A gap and a lifelong pension
Self-employed or a small statutory pension: an extra lifelong pension can be relevant. Tax effect is the second sentence.
Build
Basisrente (Rürup): tax relief today — lock-in until a lifelong pension
Contributions may be deductible as special expenses under conditions. Capital stays committed until the pension starts; payout is a monthly lifelong pension. The first question is not the marginal tax rate, but whether that lock-in fits the situation.
The trade-off
Tax relief in exchange for lock-in
Basisrente, often called a Rürup pension, exchanges a possible tax advantage today for long-term commitment and a lifelong pension later — not an account that can be emptied at will.
Today
Possible deductibility
Contributions can be claimed as special expenses up to the ceiling — depending on tax, other pension contributions, and the year.
During the term
Capital committed
Money is set aside for the pension. No withdrawal like a brokerage account, no borrowing or lump-sum sale.
Later
Lifelong pension
The value at pension start becomes a monthly pension for as long as the insured person lives. The amount is not known today.
No free lump-sum at retirement
Check fit
When the trade-off may matter — and when another path may come first
No automatic suitability. The matrix on the private retirement page places Basisrente beside other paths.
Worth a look when …
High marginal rate, long hold
A high marginal rate today and no need for the capital before pension start — the deduction can be noticeable but does not replace a liquidity check.
The form is accepted
A monthly pension instead of a lump sum is a conscious choice. The pension amount stays open.
Other paths may come first when …
A lump sum before or in retirement
Home, business, or a pause: lock-in is the central objection. Private pension insurance can allow capital; Basisrente does not.
A free investment account
An ETF or fund account stays available; there is no special-expenses deduction of this kind and no automatic lifelong pension.
Inheritance as capital
Survivor benefits are paid as a pension, not a free sum — clarify that limit before the tax rate leads.
Tax advantage and limited flexibility belong in the decision with equal weight.
Tax effect
Illustration: contribution and marginal rate
Choose a monthly contribution and an illustrative marginal rate. Multiplication only — not a tax return. Runs in the browser.
- Contribution in the year
- €1,200
- Illustrative tax effect
- €504
- Illustrative net burden
- €696
At €100 a month and an illustrative 42.0%: contribution in the year €1,200. Tax effect €504. Net burden €696. Not a promised refund.
Annual contribution above €30,826 (2026 ceiling under section 10 (3) for one person). This illustration does not trim the effect or check remaining room. Assessed together: €61,652.
What the real effect depends on
Marginal rate, ceiling, other pension contributions, employment status, and tax year. The calculator only uses the two values entered.
Legal frame
Deductible today — inside a ceiling
Basisrente contributions can be deducted in full as special expenses up to the ceiling (since 2023). Not a promise at the amount paid.
In 2026: €30,826 for one person, €61,652 assessed together — shared with other pension contributions. Self-employed people outside the statutory scheme often use the full room; statutory pension and professional schemes reduce it.
€30,826 in 2026
€61,652 assessed together
The 2026 ceiling for deducting pension contributions as special expenses — a ceiling, not a recommendation to pay that much.
Assumptions. Section 10 (3) of the Income Tax Act: maximum contribution to the miners’ pension scheme, rounded up to the nearest euro. The ERGO Basis-Rente product flyer, March 2026, names the same figure. Contributions to the statutory pension, a professional scheme, and the tax-free employer share count against it. A single person cannot deduct a €60,000 premium in full in that year. Not tax advice. The German wording is authoritative.
€100 at 42%
~€58 net outlay
In this example, €42 would be tax relief on a €100 contribution. The contribution is paid in full first; any relief comes through tax and only where deductible.
Assumptions. A marginal tax rate of 42%, as in the ERGO Basis-Rente product flyer, March 2026. 100 − 42 = 58. The rate is personal; solidarity surcharge, church tax, and the actual marginal rate can change it. Only where the contribution is deductible within the cap. Not tax advice and not a promise. The pension is taxed later. The German wording is authoritative.
€60,000 single premium
Net outlay ~€36,000
Illustration assumes 40% tax on the full premium. Initial monthly gross pension about €314; at 30% tax in retirement, net pension about €220.
Assumptions. Contract at age 60, five years of deferral, ERGO Basis-Rente Balance, 100% MEAG AktienGlobal, assumed return of 6% a year, annual increase 0.7%, ten-year guarantee period. Marketing information, March 2026. The 6% is an illustration assumption, not a promise. Past performance is not an indicator of future performance. Funds can fall. About €314 and about €220 are rounded figures. 2026 cap €30,826 (single) and €61,652 assessed together. A €60,000 premium is not fully deductible for a single person in that year. Not tax advice. The German wording is authoritative.
€25
Minimum monthly contribution; single premium from €2,500 (ERGO Basis-Rente flyer, March 2026).
62–85
Pension start after the 62nd birthday, at the latest at 85.
€30,826
2026 ceiling for one person. €61,652 assessed together.
Lifelong
Paid only as a monthly pension — no lump-sum option like private retirement provision.
Minimum contribution, pension ages, and payout form: ERGO Basis-Rente product flyer, March 2026. Ceiling: section 10 (3) Income Tax Act. Conditions of insurance govern. Not tax advice. The German wording is authoritative.
General information, not tax advice. For individual figures, ask a tax adviser.
Commitment over the years
Illustration: contributions and an assumed rate
Monthly contribution, optional start amount, period, and rate from 0% to 18%. Contributions and growth separated — not a contract value. Runs in the browser.
- Contributions
- €24,000
- Growth
- €8,912
- Total
- €32,912
Over 20 years at 3.0% a year — freely chosen. Contributions €24,000. Growth €8,912. Total €32,912.
