The Rürup pension, also known as the basic pension, opens a golden door for self-employed workers and freelancers towards significant tax benefits. This form of retirement savings is not only flexible but also fiscally attractive, especially for those who do not fall under the public pension scheme. In this article, we will explore how the Rürup pension works and show for whom it is particularly suitable. Discover how to optimize your retirement savings with smart planning.
Tax Planning and Benefits of the Rürup Pension for Freelancers
The Rürup pension has proven to be one of the most attractive retirement savings options for self-employed workers and freelancers. Its structure, based on flexible contributions and significant tax advantages, aims to provide these professional categories with a solid foundation for retirement, particularly for those outside traditional pension systems.
The functioning of the Rürup pension can be described through its two main phases: the accumulation phase and the payout phase. Contribution payments during the accumulation phase can be fully deducted as extraordinary expenses up to annual maximum limits. This means that high-income earners can significantly reduce their taxable income. For the year 2025, for example, the deductible amount is up to 29,344 euros for singles. This offers those earning high salaries the opportunity for significant tax savings during their working years.
A crucial aspect of the Rürup pension is the principle of deferred taxation during the pension phase. Pension payments that are disbursed will be taxed at the applicable personal tax rate, presumably lower. This approach allows for strategic tax planning, as the pension income often results in being lower than during active working years. Until 2058, the taxable percentage of the pension will gradually increase to 100%, facilitating long-term planning.
Particular emphasis should be placed on the flexibility that the Rürup pension offers. Self-employed workers and freelancers can freely determine the amount of their contributions and adjust them to variable financial circumstances. This individuality makes the Rürup pension an attractive and at the same time flexible method to ensure long-term financial security in old age.
Overall, the Rürup pension represents a valuable complement to other pension provisions. It aims to meet the specific life planning and income patterns of self-employed workers and freelancers, providing a balance between short-term tax benefits and long-term pension savings.
Optimal Pension Plan: Flexibility and Target Groups of the Basic Pension
The Basic Pension, often referred to as the Rürup Pension, plays a crucial role in retirement savings, especially for those who have to take responsibility for their retirement planning. Unlike traditional pension models, which are often tied to legal regulations, the basic pension primarily targets self-employed workers and freelancers. These individuals generally do not have access to the public pension system and depend on individual retirement savings models.
Additionally, even high-income employees who wish to benefit partly from generous tax deductions can be attracted to the basic pension. It also offers public officials and partners an attractive way to best plan their pension through specific tax benefits.
A distinguishing feature of the basic pension is its flexibility in contribution payments. These can vary depending on individual financial situations and are not subject to rigid contribution requirements. This flexibility represents a clear advantage for self-employed workers, whose income is inherently variable. The ability to deduct contributions as extraordinary expenses can further lead to significant tax advantages.
Another advantage of the basic pension is its insolvency-protected investments. This means that, in case of financial difficulties, such as bankruptcy, the accumulated pension is usually protected from seizures, thus offering long-term security.
For self-employed workers and freelancers, the basic pension serves as a substitute for legal pension claims, which would otherwise be difficult to achieve. The tax deductibility of their contributions allows particularly high-income individuals to benefit from significant tax savings, alleviating their burden during their working lives while enabling future planning. These aspects make the basic pension one of the most flexible and secure forms of retirement savings, particularly advantageous in financially unstable times.
Without the rigid limits of legal pension obligations, the Rürup pension allows for tailored retirement planning, adapted to individual life situations. These features as a whole make it an indispensable tool for anyone who wants to take personal responsibility for their retirement savings, especially when traditional models and state-subsidized options are not accessible or sufficient.