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Why pay into a Rürup pension before 31 December?

In short

Why? Because German tax only counts what leaves your account within the calendar year. If you pay into a Rürup pension before 31 December, it reduces your 2026 tax; paid in January, it only helps in 2027. In 2026 you can deduct up to EUR 30,826, or EUR 61,652 as a married couple, at 100 percent. It suits high earners with money they will not need until retirement.

Why pay into a Rürup pension before 31 December?

What it costs

Statutory values for 2026 and a guide figure for the saving.

ExampleTypical range
Maximum 2026, single assessmentEUR 30,826
Maximum 2026, joint assessmentEUR 61,652
Contribution ceiling, miners' pension insurance 2026EUR 124,800 a year
Contribution rates 2026, miners' and general pension insurance24.7 percent and 18.6 percent
Taxable share of the pension if it starts in 202684 percent
Saving on a EUR 10,000 top-up at a 42 percent marginal rateabout EUR 4,200

Maximums, contribution rates and the taxable share are set by law, as of November 2026.

The saving is a guide value from quoting practice (Richtwert aus der Angebotspraxis),

without solidarity surcharge and church tax; your tax adviser can work out the exact effect.

Worked example

Self-employed architect after a strong 2026

He already has a Rürup contract with EUR 6,000 a year and adds a top-up in December. Tax rate and saving are guide values from quoting practice.

Regular contributions 2026EUR 6,000
Top-up, transferred on 18 DecemberEUR 10,000
Total, below the EUR 30,826 maximumEUR 16,000, fully deductible
Marginal tax rate 202642 percent
Extra tax saving from the top-upabout EUR 4,200

After tax the top-up costs him about EUR 5,800. Paid in January, it would only have reduced his 2027 tax.

Why the date matters

Rürup contributions (officially Basisrente) are special expenses for German tax. They are deducted in the calendar year in which you actually pay them. A top-up sent on 20 December shows up in your 2026 tax return; the same amount sent on 3 January belongs to 2027.

This matters most after a strong year. If you are self-employed and 2026 brought high profits, every euro you pay in saves tax at your current high rate. If 2027 is likely to be weaker, the same payment would save less next year.

Do not leave it to the last day. Bank transfers can take a few days, and not every contract accepts extra payments at short notice. Ask your insurer early whether and until when your contract takes a top-up.

How much room you have left

The maximum covers all basic pension provision together: the statutory pension, professional pension schemes (Versorgungswerke) and Rürup. For employees, a large part is already used by compulsory contributions.

In 2026 the general pension contribution is 18.6 percent of gross pay, employer and employee combined. Subtract that from the maximum and you see how much space is left for a Rürup top-up.

Your situation in 2026CalculationRoom for Rürup
Self-employed, not in the statutory pension, singleEUR 30,826 minus EUR 0EUR 30,826
Employee, EUR 40,000 grossEUR 30,826 minus EUR 7,440EUR 23,386
Employee, EUR 60,000 grossEUR 30,826 minus EUR 11,160EUR 19,666
Employee, EUR 101,400 gross or moreEUR 30,826 minus EUR 18,860EUR 11,966
Married couple, both self-employed, joint assessmentEUR 61,652 minus EUR 0EUR 61,652

The price of the tax break

Money in a Rürup pension is locked until retirement. You cannot cancel the contract, borrow against it or take the capital as a lump sum. Only pay in money you are sure you will not need before then.

The pension is taxed later. If it starts in 2026, 84 percent is taxable; from a start in 2058 it is 100 percent. The deal works if your tax rate in retirement is lower than today.

If you might leave Germany

The contract stays in place if you move abroad, and the pension is paid out later. How it is taxed then depends on the tax treaty between Germany and your new country. If you are likely to leave soon and have no German income left to offset, the deduction may be worth little to you.

When a year-end top-up is not worth it

If your 2026 tax rate is low, for example after a weak business year, parental leave or unemployment, the deduction brings little. A payment in January that falls into a stronger tax year can be the better choice.

If you need the money as a business reserve or for emergencies, do not pay it in. A tax saving does not make up for decades without access. And if you have no contract yet, do not sign one in a rush just to beat the deadline.

Step by step

  1. Estimate your 2026 tax rate, ideally with your tax adviser.
  2. Work out how much of the maximum is left after statutory pension or Versorgungswerk contributions.
  3. Ask your insurer whether your contract accepts a top-up and by which date.
  4. Only pay in money you will certainly not need before retirement.
  5. Send the transfer a few days before 31 December and keep the bank statement.
  6. Wait for the insurer's contribution certificate and check it before filing your return.

Checklist

  • 2026 tax rate high enough for the deduction to matter
  • Remaining room within the maximum calculated
  • Top-up allowed under your contract
  • Emergency reserve left untouched
  • Plans to leave Germany taken into account
  • Payment left your account in 2026

Common mistakes

  • Transferring on 31 December and risking that the payment lands in the new year
  • Planning with the full maximum and forgetting your own statutory pension contributions
  • Paying in money you later need for the business or an emergency
  • Signing a new, expensive contract under time pressure
  • Ignoring that the pension will be taxed later

Questions and answers

Frequently asked

Does a payment on 2 January still count for the old year?

As a rule, no.

Special expenses are deducted in the year you pay them, under section 11 (2) EStG.

How much can I pay in and deduct in 2026?

Up to EUR 30,826, or EUR 61,652 for jointly assessed couples, at 100 percent.

Statutory pension and Versorgungswerk contributions count towards this.

Is a top-up worth it for employees?

Sometimes.

Your room is smaller by your statutory pension contributions including the employer share;

at EUR 60,000 gross about EUR 19,666 remain.

Can I pay a single lump sum instead of monthly amounts?

Many contracts allow top-ups or single payments.

Whether yours does, and until when, is in your terms or you can ask the insurer.

Can I get the money back if I need it?

No.

A Rürup pension cannot be cancelled or borrowed against.

The money only comes back as a lifelong pension.

When will I see the tax saving?

With your 2026 tax assessment.

Self-employed people making large top-ups can ask the tax office to lower their advance payments.

Sources

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