The Rürup Pension, also known as the basic pension, has established itself as a beacon for the pension provision of self-employed workers and freelancers. Thanks to its significant tax advantages and adaptability to individual financial situations, it offers a tailor-made solution for those who do not have access to legal pension schemes. This article highlights the tax advantages and explains why the Rürup Pension is particularly suitable for self-employed workers lacking legal pension protection. Dive in to understand how this form of pension can secure your financial future.
Strategic Tax Advantages of the Basic Pension for Self-Employed Workers
The basic pension, known as the Rürup Pension, is a central tool for self-employed and freelance workers to optimize their pension planning with attractive tax benefits. A deep dive into the tax advantages of this pension provision shows how strategic decisions can lead to a significant reduction in tax burdens.
One of the main attractions is the deductibility of extraordinary expenses. Contributions paid into the basic pension can be deducted as extraordinary expenses on the income tax return. This significantly reduces taxable income and, therefore, proportional tax obligations. Especially in 2025, singles will benefit from a maximum amount of up to 29,344 euros, while married couples can deduct up to 58,688 euros. These generous limits particularly provide self-employed persons, who often declare high total incomes, with substantial relief.
The flexibility in managing contributions is another compelling advantage. Self-employed individuals often have irregular incomes, which is why it is beneficial that the amount of contributions can be variable. This allows taxpayers to cover lean years with lower amounts and effectively direct savings from better years towards retirement provision.
During the subsequent payment phase, self-employed workers also enjoy specific advantages. Based on deferred taxation, pension payments are only taxable when reaching retirement age. The taxable portion of the pension increases annually by 0.5% until full taxation in 2058. This corresponds to a period when many may benefit from a potentially lower tax rate, as taxable income in retirement often turns out to be lower.
Another notable feature of the basic pension is its asset protection. This ensures that the pension is protected in the long term regardless of state redistribution processes. Furthermore, the basic pension offers a lifetime payment guarantee, providing financial security in old age. The insolvency protection also proves advantageous, as rights during the accumulation phase are protected from creditors.
In summary, the basic pension is not just a way to reduce taxes during the working phase but also ensures stability in retirement. Particularly for self-employed individuals, this represents a strategically valuable combination of tax advantages and long-term financial security.
Foundation of Provision: Why the Rürup Pension Opens New Doors for Self-Employed Workers
The basic pension, better known as the Rürup Pension, has established itself as a particularly attractive component of pension provision for self-employed workers who do not contribute to the legal pension system. This group of professionals, who rely exclusively on their private pensions, benefits from a series of unique advantages offered by the Rürup Pension.
The tax advantages of the Rürup Pension are a fundamental factor. The ability to deduct contributions as extraordinary expenses has a positive effect on taxable income. Particularly for self-employed individuals with high incomes, this leads to a significant reduction in the tax burden during the accumulation period. This savings allows taxpayers to make their pension provision more flexible and financially efficient.
Another distinctive feature of the Rürup Pension is the flexibility in contribution payments. Unlike the legal pension system, there are no fixed minimum contributions, meaning self-employed individuals can adjust their payments based on their current financial situation. This creates an adaptability that can prove invaluable, especially in a volatile business environment.
We also add the protection in case of insolvency of the accumulated capital. In the event of financial turmoil, the assets in the Rürup Pension remain intact, as they are usually protected from foreclosure and insolvency. This security provides a reassuring cushion that allows self-employed workers to have both a forward-looking and reassuring view of their pension provision.
Moreover, the Rürup Pension offers peace of mind and stability, ensuring a lifetime pension. This continuous source of income guarantees long-term sustenance in old age and is a reliable pillar to count on.
Finally, for many self-employed individuals, the Rürup Pension replaces the legal pension system, as it provides a sustained, effective, and secure way to save funds for retirement. Even though the pension must be taxed later, this generally turns out to be advantageous, as the personal tax rate in retirement is often lower than during the working phase.
Thus, the Rürup Pension is an ideal solution for self-employed individuals, especially for those with high incomes, to plan effectively and with tax incentives for their retirement. It offers tailored flexibility and security that far exceeds traditional models and therefore represents a smart alternative for private pension provision.