Making the most of private retirement provision in your tax return with ELSTER
17.04.25
8
Minutes
Katrin Straub
Managing Director at nextsure
Private retirement provision is an important building block for your financial future. However, many people do not know how to declare it correctly in their tax return, especially via ELSTER, and thereby save on tax. This article shows you what you need to pay attention to.
The topic in brief and concise terms
Contributions to the Riester pension (Schedule AV) and Rürup pension (Schedule Vorsorgeaufwand) can significantly reduce your tax burden.
Since 2023, retirement provision contributions have been 100% tax-deductible up to high maximum amounts (e.g. €27,566 for single people in 2024).
Carefully review the data electronically submitted to ELSTER by insurers to avoid errors and financial disadvantages.
Understanding the basics of private pension provision in your tax return
Private retirement provision is a crucial factor in financial security in later life. Contributions to various pension schemes can reduce your tax burden. For the correct declaration in your tax return via ELSTER, specific supplementary forms such as Anlage AV for Riester contracts or Anlage Vorsorgeaufwand for Rürup pensions and other pension expenses are relevant. It is important to know the differences and where each entry should be made in order to make full use of all benefits. For example, pensions from certified retirement provision contracts (Riester pension) must be declared in Anlage R-AV/bAV. Digitalisation through ELSTER simplifies many things, but it still requires care when entering data. This will help ensure that the tax office correctly takes your expenses into account and that you do not pay more tax than necessary. Knowing the current maximum amounts and regulations is essential.
Quick Facts: The essentials of retirement provision and ELSTER at a glance
For a quick overview, we have summarised the key points for your private retirement provision in your tax return with ELSTER. Many taxpayers do not make use of all opportunities to reduce their tax bill.
Here are the key points:
Riester pension contributions are entered in Schedule AV to secure allowances and the special expenses deduction.
Rürup pension contributions (basic pension) belong in Schedule Vorsorgeaufwand (line 8).
Traditional private pension insurance policies (taken out before 2005) may, in certain circumstances, be claimed as special expenses.
Since 2023, retirement provision expenses are 100 per cent deductible up to the maximum amount of EUR 26,528 (single people) or EUR 53,056 (married couples). For 2024, this amount increased to EUR 27,566 or EUR 55,132.
ELSTER enables the electronic submission of the data; providers often report the contributions directly to the tax office.
Schedule R-AV/bAV is relevant for benefits from Riester pensions and occupational pensions in the payout phase.
This overview helps you set the right course for your tax return and avoid overlooking any important items.
Practical guide: Enter Riester pension correctly in ELSTER
The Riester pension is a popular form of private retirement provision that is subsidised by the state. To benefit from the allowances and the additional special expenses deduction, it is crucial to enter the information correctly in your tax return via ELSTER. For this you need Annex AV. In this annex, you provide details of your direct or indirect eligibility for funding and enter the relevant data for your Riester contract. The amount of the contributions often does not need to be entered manually, as providers transmit this data electronically to the tax authorities. Nevertheless, it is advisable to check the data that has been transferred. A maximum of EUR 2,100 per year (including allowances) can be claimed as special expenses. The tax office carries out a favourable assessment: if the tax advantage from the special expenses deduction is greater than the allowances, it is granted. Make sure you also provide information about children, as this affects the amount of the allowances. Careful completion of the Riester pension in the tax return secures the maximum funding for you.
Rürup pension (basic pension): How to maximise your tax benefits
The Rürup pension, also known as the basis pension, is aimed primarily at self-employed people and high earners, but is open to all taxpayers. Contributions to the Rürup pension can be claimed as special expenses in the retirement provision expenses section of your tax return via ELSTER. Since 2023, these contributions have been deductible at 100 per cent within the framework of the maximum amounts. For 2024, the maximum amount for single people is EUR 27,566 and for married couples EUR 55,132. The entry is made in line eight of the retirement provision expenses section. Here too, the provider usually transmits the data electronically to the tax office. The Rürup pension does not provide a capital payout, but rather a lifelong pension. Taxation deferred into retirement is a feature of this model. A careful review of the Rürup pension and its tax treatment is advisable in order to make full use of its potential.
