Rürup Pension Plans for Freelancers and Employees

Saving tax on your way to a pension

Freelancers, self-employed and employees looking for a clever way to save for a pension AND save tax may well find the so-called “Rürup Pension“ attractive.

Since the 1st January 2005 the State has made it possible to offset a good part of a Rürup Pension Plan against tax.

Singles can invest up to €23,712 p.a. and married people up to €47,424 p.a.  either on a monthly basis and/or on a monthly basis with irregular one-off payments into the plan at any time of the year.

From January 2021, up to 90% of the contributions are tax deductible, rising 2% a year up to 100% in 2025.


An unmarried freelancer, 35 years old, earns 60,000 euros a year and decides to invest 500 euros a month into a Rürup plan in 2018. The Finanzamt recognizes 309 euros of this for tax purposes so the client saves 191 euros monthly in tax.

What other advantages are there?
  • It's the only pension plan with tax advantages for freelancers and self-employed
  • Policyholders are protected from insolvency laws
  • Policies cannot be means-tested for Hartz IV applications
  • Additional, irregular payments into the pension can be made at any time
  • Insurance companies offering a Rürup plan must guarantee a life-long pension
  • In case of death of the policyholder, the spouse or children can receive a monthly pension

An important plus point is this is a genuine old age pension plan and not a personal savings plan to buy a new car or things like that! A pension payout cannot begin until at least the 63rd birthday (rule commenced in January 2012).

There are different models depending on your personal wishes. We can also calculate the tax savings you would make in the insurance period and what kind of monthly pension you would draw.

Tip: In many cases, an occupational disability insurance (the German Berufsunfähigkeitsversicherung) is not tax deductible but if combined with a Rürup Pension it IS!