If you are saving money for your private pension under the Riester or Rürup plans, you can get back a significant portion of your contributions thanks to tax benefits and state allowances. However, many people do not take full advantage of these programs—often due to a lack of knowledge about limits, deduction rules, and ways to increase refunds. In this guide, you will learn how state support works, when you can expect the most benefit, and what you need to do to get the maximum amount back from tax benefits.
Do you want the state to contribute to your pension? Find out how you can reclaim money from Riester and Rürup this year!
The state supports private retirement savings with tax benefits and special bonuses. Basically, it works so that you can deduct contributions to Riester and Rürup in your annual tax return, and in the case of Riester, you also receive an annual allowance. This actually reduces your taxes or increases your refund.
This is important because many people are not yet utilizing the deductions they are entitled to. If you regularly pay contributions, you have the right to deduct these and get part of the funds paid back. The earlier you file an application, the quicker you’ll see the effect on your account.
It is also important to note that each form of saving works somewhat differently. Riester is ideal if you work and pay pension insurance contributions, while Rürup is suitable for self-employed individuals or people with higher incomes who want to build a basic pension with full tax deductibility. This difference is crucial if you want to maximize the benefits before the end of the tax year.
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Don’t leave money in the tax office! How to calculate your benefits and deduct the maximum from private pension contributions
The benefits are calculated based on the contributions paid and the statutory limits for Riester and Rürup. In practice, this means that you can deduct up to several percentages of the contributions paid, and the exact value depends on the individual tax rate. The higher your tax rate, the more worthwhile it is to make full use of the limit.
It is advisable to approach this methodically. Check the annual confirmations of your contributions, compare them to the current deduction limit, and see if you are within the maximum amount. If you do not utilize the full limit, you can make a small additional payment at the end of the year to increase the deduction value.
Such a replenishment of contributions is a simple way to avoid leaving money at the tax office that can be legally returned to you. If you have doubts, it is advisable to use calculators provided by financial institutions or consult a tax advisor, who can quickly calculate the possible refund.
Current Deduction Limits – How much can you deposit and deduct in 2026?
To realistically assess whether you are taking full advantage of the benefits, it’s important to know the exact annual contribution and deduction limits.
Riester – Limit 2,100 € annually
Under Riester, you can deduct a maximum of 2,100 € annually (including the allowance received). This means that the tax office will conduct a so-called Günstigerprüfung to check whether the tax advantage is more beneficial or if it is better to only consider the state allowance.
To receive the full allowance (175 € annually), you must contribute at least 4% of the previous year’s gross annual income, minus any premiums due, but no less than 60 € annually (minimum contribution).
Rürup (Basic Pension) – Limit up to 30,826 € annually (2026)
In the case of Rürup, the limit is significantly higher. In the year 2026, you can contribute up to:
- 30,826 € annually – for individuals,
- 61,652 € annually – for jointly assessed married couples.
It is important that contributions to Rürup are 100% tax-deductible as special expenses up to the specified limit. This means that at high incomes, the tax benefit can reach several thousand euros per year—depending on the tax rate.
Based on these amounts, you can quickly check whether your contributions are within the limit and whether it is worth paying the missing portion of the contributions before the end of the year to maximize the tax refund.
Calculation Example – How much can you actually get back?
Let’s assume you deposited in a given year:
- 1,200 € contributions to Riester,
- due allowance amounts to 175 €,
- Your tax rate is 30%.
Step 1: Calculate the tax advantage
If the tax office determines that deducting the contributions offers you a higher refund than the allowance, it is calculated as follows:
1,200 € × 30% = 360 € tax advantage
Step 2: Compare with the allowance
State allowance: 175 €
360 € (deduction) – 175 € (allowance) = 185 € additional refund
Total benefit: 360 €
Riester or Rürup? Discover which plan allows you to deduct more taxes and for whom it is really worthwhile
The difference between Riester and Rürup mainly lies in the form of tax support. Riester offers allowances and the possibility to deduct contributions, while Rürup provides access to extensive deductions, even if you are not subject to mandatory pension insurance contributions.
In practice, Rürup is usually worthwhile for self-employed individuals and those with a higher taxable income. If you are employed, Riester remains attractive due to family allowances and low entry thresholds. For many, it is crucial that even small contributions can trigger the full state allowance.
Before choosing one of the programs, check which fits your income situation, job stability, and retirement goals. Both systems are part of private pension plans, but each favors different saver groups.
How the “Günstigerprüfung” works – a step-by-step look at how the tax office calculates your deduction and when the tax refund increases the most
The “Günstigerprüfung” is a procedure that checks whether the state allowance or the deduction of pension insurance contributions under special expenses is more beneficial for you. In practice, the tax office compares both solutions and automatically chooses the more advantageous one to minimize your tax burden as much as possible.
The mechanism is simple – if the contributions save you more taxes than the allowance amounts to, you receive a higher refund. However, if your tax is low, the office sticks to the allowance, as it already offers the better financial effect.
The most advantageous situation arises when you have income in the middle or higher tax bracket. Then, even standard contributions can generate a significant deduction. Therefore, it is important to regularly check your individual calculations – especially if job, income, or household size change. For many, such analyses help to better plan future benefits and understand the impact of today’s decisions on the average pension in Germany.
Building a private pension? Avoiding a trap could bring you hundreds of euros in refunds – see what it’s about!
The most common trap is that many do not contribute the minimum amount for the full allowance. With Riester, you lose part of the allowance and thus a part of the tax yield if your contribution is too low. Without regular monitoring of contributions, this small but costly detail can easily be overlooked.
A second risk lies in the absence of annual updates to data about children, marital status, or employment situation. These changes realistically influence how much you can deduct and which allowances you receive. Updating data takes only a moment, but the consequences can be long-lasting. When saving for the future, also pay attention to payout limits and rules. In both programs, benefits are taxed on a deferred basis, meaning only upon pension payout. This is good news as it allows for current tax advantages, but requires long-term planning.
Therefore, it is worth applying for a refund because with well-calculated deductions, you can receive tangible amounts back that you are entitled to according to regulations. To handle the process stress-free and without unnecessary formalities, it’s best to use the Taxando app – within minutes, you can complete a quick and accurate tax return from Germany online, and the system immediately provides guidance on which deductions to consider to avoid leaving more euros with the tax office than necessary.
Maciej Wawrzyniak
In his private life, Maciej enjoys sporting challenges, playing the guitar, and swimming in the lake. He is also the proud father of three sons.
