The basic pension is a private retirement savings product that operates on a funded basis. A pension contract can be signed by the customer with or without guaranteed benefits and profit sharing. In retirement, the insured receives a monthly pension (life annuity) for life. The basic pension allows self-employed individuals and employees to close the pension gap in old age, take advantage of tax benefits, and secure themselves with additional components such as occupational disability or incapacity insurance.
The basic pension (also known as the "Rürup pension" after its initiator Bert Rürup) can be taken out in various forms as a lifelong annuity: as a unit-linked basic pension, which offers survivor's protection, or as an immediate annuity.
Such contract forms for basic pensions do exist.
- The basic pension (“Rürup pension”) with or without survivor protection.
If no further agreements have been made to provide for surviving dependents such as spouses, registered partners, or children, they will not receive any benefits upon the death of the insured. However, a survivor's pension can be included as an additional component in the Rürup pension plan.
What is a survivor's pension?
“Pension due to death” Upon the death of the insured partner/parent, a spouse, a registered life partner or a minor child or child still in education (up to the age of 25) receives a pension.
- Basic pension in unit-linked form
This is an option for retirement savers with a higher risk tolerance, as the contributions are invested in stocks or investment funds. The value of the accumulated retirement capital is determined from the start of the pension payments and invested throughout the pension payment period, similar to a traditional annuity.
The insurer guarantees a factor for calculating the lifelong annuity from the capital upon conclusion of a contract. This factor determines the amount of the annuity paid for each €10,000 of capital. Once the annuity payments begin, the amount is not guaranteed.
The future pension amount will be influenced by the performance of the funds or the stock market. A guarantee can be agreed upon if you wish to avoid the risk of losses. Part of this contribution is used to ensure that the contributions paid in up to that point are available at the start of the pension in any case.
- The immediate basic pension
For people nearing retirement age who want to generate a tax-advantaged, lifelong income from existing capital, an immediate annuity is a good option. The insured pays a large lump sum, from which a lifelong pension is paid immediately. The tax benefits help reduce the current tax burden and make the immediate annuity an attractive retirement savings option. Survivor's benefits for the spouse, registered partner, and children can also be added to the immediate annuity.
Additional components: Coverage for important life risks
The basic pension can be combined with various additional modules. These protect against certain life risks, such as occupational disability, incapacity for work, or death.
Request your risk check from our AI now – it's easy!