Basis pension in Germany

The basis pension is similar to statutory pension insurance in many respects. For example, payment is made exclusively in the form of a monthly life annuity after reaching the age of 62. A capital payment is excluded for both pensions. Lending, transfer, and sale are also not possible with either. However, additional benefits can be agreed upon for entitled surviving dependants.

A Basis pension is subsidized in a similar way to statutory pension insurance. In principle, the contributions are tax-free up to certain amounts, while the pension benefit must be taxed afterward. The maximum amount to be taxed in 2023 is around €53,056 for married couples/registered partnerships and around €26,528 for single people. 100% of these maximum amounts can be claimed for tax purposes. This so-called deferred taxation results in a favorable tax deferral effect, as tax-free contributions are invested tax-free until the start of retirement.

You will receive monthly payments.

Are you a freelancer or self-employed and would like to apply for permanent residency after 60 months? Then this product is your chance. All other products on the open market do not meet the requirements of the statutory pension and will not be accepted. This Basis pension can be saved with the same minimum contribution as the statutory pension and invested in the ETF market. This gives you something that is similar to the statutory pension, but much more effective in the end