Contributions and Entitlements
- Self-Employed After Studies: Health Insurance and Pension
Sources: Income Tax Act (EStG), section 10 (basic pension, limit), status October 2026; Income Tax Act, section 22 (taxable portion), status October 2026; Income Tax Act, section 32a (basic allowance 2026), status October 2026.
Stand: October 2026. This guide is general information and not individual advice.
