Correctly enter retirement provision in your tax return and benefit from tax advantages
13.05.25
12
Minutes
Katrin Straub
Managing Director at nextsure
Tax return time is approaching and you’re wondering where you need to enter your retirement provision? Many taxpayers are leaving money on the table here. This article shows you precisely which forms are relevant for Riester, Rürup and occupational pension provision, and how to declare your contributions correctly to secure maximum tax advantages.
The topic in brief and concise terms
Riester contributions belong in Annex AV; Rürup contributions and statutory pension contributions belong in Annex Vorsorgeaufwand.
Since 2023, contributions to basic retirement provision (e.g. Rürup, state pension) have been 100% tax-deductible up to the maximum amount of €27,566 (2024, single people).
Withdrawals from retirement provision are taxable and, depending on the type, must be entered in Schedule R, R-AV/bAV or N.
Overview: Understanding the tax treatment of retirement provision
Contributions to retirement provision reduce your taxable income as special expenses. For 2024, the maximum amount for retirement provision contributions under the basic provision is EUR 27,566 for individuals. Since 2023, these contributions have been tax-deductible in full. This mainly affects the statutory pension and Rürup contracts. For the Riester pension, there is Annex AV, which you can use to claim allowances or an additional special expenses deduction. Occupational pension provision (bAV) is usually converted directly from gross salary, which reduces it. Correctly entering this therefore secures you a noticeable tax saving. The exact rules are laid down in the Income Tax Act (EStG), in particular in Sections 10 and 10a. This section gives you an initial overview before we delve deeper into the details of the individual pension provision types.
Riester pension: correctly complete Annex AV
For your Riester pension, Schedule AV in your tax return is crucial. Here you enter your contract details and contributions paid in, in order to receive state bonuses or the special expenses deduction. The maximum deductible special expenses amount for Riester contracts is €2,100 per person per year. The tax office carries out a more favourable treatment check: if the tax saving from the special expenses deduction is higher than the allowance, the deduction is granted. Many providers already transmit the data electronically to the tax office. Nevertheless, you must complete Schedule AV, for example to provide details of direct or indirect eligibility. For example: Max has paid €1,500 into his Riester contract and is entitled to a basic allowance of €175. He enters €1,500 in Schedule AV. The tax office checks whether the special expenses deduction of €1,500 brings more tax advantage than the €175 allowance. Find out more about private retirement provision in ELSTER.
Our expert tip on Riester pensions
Make sure that your Riester provider submits the annual certificate under Section 92 of the Income Tax Act (EStG) correctly and on time to the Central Allowance Office for Retirement Assets (ZfA). Check the transmitted data in your pre-filled tax return (VaSt) in ELSTER. If there are discrepancies, you should enter the correct figures and, if necessary, contact your provider. This is particularly important to secure the full special expenses deduction for retirement provision contributions.
Rürup pension (basic pension): use the retirement provision expenses annexe
Contributions to the Rürup pension, also known as the basic pension, belong in the 'Vorsorgeaufwand' schedule of your tax return. They are usually entered in line eight under 'Contributions to certified basic pension contracts'. Here too, the provider usually transmits the data electronically to the tax office. Contributions to the Rürup pension are part of basic provision and, up to the maximum amount of EUR 27,566 (for single persons in 2024), are 100% deductible as special expenses. Your contributions to statutory pension insurance (employee and employer shares) are deducted from this maximum amount. For example: Anna is self-employed and pays EUR 12,000 into her Rürup pension. She has no other basic retirement provision expenses. She can claim the full EUR 12,000 as special expenses. For employees with statutory pension insurance, the deductible Rürup amount is reduced accordingly. Find out more about the three pillars of retirement provision.
The following points are important for the Rürup pension:
Entry in the Vorsorgeaufwand schedule (usually line 8).
Electronic data transmission by the provider is common.
Maximum deductible within the limit for basic provision (2024: EUR 27,566 for single persons).
Offsetting of contributions to statutory pension insurance.
Full deductibility of contributions (100%) since 2023.
Occupational pension provision (bAV): What belongs in the tax return
In occupational pension provision (bAV), contributions are often paid through salary conversion directly from gross pay. These contributions are tax-free and exempt from social security contributions up to certain maximum limits. For 2024, this means eight per cent of the contribution assessment ceiling for pension insurance (West) tax-free and four per cent exempt from social security contributions. Since the contributions already reduce your taxable gross pay, they generally do not have to be entered separately as an expense in the tax return during the accumulation phase. The reduced gross pay is recorded in Schedule N. Make sure that your employer correctly takes the salary conversion into account in your payslip. Payouts from the bAV are taxable in retirement and must then be declared in Schedule R-AV/bAV (for direct insurance, pension fund, pension scheme) or Schedule N (for support fund, direct commitment). You can find more information on occupational pension provision and taxes in our blog.
Payout phase: correctly taxing retirement income
If you receive benefits from your retirement provision, these must be taxed. For pensions from Riester contracts and certain forms of occupational pension provision (direct insurance, pension fund, pension scheme), use Annex R-AV/bAV. Benefits from Rürup contracts and the statutory pension insurance scheme belong in Annex R. Company pensions from direct commitments or support funds are recorded in Annex N as income from employment. The taxation of pensions is regulated in Section 22, number 5 of the EStG. The taxable portion of the pension depends on the year in which the pension begins. For pensions starting from 2040, full taxation is planned, although the Annual Tax Act 2022 slowed the increase in the taxable portion, so that full taxation will only be reached in 2058. Always check the benefit statements sent to you by your pension providers carefully. These often contain notes on the correct entry. Details on the taxation when cancelling a private pension insurance policy are also relevant.
