Conditions and restrictions
The Rürup pension is subject to conditions and if the Rürup pension is to be completed as a self-employed person, this applies a little more. First, it should be noted that it is basically attainable for anyone who has an income. However, the Rürup pension is far from having a same or standard application for all people.
Conditions apply to the taxability:
- The insurance contract must be certified by BZSt (Federal Tax Office)
- The basic pension may not begin before the age of 62
- The contributions are - with the exception of the defined subscription right - not inheritable
- The contributions are not transferable and can not be sold
Rürup pension contracts are contracts that you enter into with a private company. There are fees, administration fees - of course. The Rürup pension is expressly not a state benefit. You also have to pay for other services out of pocket. If you deposit in other pensions (Riester, pension schemes, etc.), then the maximum deductible maximum rate is reduced.
Rürup pension for the self-employed: when is it worthwhile?
Now comes the question of when the Rürup pension is worthwhile for self-employed. Well, it has already been noted that thanks to the generous deductibility of the amounts, there are nice tax advantages. This makes the Rürup pension a good model when it comes to saving taxes with private pensions. However, it should also be noted that from the year 2040 all amounts paid out will be taxed at 10%. So what does that mean?
Well, it means that a Rürup pension pays off for anyone who is about to retire or anyone who earns enough to make any tax savings feel right. The problem with the Rürup pension is that it is tax deductible but it is eaten up again, depending on the amount and duration of the pension. A Rürup pension is worthwhile only for high earners, as the tax savings already mean a big advantage. In addition, the contracts at Rürup-Renten are structured in such a way that increases in the value of the capital (for example through good investment in the market) benefit the policyholder. This means that with larger deposit amounts you can also achieve nominally better returns and accordingly the payouts are better in the end.
Furthermore, the Rürup pension for the self-employed and it’s benefits really work for you more if you are very healthy and the people in your family generally very old. The longer you live, the more you get from the payouts - after all, it's a lifetime annuity. So, if someday you got paid more than you paid, your insurer still has to pay pension contributions. In addition, the Rürup pension is primarily intended for people who find no place in the statutory pension insurance or in the Riester system or in a company pension scheme. As a self-employed person, you should belong to their target group. However, it is still true that a Rürup pension is now mathematically meaningless if you can not pay the maximum contributions.
However, since this refers to the EUR22,000 euros (twice as much for married couples), the retirement payment makes sense if at least this sum of income is taxable. Of course, this depends on what else you take in terms of precautionary measures. But the Rürup pension has a few small, fine advantages that will be explained again at the end.
What services does the Rürup pension offer?
There are additional insurance policies as part of the Rürup pension. The contributions also have a tax advantage. The most interesting additional benefits are probably the survivor insurance and disability insurance. The former makes it possible to register a spouse or registered partner (and their children) as the beneficiary of the pension in the event of death. The occupational disability insurance must have a lower contribution portion than the pension itself. In addition, the claim can be lost if no more contributions are paid.