What forms of Rürup pension are available?
The Rürup policy can be taken out as either a traditional or a unit-linked life insurance. In both cases, the entitlement is a monthly pension payment, known as an annuity. A traditional life insurance invests the savings portion diversely in the capital market, mainly in bonds. The policyholder receives a profit share from the returns. The guaranteed interest rate was 1.75 percent for contracts concluded between 2012 and 2014, 1.25 percent for contracts from 1 January 2015, and it dropped to 0.9 percent on 1 January 2017, and to 0.25 percent from 1 January 2022.
With unit-linked life insurance, the savings amount is invested in investment funds. Therefore, there is no guaranteed interest rate as with the traditional policy. The risk is slightly higher, but above-average returns are possible. The Rürup pension is also secure in the event of unemployment. Since no money can be paid out before the pension starts, the savings are not considered disposable assets under the Social Security Code and cannot be seized during the accumulation phase.
The ongoing contributions and the accumulated capital are also not counted towards unemployment benefit II. During the pension phase, the payments are, of course, subject to seizure, at least above the non-seizable portion. Until then, periods during which no contributions are made for an extended period do not affect the tax benefits. However, the contract with the insurance company must allow for a contribution pause.
