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Ruerup Pension Calculator

Calculate your tax savings with the German Ruerup pension (Basisrente). Ideal for self-employed individuals and high earners.

EUR
%

Tax Savings per Year

€2,520.00

Deductible

€6,000.00/year

Estimated Pension

€1,620.00/mo.

Total Tax Savings

€68,040.00

Annual Contribution
€6,000.00
Tax-Deductible
€6,000.00
Tax Savings/Year
€2,520.00
Total Tax Savings
€68,040.00

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What Is the Ruerup Pension?

The Ruerup pension, also known as the Basisrente (basic pension), is a tax-advantaged retirement savings plan introduced in Germany in 2005. Unlike the Riester pension, it does not provide government allowances but instead offers tax deductions: your contributions can be deducted as special expenses on your German tax return. It was primarily designed for self-employed individuals but is also available to employees. All values are in EUR.

How This Calculator Works

Enter your desired monthly contribution and your personal marginal tax rate. The calculator determines how much you can deduct from taxes each year, your resulting tax savings, and an estimated monthly pension. The calculation accounts for the current maximum deductible amount and the full deductibility in effect since 2023.

Tax Benefits of the Ruerup Pension

Since 2023, 100 percent of your contributions are tax-deductible, up to the current maximum of EUR 27,565 per year. At a marginal tax rate of 42 percent, fully utilizing this allowance saves over EUR 11,500 in taxes per year. Over 27 years, this adds up to total tax savings of more than EUR 310,000. Note, however, that pension payouts in retirement are fully subject to income tax.

Ruerup vs. Riester: Which Is Better?

The Ruerup pension is best suited for self-employed individuals who cannot use Riester, and for high earners with top marginal tax rates. Riester excels for families with children due to generous child allowances. Both forms can complement each other. Important: Ruerup contracts cannot be canceled or used as collateral. The capital is locked until retirement begins. Those who value flexibility should consider supplementing with an index fund savings plan.

Frequently Asked Questions

The Ruerup pension (also called Basisrente or basic pension) is a tax-advantaged private retirement plan in Germany, introduced in 2005. Unlike the Riester pension, it works through tax deductions rather than government allowances. Contributions are tax-deductible, but pension payouts are fully taxed in retirement. All amounts are in EUR.
Since 2023, 100 percent of contributions are tax-deductible, up to a maximum of EUR 27,565 per year (2026 figure, adjusted annually). For married couples, the maximum doubles. Your actual tax savings depend on your marginal tax rate.
Ruerup is especially attractive for self-employed individuals and freelancers who do not pay into the public pension system and are not eligible for Riester. It is also beneficial for high earners in top tax brackets, as the tax savings increase with the marginal tax rate.
The Ruerup pension is generally not inheritable and cannot be converted to a lump sum. In case of death, a survivor's pension may be paid to the spouse or children entitled to child benefit, if agreed in the contract. Otherwise, accumulated contributions go to the insurance pool.

All calculations are for general informational purposes only. Not financial, tax, or legal advice. No guarantee of accuracy. Use at your own risk. Full disclaimer