Work & family · Jurisdiction DE

The German basic pension (Rürup), explained

The German basis pension (often called Rürup) is a private-pension frame, often mentioned alongside self-employment. Finmon does not decide whether you are eligible or whether it suits you.

In more detail

A typical legal pattern: contributions can be tax-relevant while you pay in; later benefits are often taxed when paid. Amounts, deduction caps and payout form follow German tax and certification law, not a Finmon calculator. The basis pension is defined in Income Tax Act section 10 (1) no. 2 (b).

Background

This module does not say that Rürup is “the right thing for the self-employed”, and it is not a UK SIPP. Availability, costs, guarantees, and tax effects are case by case. This module only explains the scheme. It does not recommend a product and it does not test whether it suits you.

An example

You become self-employed and read that Rürup is “the product”. The frame exists in Germany. That does not replace a review of suitability, cost and tax with an independent source.

A common misconception

The self-employed should take out Rürup through Finmon.

Rürup is a German frame. Finmon checks neither duty nor suitability.

Source: EStG § 10 (Basisrente, Absatz 1 Nummer 2 Buchstabe b). Last reviewed: 2026-10-31. Editorially reviewed on 2026-10-31. Next review 2027-10-31. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.