Riester pension and health insurance: What you need to know about contributions
09.06.25
3
Minutes
Katrin Straub
Managing Director at nextsure
Many Riester savers ask themselves whether health insurance contributions will later have to be paid on their supplementary retirement provision. The answer is not always straightforward and depends on various factors. This article examines the details and shows you what you need to bear in mind.
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 mandatorily insured under KVdR.
Since 2018, exemption from contributions in health and long-term care insurance has also applied to occupational Riester pensions.
Voluntarily insured members of the statutory health insurance scheme must, however, usually pay contributions on their Riester pension.
Health insurance contributions on Riester pensions: Understanding the basics
The question of whether health insurance contributions are payable on a Riester pension concerns many savers. In general, privately funded Riester pensions are exempt from contributions for those compulsorily insured in the health insurance scheme for pensioners (KVdR). This means that, in the payout phase, you usually do not have to fear any additional deductions for health and long-term care insurance on your Riester pension that you have built up yourself. This rule has applied since a clarification by case law and affects the majority of Riester savers. However, it is important to know the exact requirements, as there are exceptions. The distinction between privately and occupationally subsidised contracts plays an essential role here. For occupational Riester pensions, different rules applied for a time, but here too adjustments were made in favour of insured persons. The exemption from contributions for privately saved Riester pensions is a clear advantage of this form of provision. This means you keep more of your additional pension in later life. The statutory basis for this can be found in Book Five of the Social Code (SGB V). This clear rule provides planning certainty for millions of Riester savers in Germany. The next section examines the differences between various Riester variants in more detail.
Contribution requirements for different Riester models: private vs. occupational
The obligation to pay health insurance contributions differs depending on whether it is a privately financed or an occupational Riester pension. For purely privately financed Riester contracts, for which you as an employee pay the contributions directly from your taxed income, no health or long-term care insurance contributions are due in the payout phase for those mandatorily insured under the statutory health insurance scheme for pensioners (KVdR). This is a significant advantage that increases the attractiveness of this form of provision. The situation was different for a long time with the occupational Riester pension, which is arranged through the employer (e.g. via pension funds, pension schemes or direct insurance policies). Here, benefits were often classified as pension-type benefits, which resulted in an obligation to pay contributions. Since 2018, however, there has been an important change: occupational Riester pensions are also exempt from contributions to statutory health and long-term care insurance during the payout phase. This equal treatment was an important step and removed a previous disparity. For voluntarily insured members of statutory health insurance, however, contributions may still be payable, both for private and occupational Riester pensions. It is therefore crucial to check your insurance status carefully. Advice on Riester pensions can help clarify matters here. The distinction is therefore no longer as significant as it once was, but the details still matter. Below, we look at the situation for lump-sum payouts.
Capital payouts and health insurance: What applies in the case of a lump-sum withdrawal?
Many Riester savers make use of the option of having up to thirty per cent of the accumulated capital paid out in one go at the start of the payout phase. The question then is whether health insurance contributions are due on this capital payment. The same applies to privately financed Riester contracts: if you are compulsorily insured in the KVdR, capital payments of this amount remain exempt from contributions in health and long-term care insurance. This is a welcome rule for many pensioners who want to treat themselves or secure financial flexibility with the lump sum. In the case of a full capital payment, which is regarded as a “harmful use” and leads to the repayment of allowances and tax benefits, the situation is different and more complex. Contributions may be payable here. For occupational Riester pensions paid out as a capital benefit, there used to be a contribution obligation in many cases. However, due to the legislative changes since 2018, relief has also been introduced here, and occupational Riester capital payments are now likewise exempt from the contribution obligation. It is important, however, to note that the full capital payment of a Riester pension has tax consequences and the allowances received must be repaid. An early termination with a lump-sum payment is usually disadvantageous. The rules on contribution exemption for partial capital payments are an important aspect when planning your retirement. Next, we take a look at the situation for voluntary policyholders.
Special case: voluntary health insurance: contributions may apply here
For pensioners who are not compulsorily insured in the health insurance for pensioners (KVdR), but are voluntarily insured in a statutory health insurance fund, different rules apply. For this group, contributions to health and long-term care insurance may be charged on benefits from the Riester pension – both on ongoing pension payments and on lump-sum payouts. This affects, for example, self-employed people or higher-earning employees who have opted for voluntary membership. The contribution rate then corresponds to the general contribution rate of the health insurance fund plus the fund-specific additional contribution and the long-term care insurance contribution. This arrangement can noticeably reduce the net Riester pension for voluntary members. It is therefore particularly important for voluntary members to take this aspect into account when planning for retirement. The exact amount of the contributions depends on individual income and the contribution rates of the relevant health insurance fund. A piece of information on voluntary health insurance is advisable here. The distinction between compulsory and voluntary insurance therefore has direct financial implications for your Riester pension. In the next section, we will look at allowances and the legal basis.