Important annexes for pension income:
Annex R: For statutory pensions and Rürup pensions.
Annex R-AV/bAV: For Riester pensions and benefits from direct insurance policies, pension funds and pension schemes.
Annex N: For company pensions from direct commitments or support funds.
Annex R-AUS: For pensions from abroad.
Expert knowledge: legal foundations and current rulings
The tax treatment of retirement provision expenses is primarily governed by section ten of the Income Tax Act (EStG). Specifically for the Riester pension, section ten a EStG is relevant, which defines the deduction for special expenses and the grant subsidy. The taxation of pension benefits themselves falls under section 22 EStG. In recent years, there have been important rulings by the Federal Fiscal Court (BFH) on the issue of the so-called double taxation of pensions (e.g. case refs. X R 20/19 and X R 33/19). These rulings confirmed the fundamental constitutionality of deferred taxation, but led to adjustments by the legislature, such as the full deduction for special expenses for retirement provision expenses since 2023. Our expert tip: Use the option of the pre-filled tax return (VaSt) via ELSTER. Many data items, such as contributions to basic provision, are transmitted electronically to the tax office by the providers and can therefore be adopted directly. This minimises errors when it comes to the question 'retirement provision tax return where to enter'. Find out more about Insurance and taxes.
First, gather all relevant documents for your pension savings contracts for the relevant tax year. These include annual certificates from Riester providers (certificate under Section 92 EStG), statements of benefits for pension payments and proof of Rürup contributions. For your tax return, it is best to use tax software or ELSTER. These programmes often guide you directly through the necessary schedules and lines. Schedule AV must be completed for Riester contributions. Rürup contributions and contributions to the statutory pension insurance belong in Schedule Vorsorgeaufwand. In the case of occupational pension provision through salary conversion, your gross salary in Schedule N has already been reduced. Pension payments are declared depending on the type in Schedule R, R-AV/bAV or N. Always check the electronically pre-filled data from the tax office (VaSt) for completeness and accuracy. This ensures that all your expenses are taken into account correctly. Also remember other deductible insurance policies.
nextsure: Your partner for a worry-free future
Proper treatment of your retirement provision in your tax return can bring you significant financial benefits. At nextsure, we understand that the details can be complex. As your digital insurance portal, we offer you not only tailored insurance solutions, but also well-founded information. We help you recognise the importance of sound retirement provision and better understand the tax aspects. Although we are not permitted to provide tax advice, we support you with knowledge so that you are well informed. Optimising your retirement provision and making use of all tax advantages are crucial for a financially secure retirement. Trust in our expertise in the field of digital insurance solutions. We accompany you on the way to your optimal retirement strategy. Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete optimisation suggestions.
More useful links
Federal Ministry of Finance offers a BMF letter on tax incentives for private retirement provision.
ELSTER provides guidance on retirement provision for 2022.
ELSTER provides guidance on retirement provision for 2023.
Federal Ministry of Finance offers a BMF letter on the notification of taxable benefits from retirement provision contracts or occupational pension schemes from 2020 onwards.
German Pension Insurance provides information on the taxation of pensions.
German Pension Insurance offers a brochure on tax law for insured persons and pensioners.
Federal Government provides information on pension contributions.
Consumer Advice Centre offers a guide to occupational pension provision.
FAQ
Which forms do I need for my pension provision in my tax return?
The most important forms are Annex AV (for Riester pension), Annex Vorsorgeaufwand (for Rürup pension and statutory pension contributions) and, for pension payments, Annexes R, R-AV/bAV or N, depending on the type of retirement provision.
What is the difference between Schedule AV and the pension expenses schedule?
Schedule AV is specifically intended for contributions to the Riester pension in order to claim state allowances or the special expenses deduction. The Vorsorgeaufwand schedule is used to claim contributions to basic provision (e.g. statutory pension, Rürup pension) as well as other pension expenses.
What is the maximum amount I can deduct for my retirement provision?
In 2024, up to €27,566 for single people and €55,132 for married couples can be deducted in full as special expenses for basic provision (state pension, Rürup). For the Riester pension, the maximum special expense deduction is €2,100 per person.
Are my retirement provision contributions automatically reported to the tax office?
Yes, many providers of pension contracts (particularly Riester and Rürup pensions) transmit the relevant data electronically to the tax office (so-called eDaten). Nevertheless, you must complete the corresponding annexes in your tax return and check the data.
Do I have to declare my occupational pension on my tax return?
Yes, pension benefits from occupational pension provision are taxable. Depending on the method of implementation (e.g. direct insurance, pension fund, support fund), they should be entered in Annex R-AV/bAV or Annex N.
What happens if I forget to include my retirement provision in my tax return?
If you do not declare deductible retirement provision expenses, you may miss out on tax savings. With pension income, forgetting to provide the information can lead to queries from the tax office and, if necessary, additional tax payments.
