The basic pension or Rürup pension - neglected old-age provision

Compared to other forms of pension provision, such as statutory pension insurance or the private Riester pension, the Rürup pension or basic pension is much less well known to the public. This special form of pension provision offers great opportunities to additionally strengthen purchasing power in old age. The topic of old-age provision and securing the statutory pension level via a statutory equity pension is on everyone's lips, although a much neglected form of old-age provision has been around since 2005: the basic pension.

What is the Rürup pension or basic pension?

The basic pension, also known as the Rürup pension, is a form of private old-age provision that is subsidized by the state. It was named after the economist Bert Rürup and aims to enable self-employed persons, freelancers and salaried high earners and civil servants to make additional provision for old age. Setting up a Rürup pension plan is voluntary and the contributions are tax-deductible as special expenses. A payment into the Rürup pension can be made on an ongoing or one-off basis. On retirement, the basic pension is paid out as a lifelong pension; a lump-sum settlement is not possible. This form of pension provision is based on the statutory pension.

The subsidy was introduced to strengthen private pension provision and improve financial security in old age. All consumers who pay tax can benefit.

Why is the Rürup pension less well known to the public?

"The basic pension is much less well known among the public and our customers," says André Perko, Managing Director of Frankfurt-based financial consultancy FINANCEDOOR GmbH. "Many are surprised by the attractive tax implications within their pension plan," Perko continues.

There are reasons why pension provision is less well known:

* The public focus is on other pension products. The public is very interested in the state pension scheme or currently the equity annuity, as this affects significantly more consumers. The taxpayers benefiting from a basic pension are significantly fewer people. In addition, private pension products are much more heavily advertised.
* The target group is small with the well-known group of self-employed and freelancers. The tax incentives are particularly effective for high earners. The Rürup pension for civil servants is also possible. As a result, the Rürup pension is less in the public eye.
* Misunderstandings about the form of investment: There is often the belief that it is a state investment á la statutory pension insurance or that it is a classic life insurance policy. However, a basic pension or Rürup pension provides for a flexible choice of investment and can also be taken out as an ETF basic pension. The attractiveness of fund and ETF investments can be exploited in this way.
* Lack of PR and advertising: Due to the smaller target group and the necessary individual calculation of tax advantages, advertising campaigns are more difficult to organize and are usually not initiated.

Advice on Rürup pensions is challenging

Advice on basic pensions is not quite as simple as advice on private pension insurance, which is why advisors or brokers are not quite as keen to address the subject. The more demanding advice is given with regard to deferred taxation in old age and requires comprehensive knowledge of possible retirement income, as well as consideration of the health insurance situation on this income. Pension savers must also be shown the distinction between this and all other pension options. The advantages and disadvantages of a Rürup pension must be given special consideration.

Conclusion

All in all, there are various factors why the Rürup pension or basic pension is less well known to the public. Nevertheless, for many target groups it offers an attractive option for additional retirement provision and should therefore be taken into consideration when planning your personal finances.

FINANCEDOOR GmbH
Kiesstr. 38
60486 Frankfurt am Main
Germany

https://www.financedoor.de

FINANCEDOOR GmbH
Herr André Perko
06977039967

mail@financedoor.de

FINANCEDOOR GmbH from Frankfurt am Main offers financial advice for private households under the leadership of CEO André Perko. As an independent financial advisor, the portfolio ranges from pensions and insurance to professional investments. The financial planning and financial advice also includes private construction financing and retirement planning.

In the spirit of consumer protection, CEO André Perko sees himself as a partner at his clients' side. Financial brokerage and advice is provided independently, i.e. without any ties to specific banks or insurance companies: the company is registered as a fee-based financial investment advisor under §34 h GewO.

With over 23 years of experience in private financial advice, the company prepares financial reports and insurance checks. Customers appreciate this service. FINANCEDOOR GmbH can look back on over 1000 positive customer reviews from the past 23 years. A success based on many years of experience and expertise in financial advice.

This release was published on openPR.