detailed information around the base pension a private pension is now essential – this is now well aware most people. What but so far always resulted in a problem, is the fact that tax possibilities associated with a private pension on the part of the policy more and more have been through the wringer. For many people, it’s so simple and you have to pay anyway simply no longer makes sense, to be save a private pension – taxes on the final payout at the end. That was the situation prior to 2005! Since 2005 there is the so-called base pension, that pension was introduced as an alternative to the well-known Riester. The Riester pension is equipped with a direct, Government allowance as opposed to the base pension. The base pension receives its attractiveness, however, only by the fact that the contributions, which are provided in such a treaty are tax-deductible to a very large extent.

For whom is the base pension attractive? Since the base pension is mainly by a high tax savings for the policyholder has, it is intended above all for all the people that fall outside the optimum audience for Riester pensions. These are for example all self-employed, but also people with above-average incomes who need to set aside as much for the age / want and while the fiscal possibilities of a Riester pension would go beyond. How can the base pension be discontinued? Basically, the base pension is tax deductible up to a maximum of 20,000 for singles and 40,000 euros at together assessed married couples. Since the base pension was introduced but parallel to the taxation of the statutory pension insurance, the full amount is deductible today still. 2005 began the deductibility of contributions at 60%, 2012 are already 74%.

The deduction increases from year to year to 2%, resulting in a result that 2025 total contributions are deductible up to a maximum of 20,000 euros so can. Tax liability of the base pension where light is, is always also shadow, even when the base pension. As opposed to a purely private old-age provision of the third layer, the payout from a base pension must be taxed not only according to the semi-income system, but it is taxed to the full pension. Also here, a staggering has been introduced however: in 2005, 50% of the pension were taxable, 2012, there are 64%. By 2020 this is growing at annually by 2%, from 2021 then 1%. Thus the total payout from a base pension of tax liability is subjected to in fact only from 2040 and the corresponding taxes.