The Basis pension was originally designed for the self-employed as a substitute for statutory pension insurance. Many of its features are therefore based on statutory pension insurance. However, the private Basis pension works on the principle of capital cover. This means that the insured person concludes an individual contract and can also structure it within the statutory framework.

The contributions to the Basis pension count as special expenses in your annual tax return. This means you pay less tax on your income

You are flexible with the Basis pension. You can make monthly and annual payments as well as special payments.

From the start of your pension, you will receive a fixed pension every month - no matter how old you get.

We take care of everything for you. Whether it’s rebalancing your ETFs, managing the policy, etc.

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.

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.

Since this product does not have the benefits of flexibility in case of cancellation, it can make sense for anyone who is employed and in a high tax class. But only if you’re planning to stay in Germany until your retirement.