Other private pension contracts and their tax treatment
Alongside Riester and Rürup pensions, there are other forms of private retirement provision, such as traditional private pension insurance policies or unit-linked policies. The tax deductibility of these contracts during the accumulation phase is limited. Contributions to private pension insurance policies taken out after 31 December 2004 are generally not deductible as special expenses. One exception is older contracts (concluded before 2005): here, under certain conditions, contributions may be claimed under Section 10(1) No. 2(b) EStG 2004 as other retirement provision expenses, although often only up to a maximum amount of EUR 1,900 for employees or EUR 2,800 for self-employed persons, which is often already used up by health and long-term care insurance contributions. In the payout phase, only the earnings portion is taxed for private pension insurance. This depends on the age at pension commencement; for example, anyone who retires at 65 only has to pay tax on 18 per cent of the private pension. It is important to carefully review the details of your private pension insurance.
Expert insight: Current rulings and planning tips for your retirement provision
The tax treatment of private retirement provision is subject to repeated changes through legislation and case law. An important topic is avoiding double taxation of pensions. The Federal Fiscal Court (BFH) has commented on this in several rulings (e.g. ref. X R 20/19). Although a general case of double taxation was often not identified in the cases reviewed, the calculation methods were nevertheless clarified. For older private pension insurance contracts with a capital option (taken out before 2005), the BFH (ref. VIII R 4/18) ruled that pension payments can remain tax-free until the total amount of pensions paid out reaches the accumulated capital balance. Our expert tip: Check regularly whether your contract data has been transmitted correctly to the tax office and make use of the document retrieval option (pre-filled tax return) in ELSTER. This can help avoid errors. Also note the deadlines: for the 2024 tax return, the filing deadline is 31 July 2025 if you prepare it yourself. If anything is unclear, advice on insurance and tax matters may be useful.
When entering private retirement provision in your tax return via ELSTER, mistakes can easily happen, leading to financial disadvantages. A common mistake is forgetting Annex AV for Riester contracts, which jeopardises allowances and the special expenses deduction. Incorrect entries for combined products, such as a Rürup pension with occupational disability insurance, are also common. Here, the total contribution must be correctly allocated (often in line eight of the Vorsorgeaufwand annex for the basic pension). Many taxpayers fail to check the electronically transmitted data from insurers for plausibility. Another issue is not taking children into account in Riester funding, which leads to lower allowances. In addition, maximum amounts are sometimes misinterpreted or older contracts are not correctly claimed as special expenses. Careful checking of all details and using the help functions in ELSTER or a guide to entering retirement provision can help avoid these mistakes and optimise your tax burden.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive specific suggestions for optimisation.
More useful links
ELSTER offers detailed information on this help page about electronic tax returns, in particular advance payments.
ELSTER provides an overview on this information page of the ELSTER system and its functions for simple electronic tax returns.
The insurers (GDV) provide information in this article about which insurance contributions can be deducted for tax purposes.
Federal Ministry of Finance provides a standard article on the topics of retirement provision and retirement benefits, highlighting important tax aspects.
German Pension Insurance offers comprehensive details on its information page about various forms of retirement provision and the associated benefits.
FAQ
Which form in ELSTER is for my Riester pension?
To claim your Riester pension contributions as special expenses and to secure the allowances, use Annex AV in your ELSTER tax return.
How high is the maximum special expenses deduction for the Rürup pension in 2024?
In 2024, you can claim contributions to the Rürup pension (basic pension) as special expenses in full, up to a maximum amount of EUR 27,566 (single persons) or EUR 55,132 (married couples).
What does deferred taxation mean in retirement provision?
Deferred taxation means that contributions to retirement provision are tax-favoured during the savings phase (e.g. through special expense deductions), but pension payments in old age must then be taxed. This applies, for example, to the state pension, Riester pensions and Rürup pensions.
Can I deduct contributions to a unit-linked pension insurance policy from tax?
Contributions to unit-linked pension insurance policies taken out after 2004 are generally not tax-deductible during the accumulation phase, unless it is a certified Riester or Rürup contract. In the payout phase, usually only the investment income portion is taxed, or the half-income method may apply in the case of a lump-sum payout.
By when do I need to submit my tax return for 2024 to ELSTER?
If you prepare your tax return for the 2024 tax year yourself, the filing deadline is 31 July 2025. If your return is prepared by a tax adviser or income tax assistance association, the deadline is extended to 30 April 2026.
Where can I find my pension contributions on the tax certificate for ELSTER?
Contributions to the statutory pension insurance can be found on your wage tax certificate. For private contracts (Riester, Rürup), you will receive separate certificates from your provider, whose data is often already transmitted electronically to the tax office and can be retrieved in ELSTER.
