All about this insurance: Private pension
Should I take out a German private pension if I might leave Germany?
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Who is the Rürup pension worth it for?
In short
Mainly self-employed people with a high tax rate who plan to stay in Germany. In 2026 contributions are 100 percent deductible up to EUR 30,826 for singles and EUR 61,652 for couples. The price is total inflexibility: you can never get the money back early, cannot cancel, and without an add-on it is not inherited. If you might leave Germany soon, think twice.
What it costs
Tax values for 2026 and a guide figure for the saving.
| Example | Typical range |
|---|---|
| Maximum special expenses 2026, single | EUR 30,826 a year |
| Maximum 2026, married couples and civil partners | EUR 61,652 a year |
| Deductible share since tax year 2023 | 100 percent of contributions |
| Taxable share of the pension if it starts in 2026 | 84 percent |
| Tax saving on EUR 6,000 contribution at 42 percent marginal rate | about EUR 2,500 a year |
Maximums and the taxable share are set by law, as of September 2026. The tax saving is a guide value from quoting practice (Richtwert aus der Angebotspraxis) and depends on your personal tax rate; your tax adviser can work out the exact effect. Taxation after moving abroad depends on the tax treaty.
Worked example
Self-employed designer, 45, high tax rate
This is how the tax benefit works in a single year.
| Contribution to the basic pension | EUR 6,000 |
| Deductible in 2026 | EUR 6,000, the full contribution |
| Marginal tax rate | 42 percent |
| Tax saving | about EUR 2,500 |
| Own cost after tax | about EUR 3,500 |
About EUR 3,500 of your own money becomes EUR 6,000 of pension savings. In return the money is locked until retirement, and the later pension is taxed.
When the Rürup pension really pays off
The whole benefit is in the tax. Since tax year 2023 the Rürup or basic pension (Basisrente) is 100 percent deductible as special expenses, in 2026 up to EUR 30,826 for singles and EUR 61,652 for couples. The higher your tax rate, the more every euro brings.
That suits self-employed people and freelancers who are not in the statutory pension and pay a lot of tax in good years. For employees, the tax office reduces the maximum by their statutory pension contributions, which usually leaves little room.
What you give up
The Rürup pension is the least flexible form of retirement saving. Money paid in is locked until the pension starts. There is no lump sum.
If you can no longer pay, you can only stop contributions. Administration costs continue, and acquisition costs already paid are lost.
| What many expect | What really applies |
|---|---|
| Cancel and get money back | not possible, only stop payments |
| Borrow against it | not possible |
| Pass it on to heirs | only with an add-on that lowers your own pension |
| Lump sum payout | not possible, only a lifelong pension |
| Take it with you when you leave Germany | not possible as cash, the pension is paid out later |
If you are not sure you will stay
This is the point many expats overlook. Unlike some statutory contributions, a Rürup contract is never refunded when you leave. The money stays in Germany until retirement and is then paid as a monthly pension, usually also to an account abroad.
How that pension is taxed then depends on your new country and the tax treaty with Germany. The tax saving you get today can be partly offset later. If you expect to leave within a few years, a flexible savings plan is usually the more honest choice.
Tax now and tax later
What you save today the tax office partly takes back later. If your pension starts in 2026, 84 percent of it is taxable, and that share stays fixed for life.
For each later starting year the share rises by half a point, reaching 100 percent for pensions starting in 2058. The deal only works if your tax rate in retirement is noticeably lower than today.
Step by step
- Estimate your tax rate for this year, ideally with a tax adviser.
- Check how much of the maximum is left for you, for employees after deducting statutory pension contributions.
- Answer honestly whether you will stay in Germany and can spare the money until retirement.
- Only shortlist tariffs with disclosed, low effective costs.
- Choose survivor add-ons consciously and know what they cost.
- Keep the fixed contribution small and add extra payments in good years.
Checklist
- Tax rate high enough for the deduction to matter
- Fixed contribution affordable even in a bad year
- Effective costs of the tariff disclosed and low
- Extra payments possible at any time without changing the contract
- Guaranteed pension factor written into the contract
- Plans to leave Germany considered before signing
Common mistakes
- Seeing the tax benefit and forgetting that the pension is taxed later
- Signing up shortly before leaving Germany and expecting a refund
- Choosing a high fixed payment and having to stop in a bad year
- Adding survivor cover without checking how much pension it costs
Questions and answers
Frequently asked
Can I cancel the Rürup pension?
No. You can only stop payments. The money stays locked and is paid out later as a lifelong pension.
What happens to my Rürup pension if I leave Germany?
The contract stays and the pension is paid later, usually also abroad. There is no refund. How it is taxed then depends on the tax treaty with your new country.
How much can I deduct in 2026?
Up to EUR 30,826 as a single and up to EUR 61,652 as a couple, at 100 percent. For employees the tax office deducts statutory pension contributions first.
Is the Rürup pension inherited?
Without an add-on, no, the capital stays with the insurer's pool. With survivor cover or a guaranteed period it goes to relatives, but your own pension is lower.
Is it worth it for employees?
Rarely. The maximum is reduced by statutory pension contributions, and a company pension is often the better route.
How is the Rürup pension taxed?
If it starts in 2026, 84 percent is taxable. The share rises by half a point per year and reaches 100 percent for pensions starting in 2058.
Sources
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