Assumptions. Steady monthly contribution, optional start amount, monthly compounding, no withdrawals, charges, or tax.
Illustrative example only, not a forecast, guarantee or advice. Past performance is not a reliable indicator of future results. Inputs are not stored.
How it works
Four steps — lock-in stays visible
Pension insurance with tax relief. Product example on this page: ERGO Basis-Rente of ERGO Vorsorge Lebensversicherung AG. No promise of a particular pension.
01
Pay in
Regularly, once, or both — minimum €25 a month, single premium from €2,500. Contributions can change; pauses up to 24 months (36 in parental leave), top-ups from €500 per flyer.
02
Invest
Index, Balance, or Dynamik. Index: security assets and index participation. Balance and Dynamik: funds and classic investment — funds can fall.
03
Take into tax
Special expense within the ceiling — deductibility depends on other contributions and marginal rate. Pension taxable later.
04
Lifelong pension
Contract value at start becomes a monthly lifelong pension. Start after the 62nd birthday, at the latest in the year age 85 is reached.
How it works → — Understand first. Then decide.
Product example
ERGO Basis-Rente — Index, Balance, Dynamik
Three investment concepts in the same contract; no recommendation. Placement as a tied intermediary of ERGO Beratung und Vertrieb AG under §34d (7) GewO — not a market survey of every Basisrente in Germany.
Index
Security before fund investment?
What a guarantee means here
100% contribution guarantee as minimum capital for the pension from a 12-year term (single premium from five years).
What is not promised
No promised growth or pension above minimum capital.
Index
- Classic investment in security assets; surpluses for index participation or secure interest.
- Minimum €25 a month or €2,500 once.
Balance
Split funds and security?
What a guarantee means here
Protection of the classic part per conditions — no contribution guarantee in the flyer description for Balance.
What is not promised
The single-premium illustration uses Balance, 100% MEAG AktienGlobal, 6% a year assumed — an assumption, not a fund recommendation.
Balance
- Split between funds and security assets, changeable. Classic part protected; fund part can fall.
Dynamik
Larger fund share?
What a guarantee means here
Contribution guarantee from 10% to 100% — share of premiums as minimum capital.
What is not promised
No fixed growth. Funds can fall.
Dynamik
- Dynamic split, up to 100% in funds. Surpluses from classic investment added; fund part carries investment risk.
Source: product flyer and short note on ERGO Basis-Rente at ergo.de/basis-rente (March 2026, marketing information).
Payout
Lifelong pension — no free lump sum
Tax relief and lock-in are the same contract: capital cannot be paid out freely, transferred, borrowed against, or sold. The pension is what is paid in exchange for the deduction.
No free lump-sum at retirement
Lifelong pension
Monthly pension for life; optional guarantee period or partner’s pension per flyer — still a pension, not a lump sum.
Survivors
Benefits as a pension, e.g. lifelong partner’s pension from contract value. Who can be included is in the conditions.
Occupational disability
Optional waiver of contributions if unable to work, three-year waiting period — not a substitute for separate disability cover.
From value to pension
At start, the pension factor turns contract value into a monthly lifelong pension. A higher factor means a higher pension from the same value — the value itself is not promised.
Three parts of the pension calculation
Marketing information calls this a triple advantage — how the pension is calculated, not a growth promise. The 6% a year belongs only to the single-premium illustration.
Pension factor
Guaranteed factor converts value into a monthly lifelong pension. Optional pension-factor plus.
Life expectancy
Life expectancy assumed at contract start, written down.
Technical interest
Interest rate for conversion fixed only at pension start, with a conversion check in favour of the insured — technical rate, not investment return.
Contribution guarantee protects premiums as minimum capital after stated periods — not a substitute for growth. Conditions come first.
Tax in retirement
Basisrente pension is taxable. Today’s advantage returns as tax on the pension.
Flyer: taxable share 86% for a pension starting in 2030; rises by 0.5 percentage points each year until 100% from 2058. Returns during saving are not subject to flat tax on investment income per flyer — the pension is still taxable.
Individual tax belongs with a tax adviser — this page does not calculate it.
Orientation from product flyer March 2026 and statutory design. Lump-sum payout: private retirement provision, not Basisrente. The German wording is authoritative.
Questions
Common questions
Is Basisrente mainly about saving tax?
No — an exchange: possible tax advantage today, lock-in, lifelong pension later. First check whether the trade-off fits the situation.
Is €58 the net outlay in the example?
Only in the example: €100 at 42% → €42 relief, about €58 net outlay. Personal rate and ceiling decide. Not tax advice.
Are about €314 gross and about €220 net promised?
No — illustration: €60,000 single premium, taken out at 60, five years’ deferral, Balance, 100% MEAG AktienGlobal, 6% a year assumed, 0.7% increase, 30% tax in retirement, ten-year guarantee. Past performance is not an indicator of future performance. Not fully deductible for a single person in 2026.
Is there a lump-sum payout at retirement?
No. Only a monthly lifelong pension — in return the contribution may be tax-deductible.
Who might the trade-off fit — and who not?
Worth a look when a lifelong pension fits the gap and capital is not needed before then. A poor fit when a lump sum, free withdrawals, or capital for heirs matter. Not automatic suitability.
Are contributions fully deductible?
Up to the ceiling, together with other pension contributions. In 2026: €30,826 and €61,652 assessed together — usually rises each year.
Is the pension tax-free later?
No. Flyer: 86% taxable for a start in 2030; +0.5 percentage points a year, 100% from 2058. The law can change.
Contact
Sort the trade-off — appointment, call, or message
No form on this website. Calendly, phone, WhatsApp, or email — as on the contact page.