Allowances and legal foundations: Understanding the legal classification
The exemption from health insurance contributions on Riester pensions for those mandatorily insured under the pensioners’ health insurance scheme (KVdR) is an important relief. For other pension benefits, such as traditional company pensions, there is an allowance. In 2025, this amounted to EUR 187.25 per month. Only the portion of the company pension exceeding this amount is subject to health insurance contributions. However, this allowance does not apply to long-term care insurance. In the case of Riester pensions, which are privately financed and where the saver is mandatorily insured under the KVdR, this allowance does not apply, as they are already completely exempt from contributions. The legal basis for the obligation to pay contributions on pension benefits is found in Section 229(1) of the SGB V. The clarification that privately financed Riester pensions are not considered pension benefits subject to contributions within the meaning of this provision was the result of case law. The Federal Social Court has issued important rulings on this matter, which clarified the distinction between occupational and private provision. For occupational Riester pensions, contribution exemption was introduced later by the Occupational Pensions Strengthening Act to make them more attractive. A look at provisions for pensioners in health insurance can provide additional information. Understanding this legal framework helps you assess your own situation more accurately. Now for the experts' tips for your Riester pension.
Expert tips on Riester pensions and health insurance: plan optimally
To make the most of your Riester pension and avoid unexpected deductions, you should bear a few points in mind. Our expert tip: clarify your health insurance status in retirement early on. Are you likely to be compulsorily insured in the statutory health insurance scheme for pensioners (KVdR) or voluntarily insured? This is a key factor in whether contributions will be due on your Riester pension. Secondly, if you have an occupational Riester pension, make sure it is correctly classified as Riester-subsidised so you can benefit from exemption from contributions. Thirdly, if you are planning a lump-sum payment, keep the thirty per cent threshold in mind in order to make the best use of exemption from contributions (for KVdR-insured persons) and the tax advantages. A full lump-sum payment can be disadvantageous. Fourthly, check whether a Riester pension makes sense for your situation and what alternatives there are. Here is a checklist for your planning:
Check insurance status in retirement (KVdR or voluntary).
For an occupational Riester pension: ensure correct classification as Riester-subsidised.
Lump-sum payment: consider the thirty per cent option and its consequences.
Take tax aspects of the payout into account (deferred taxation).
Review the long-term profitability and costs of the contract.
If necessary, seek independent advice on retirement provision.
Careful planning and information protect you from surprises in later life. These considerations will help you make the right decisions for your supplementary retirement provision. Finally, we summarise the key points and provide an outlook.
In summary, privately funded Riester pensions for retirees mandatorily insured in the KVdR are generally not subject to health or long-term care insurance contributions. This applies both to ongoing pension payments and to partial lump-sum payments of up to thirty per cent. Occupational Riester pensions have also been exempt from this contribution obligation since 2018. The exception is voluntarily insured members of the statutory health insurance scheme, for whom contributions may be levied. The distinction is therefore crucial. The exemption from contributions makes the Riester pension more attractive for a wide range of people. However, it is always advisable to review the individual contract terms and your own insurance status carefully. The tax treatment of the Riester pension in the payout phase (deferred taxation) remains unaffected. We would be happy to assist you with comprehensive retirement planning and with clarifying specific questions about your situation. Use our expertise for your financial future. Information on tax deductibility is also available from us. The right strategy secures you a higher net income in retirement.
Request your individual risk analysis now: Have your insurance situation reviewed free of charge and receive concrete suggestions for optimisation.
More useful links
The German Pension Insurance provides comprehensive information on government support for the Riester pension.
Wikipedia provides a general overview of the Riester pension and how it works.
The Social Association VdK Germany provides information on contribution exemptions for Riester contracts and relevant court rulings.
The German Pension Insurance explains in detail how the Riester pension payout works.
The AOK provides information on the rules for health insurance contributions on pension benefits.
The German Insurance Association (GDV) provides a brochure with basic information on the Riester pension.
The German Pension Insurance explains who particularly benefits from the Riester pension.
The German Council of Economic Experts provides a working paper with more in-depth analyses of the Riester pension.
FAQ
Are Riester pensions generally subject to health insurance contributions?
No, for the majority of Riester savers who are compulsorily insured under the pensioners’ health insurance scheme (KVdR), no health or long-term care insurance contributions are payable on privately financed Riester pensions, and since 2018 also on company Riester pensions. An exception applies to people with voluntary statutory health insurance.
What changed in 2018 regarding health insurance contributions on occupational Riester pensions?
Since 2018, occupational Riester pensions have also been exempt from the obligation to pay contributions to statutory health and long-term care insurance during the payout phase. This has put them on an equal footing with privately financed Riester pensions.
I have voluntary statutory health insurance. Do I have to pay contributions on my Riester pension?
Yes, as a voluntary member of the statutory health insurance scheme, you are generally required to pay health insurance and long-term care insurance contributions on both ongoing Riester pension payments and lump-sum payouts.
What is the maximum amount I can have paid out of my Riester pension free of contributions (insured under the statutory health insurance scheme for pensioners, KVdR)?
At the start of the payout phase, you can have up to 30 per cent of your saved Riester capital paid out as a lump sum without incurring health and long-term care insurance contributions, provided you are compulsorily insured in the KVdR.
Does it make a difference whether my employer was involved in the Riester pension?
Previously, this was relevant to the obligation to pay contributions (keyword: occupational pension provision). However, since the 2018 legislative change, occupational Riester pensions involving the employer are also exempt from health insurance contributions in the payout phase for people insured under the pensioners’ health insurance scheme (KVdR).
Where can I find the statutory regulations on the obligation to pay contributions for Riester pensions?
The relevant provisions can be found, among other places, in Book Five of the Social Code (SGB V), in particular Section 229 SGB V concerning pension benefits. Decisions of the Federal Social Court have also helped to clarify the matter.
