Riester pension and health insurance: What you need to know about contributions
9 Jun 2025
5
Minutes
Katrin Straub
CEO at nextsure
Many Riester savers wonder whether they will have to pay health insurance contributions on their additional pension provision later. The answer is not always simple and depends on various factors. This article highlights the details and shows you what you need to consider.
The topic in brief and concise terms
Privately funded Riester pensions are usually exempt from health and long-term care insurance contributions during the payout phase for those with mandatory insurance in the KVdR.
Since 2018, contributions have been exempt in health and long-term care insurance for company Riester pensions as well.
Voluntarily insured individuals under statutory schemes typically have to pay contributions on their Riester pension.
Understanding Health Insurance Contributions on Riester Pensions: The Basics
The question of whether health insurance contributions apply to a Riester pension concerns many savers. Generally, privately funded Riester pensions for those compulsorily insured in the pensioners' health insurance (KVdR) are contribution-free. This means that during the payout phase of your self-financed Riester pension, you usually don't have to fear additional deductions for health and long-term care insurance. This regulation has been in place since a clarification by the courts and affects a large majority of Riester savers. However, it is important to know the exact conditions as there are exceptions. The distinction between privately and occupationally funded contracts plays a crucial role here. At times, different regulations applied to occupational Riester pensions, but there were also adjustments made to benefit the insured. The contribution-free status for privately funded Riester pensions is a significant advantage of this form of retirement planning. This means you will retain more of your additional pension in old age. The legal basis for this can be found in the Fifth Book of the Social Code (SGB V). This clear regulation provides planning security for millions of Riester savers in Germany. The next section examines the differences in various Riester options more closely.
Contribution obligation for different Riester models: Private vs. Occupational
The obligation to contribute to health insurance varies depending on whether it is a privately funded or a company-sponsored Riester pension. For purely privately funded Riester contracts for which you, as an employee, pay contributions directly from your taxed income, no health and care insurance contributions are due during the payout phase for those insured under the KVdR. This is a significant advantage that increases the attractiveness of this form of provision. The situation was different for a long time with company-sponsored Riester pensions, which are concluded through the employer (e.g., via pension funds, pension schemes, or direct insurance). Here, benefits were often treated as pension payments, resulting in a contribution obligation. However, since 2018, there has been an important change: company-sponsored Riester pensions are also exempt from contributions to statutory health and care insurance during the payout phase. This equalisation was an important step and eliminated a previous inequality. For those who are voluntarily insured under the statutory scheme, contributions may still apply, both for private and company-sponsored Riester pensions. It is therefore crucial to carefully check your insurance status. An advice session on the Riester pension can provide clarity here. The distinction is therefore not as significant as it used to be, but details remain important. The following will examine the situation with lump-sum payments.
Capital withdrawals and health insurance: What applies to a one-off payment?
Many Riester savers take advantage of the opportunity to withdraw up to thirty per cent of their saved capital at the start of the payout phase. The question then is whether health insurance contributions are due on this capital payment. For privately financed Riester contracts, the same applies here: If you are compulsorily insured in the KVdR, capital withdrawals up to this amount remain exempt from health and long-term care insurance contributions. This is a pleasing regulation for many retirees who want to fulfil wishes with the lump sum or ensure financial flexibility. In the case of a complete capital withdrawal, which is considered a "detrimental use" and leads to the repayment of allowances and tax benefits, the situation is different and more complex. Contributions may apply here. For company Riester pensions paid out as capital, a contribution obligation often used to apply in the past. However, since the legislative changes in 2018, there have been reliefs here as well, and company Riester capital payments are now also exempt from contributions. It is important to note, however, that the full capital withdrawal of a Riester pension has tax consequences and the allowances received must be repaid. An early termination with a capital settlement is usually disadvantageous. The regulations concerning contribution-free partial capital withdrawals are an important aspect in planning your retirement. Next, we will take a look at the situation for voluntary contributors.
Special case for voluntary health insurance: Contributions may apply here
For retirees who are not mandatorily insured in the health insurance for retirees (KVdR) but are voluntarily insured in a statutory health insurance, different rules apply. For this group, contributions to health and long-term care insurance may be incurred from Riester pension benefits – both ongoing pension payments and capital withdrawals. This affects, for example, self-employed individuals or higher-earning employees who have opted for voluntary membership. The contribution rate then corresponds to the general contribution rate of the health insurance plus the individual additional contribution of the insurance fund and the long-term care insurance contribution. This regulation can significantly reduce the net Riester pension for those voluntarily insured. It is therefore particularly important for voluntarily insured individuals to consider this aspect when planning for retirement. The exact amount of contributions depends on the individual income and the contribution rates of the respective health insurance. Information about voluntary health insurance is advisable here. The distinction between mandatory and voluntary insurance thus has direct financial implications for your Riester pension. In the next section, we will discuss allowances and legal foundations.
