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Pension planning for the self-employed in Germany: obligations, options and tax benefits in 2026
Most self-employed people in Germany are not automatically covered by the statutory pension system and have to provide for retirement themselves. Some professions – such as teachers, midwives, carers and registered craftspeople – are, however, subject to mandatory insurance. Here you find out whether you have to pay, what the statutory pension (gesetzliche Rente) costs in 2026 and how to combine the Rürup pension, ETFs and the Altersvorsorgedepot subsidised from 2027.
Do I have to pay into the statutory pension insurance as a self-employed person?
In principle, the self-employed in Germany are not compulsorily insured in the statutory pension insurance (gesetzliche Rentenversicherung). However, § 2 SGB VI lists groups for whom an obligation exists – usually because they are typically in need of protection. For chamber professions such as doctors, lawyers, architects or tax advisors there are instead separate professional pension schemes (Versorgungswerke) with mandatory membership.
Important: the obligation arises by law, not through registration. You have to report to the Deutsche Rentenversicherung yourself within three months of starting your activity. If you miss this, you risk back payments for up to four years retroactively – even longer in case of intent.
| Group | Mandatory pension insurance | Note |
|---|---|---|
| Teachers, lecturers, trainers, coaches, educators | yes, if without an employee subject to insurance | also applies to language teachers, yoga teachers, tutoring |
| Midwives | yes | – |
| Carers (nursing, elderly care, childcare) | yes, if without an employee subject to insurance | – |
| Craftspeople in the Handwerksrolle | yes (licensed trades) | exemption on application after 18 years of mandatory contributions |
| Artists and journalists | yes, via the Künstlersozialkasse | you only pay half |
| Self-employed with essentially only one client | yes, if without an employee subject to insurance | exemption for business founders possible for up to 3 years |
| IT freelancers, designers, consultants with several clients | no | voluntary or private provision |
What does mandatory insurance cost in 2026?
Self-employed people subject to mandatory pension insurance pay the 18.6% contribution alone. Without proof of income you pay the standard contribution (Regelbeitrag), calculated from the reference value (Bezugsgröße): in 2026 that is €735.63 per month. Until the end of three calendar years after starting your activity you can choose half the standard contribution, €367.82.
If your profit is lower, you can apply to pay an income-based 18.6% of your profit according to your latest income tax assessment – at least €112.16, at most €1,571.70 per month (contribution assessment ceiling €8,450 per month). Example: a self-employed yoga teacher with €18,000 profit per year pays 18.6% of €1,500 = €279 per month instead of €735.63.
Self-employed people with only one client should also check whether false self-employment (Scheinselbstständigkeit) applies – in that case the client would have to pay contributions as an employer.
Voluntary contributions to the statutory pension insurance
If you are not compulsorily insured, you can pay voluntary contributions – in 2026 between €112.16 and €1,571.70 per month, in any amount and with breaks. You can pay contributions for a year until 31 March of the following year. Every contribution earns pension points (Entgeltpunkte): an annual contribution equal to the standard contribution (€8,827.56) earns around 0.9 pension points, which at the pension value of €42.52 applicable since 1 July 2026 is about €38 of monthly pension – for life and with future pension increases.
The catch: voluntary contributions usually do not secure a claim to a reduced earning capacity pension (Erwerbsminderungsrente), because that requires three years of mandatory contributions within the last five years. If you want this, you can opt into mandatory insurance on application within five years of starting self-employment (§ 4 Abs. 2 SGB VI). The mandatory contributions above then apply – and leaving later is no longer possible.
- Advantages: protection for reduced earning capacity and survivors (with mandatory insurance), rehabilitation benefits, subsidy to pensioners’ health insurance, inflation adjustment.
- Disadvantages: no lump-sum payout, not inheritable except via survivors’ pension, return depends on pension policy.
- Tax: contributions are fully deductible as special expenses (Sonderausgaben) within the maximum amount.
Rürup pension (Basisrente): tax benefit for the self-employed
The basic pension (Basisrente), often called Rürup-Rente after its inventor, is a private pension insurance or fund product with a lifelong pension that is taxed like the statutory pension. In 2026 you can deduct up to €30,826 (single) or €61,652 (joint assessment) as special expenses in your income tax return – at 100%. Contributions to the statutory pension or a professional pension scheme are counted towards this maximum amount.
In return the pension is taxable later: 84% for pensions starting in 2026, rising gradually to 100% for later cohorts by 2058. The basic pension cannot be cancelled, pledged or inherited (except through survivors’ cover) and is paid out as a lifelong pension, at the earliest from age 62.
Example: an IT freelancer with €70,000 profit pays €8,000 a year into a basic pension. At a marginal tax rate of around 40%, this lowers his income tax by about €3,200; the €8,000 therefore costs him around €4,800 net. For founders with low profit and a low tax burden the benefit is much smaller.
