Self-employed people in Germany often have only half the statutory pension entitlements of employees, the OECD warns. An ifo study shows: only three percent make no provision at all, but 32 percent doubt their standard of living in retirement. The pension gap particularly threatens freelancers (liberal professions) and traders. Private provision fills the gaps where the state stops.

1. Check your status with the Deutsche Rentenversicherung: are you compulsorily insured (e.g. as an artist via the Künstlersozialkasse (Artists' Social Insurance Fund))? Otherwise you can register voluntarily or make other provision.
2. Calculate your needs: aim for roughly 70–80 percent of your current income as a target ^[2].
3. Choose a pillar: base pension for tax advantages, private policy for flexibility
4. Pay in: start with €100–500 monthly, adjust pension contributions to your income

Voluntary statutory pension insurance

• Suitable for all self-employed without compulsory insurance (freelancers and traders)
• You can pay contributions flexibly every month between €103 and €1,497 or skip them or pay only at year-end
• Alternative: monthly flat-rate contribution of €736 (halved in the founding year: €368)
• Advantages: secures qualifying periods, dynamic adjustment to wage development, solid base
• Disadvantages: low return (currently approx. 2–3 percent real), no tax incentive
• Ideal as an entry point and if you may later switch back to employment

Base pension (formerly Rürup)

• Suitable for higher incomes and self-employed with stable cash flow
• Up to €30,826 annually (2026) is tax-deductible
• Once you reach retirement age you receive full payment for life
• Advantages: high tax-saving effect (up to 100 percent deductible), guaranteed benefit
• Disadvantages: little flexibility (commitment until payout), 84 percent of pension later taxable

→ Start with lump-sum payments if your income fluctuates.

Riester pension

• Only possible for self-employed with a partner in the statutory pension insurance or for KSK members
• Allowances up to €175 per year plus 4 percent per child; minimum base contribution €60
• Advantages: state allowances and tax bonus boost your savings; family-friendly
• Disadvantages: high costs through upfront fees; bureaucratic

→ Worthwhile with family and on low incomes.

Private pension insurance

• For flexibility lovers who want funds or guarantees
• Contributions start at €50 monthly and are usually freely adjustable
• Potentially tax-free from age 62
• Advantages: fund options for higher returns (4–6 percent possible), worldwide investment possible
• Disadvantages: no guarantees with market fluctuations, payouts are taxable

Broad private provision

Private provision is a good supplement for everyone:

• e.g. in the form of ETFs, real estate or portfolio savings
• You can design flexibly yourself here, are rarely committed long-term
• Target: 5–7 percent return long-term
• Advantages: liquid funds often accessible, growth potential, diversifiable
• Disadvantages: higher risk, requires discipline and knowledge