Allowances and Legal Foundations: Understanding the Legal Classification
The exemption from health insurance contributions on Riester pensions for those compulsorily insured under KVdR is an important relief. For other pension benefits, such as traditional company pensions, there is an allowance. This was 187.25 euros per month in 2025. Only the part of the company pension that exceeds this amount is subject to health insurance contributions. However, this allowance does not apply to long-term care insurance. For Riester pensions that are privately funded, where the saver is compulsorily insured under KVdR, this allowance does not apply, as they are already fully exempt from contributions. The legal basis for the contribution obligation of pension benefits can be found in § 229 paragraph 1 of SGB V. The clarification that privately funded Riester pensions are not considered liable pension benefits under this provision was the result of court rulings. The Federal Social Court has issued important judgments that clarified the distinction between occupational and private pensions. For occupational Riester pensions, contribution freedom was later introduced by the Occupational Pension Strengthening Act to make them more attractive. A look at regulations for pensioners in health insurance can provide additional information. Understanding these legal frameworks helps to better assess one's own situation. Now, on to the expert tips for your Riester pension.
Expert tips on Riester pension and health insurance: Optimal planning
To get the most out of your Riester pension and avoid unexpected deductions, there are a few points you should keep in mind. Our expert tip: Clarify your health insurance status in retirement early on. Are you likely to be compulsorily insured in the KVdR or voluntarily insured? This significantly influences whether contributions will be levied on your Riester pension. Secondly, if you have an occupational Riester pension, make sure it's correctly classified as Riester-sponsored to benefit from contribution exemption. Thirdly, with planned capital payouts, keep an eye on the thirty-percent limit to make the most of contribution exemption (for KVdR insurance) and tax advantages. A full capital payout might be disadvantageous. Fourthly, check whether a Riester pension makes sense for your situation and explore what alternatives are available. Here’s a checklist for your planning:
Check insurance status in retirement (KVdR or voluntary).
With occupational Riester: Ensure correct classification as Riester-sponsored.
Capital payout: Consider the thirty-percent option and its implications.
Consider the tax aspects of the payout (deferred taxation).
Review the long-term profitability and costs of the contract.
If necessary, seek independent advice on retirement planning.
Careful planning and information protect against surprises in retirement. These considerations help you make the right decisions for your additional retirement provision. Finally, we summarize the key points and provide an outlook.
Summary and Outlook: Optimising Your Riester Pension
In summary, privately funded Riester pensions for retirees with mandatory insurance in the KVdR generally do not incur health and long-term care insurance contributions. This applies to both ongoing pension payments and partial capital withdrawals of up to thirty percent. Since 2018, company-based Riester pensions have also been exempt from this contribution obligation. An exception exists for voluntarily insured individuals, where contributions may be charged. Therefore, the distinction is crucial. The exemption from contributions makes the Riester pension more attractive to a large group of people. However, it is always advisable to carefully review the individual contract terms and your own insurance status. The tax treatment of the Riester pension during the payout phase (deferred taxation) remains unaffected. For comprehensive planning of your retirement and to clarify specific questions regarding your situation, we are at your disposal. Use our expertise for your financial future. Information on tax deductibility can also be found with us. The right strategy ensures you a higher net income in retirement.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete optimization suggestions.
More useful links
Die Deutsche Rentenversicherung offers comprehensive information on the state support for the Riester pension.
Wikipedia provides a general overview of the Riester pension and how it works.
Der Sozialverband VdK Deutschland provides information on the contribution exemption of Riester contracts and relevant court rulings.
Die Deutsche Rentenversicherung explains in detail how the payout of the Riester pension functions.
Die AOK offers information on the regulations for health insurance contributions on pension benefits.
Der Gesamtverband der Deutschen Versicherungswirtschaft (GDV) provides a brochure with basic information on the Riester pension.
Die Deutsche Rentenversicherung provides information on who benefits most from the Riester pension.
Der Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung offers a working paper with in-depth analyses of the Riester pension.
FAQ
Are Riester pensions generally subject to compulsory health insurance?
No, for the majority of Riester savers who are compulsorily insured in the health insurance of pensioners (KVdR), there are no health and long-term care insurance contributions on privately financed and, since 2018, also on company Riester pensions. There is an exception for those who are voluntarily insured under the statutory scheme.
What changed in 2018 regarding health insurance contributions on company Riester pensions?
Since 2018, company-sponsored Riester pensions are exempt from mandatory contributions to statutory health and long-term care insurance during the payout phase. This has equated them with privately funded Riester pensions.
I am voluntarily covered by statutory health insurance. Do I have to pay contributions on my Riester pension?
Yes, as a voluntary member of statutory insurance, you generally have to pay health and nursing care insurance contributions on both ongoing Riester pensions and capital disbursements.
What is the maximum amount I can withdraw from my Riester pension without contributions (subject to KVdR insurance)?
During the initial phase of withdrawals, you can receive up to 30 percent of your accumulated Riester capital as a lump sum without incurring health and long-term care insurance contributions, provided you are compulsorily insured in the KVdR.
Does it matter if my employer was involved in the Riester pension?
This was previously relevant for the contribution obligation (keyword occupational pensions). However, since the amendment to the law in 2018, occupational Riester pensions, where the employer is involved, are also exempt from health insurance contributions during the payout phase for those insured under the KVdR.
Where can I find the statutory regulations on the contribution requirement for Riester pensions?
The relevant regulations can be found, among others, in the Fifth Book of the Social Code (SGB V), in particular § 229 SGB V concerning retirement benefits. Decisions of the Federal Social Court have also contributed to clarification.