ETF savings plan and private provision: flexible, but without subsidies
Many self-employed people rely on a broadly diversified ETF savings plan. It can be cancelled at any time, the instalment can be paused in weak months, and in an emergency you can access the money. There is no tax advantage on payment; returns are subject to the flat-rate withholding tax (Abgeltungsteuer) of 25% plus solidarity surcharge, after deducting the saver’s allowance (Sparer-Pauschbetrag) of €1,000 (€2,000 for joint assessment). For equity ETFs, 30% of returns are tax-free (Teilfreistellung).
The downside of flexibility: the money is not protected from access in an emergency – neither from yourself nor from creditors. Retirement saving therefore takes discipline. A proven split combines basic cover (statutory pension or Rürup) with a flexible ETF portion.
| Option | Tax on payment | Tax in retirement | Flexibility | Protection in insolvency |
|---|---|---|---|---|
| Statutory pension (voluntary/mandatory) | special expenses up to the maximum amount | 84% for pensions starting 2026, rising | low | high |
| Rürup/basic pension | special expenses up to €30,826 | like statutory pension | very low | high |
| Altersvorsorgedepot (from 2027) | allowance up to €540 or special expense deduction | deferred taxation | medium | high |
| ETF savings plan | no advantage | flat-rate withholding tax on gains | high | low |
Altersvorsorgedepot from 2027: what is new for the self-employed
With the pension reform act (Altersvorsorgereformgesetz) – passed by the Bundestag in March 2026 and promulgated in June 2026 – the Riester subsidy is being restructured. From 1 January 2027 there is a subsidised retirement depot (Altersvorsorgedepot) in which you can invest, for example, in ETFs; products with a contribution guarantee remain possible alongside. Existing Riester contracts are grandfathered.
New for the self-employed: they become eligible for subsidies for the first time, even without mandatory pension insurance. The basic allowance is 50% on own contributions up to €360 and 25% on own contributions between €360 and €1,800 per year – at most €540 in total. There are additional allowances for children. You should check the providers’ concrete offers and all payout details at launch; as a supplement to basic cover and an ETF savings plan, the depot may be interesting for many self-employed people.
Is a mandatory pension provision for the self-employed coming?
A pension obligation for all self-employed people has been debated for many years. In its 2025 coalition agreement the current federal government announced that it would include new self-employed people who do not belong to any other mandatory pension system in the statutory pension insurance in a founder-friendly way. How choices for private provision, transitional rules and minimum contributions will look is still open.
As of October 2026 there is no law passed on this. For you this means: today, the obligation applies only to the professional groups listed above. If you are already self-employed, you should start providing for retirement now regardless – and follow new developments before committing long term.
How much should I set aside for retirement?
A rule of thumb: 10–20% of profit. If you are subject to mandatory pension insurance, 18.6% already covers a large part. If you are not compulsorily insured, set yourself a fixed percentage and pay it monthly by standing order – just like your tax reserves. Make sure you plan pension provision, tax reserves and health insurance together so you don’t run short of liquidity in weak months.
- Determine your monthly profit (EÜR, not turnover).
- Check mandatory contributions: pension insurance, professional pension scheme or KSK.
- Define basic cover: statutory pension, or Rürup for the tax benefit.
- Add a flexible portion via an ETF savings plan, from 2027 possibly the Altersvorsorgedepot.
- Adjust once a year with your new tax assessment.
Retirement planning and KontoVexa
KontoVexa is not a pension provider, but it delivers the figures you plan with: from invoices and expenses your EÜR is built continuously, with the current profit the pension insurance needs for income-based contributions. If you pay pension contributions from your business account, choose the category “Personal pension” – KontoVexa books a private withdrawal and your profit stays correct. More on KontoVexa for freelancers and the self-employed.
Frequently asked questions
Do I have to pay into the pension insurance as a freelancer in Germany?
Only if you belong to one of the mandatory groups under § 2 SGB VI, for example as a teacher, midwife, carer, registered craftsperson, artist/journalist via the KSK, or if you essentially have only one client. IT freelancers, consultants and designers with several clients are usually not compulsorily insured.
What is the minimum voluntary pension contribution in 2026?
The minimum contribution in 2026 is €112.16 per month, the maximum €1,571.70. You can choose any amount in between and change it at any time.
How much Rürup pension can I deduct in 2026?
Up to €30,826 if single and €61,652 for joint assessment, each at 100%. Contributions to the statutory pension insurance or to a professional pension scheme are counted towards this amount.
Can the self-employed use Riester?
So far only if they are subject to mandatory pension insurance or were indirectly eligible through their spouse. With the new Altersvorsorgedepot from 2027, the self-employed generally become eligible for subsidies.
What happens if I overlooked mandatory pension insurance?
The pension insurance can usually claim contributions for the last four calendar years. So report as early as possible and have it checked whether an obligation exists; for business founders with one client a temporary exemption is possible.
Are pension contributions business expenses?
No. Contributions to your own pension are special expenses (Sonderausgaben) in the income tax return, not business expenses (Betriebsausgaben) in the EÜR. If you pay them from the business account, you book them as a private withdrawal.
More about the matching KontoVexa feature: Freelancers
Step by step in the KontoVexa user manual: Retirement planning
As of: October 2026. General information, not tax advice.