Retirement for the Self-Employed: AVD, Rürup or GRV?

Tilman Freyenhagen

Published on 18 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

This article was written by an author with the support of AI.

The New Status Quo from 2027: The Self-Employed in the Altersvorsorgedepot

Starting on January 1, 2027, self-employed professionals and freelancers will gain direct access to state-subsidized private retirement savings in the newly created Altersvorsorgedepot (AVD) for the first time. Under the passed Altersvorsorgereformgesetz, the fundamental choice for the self-employed expands from two options (basic pension/Rürup or voluntary statutory pension insurance) into a comprehensive three-way decision.^[1] Anyone earning commercial or freelance income and submitting a tax return will be directly eligible for subsidies.

The government subsidy in the AVD is calculated proportionally across two tiers based on personal contributions: for the first 360 euros of annual contributions, the state pays 50 cents per euro saved, amounting to up to 180 euros.^[2] For any additional personal contribution between 361 euros and the subsidized maximum cap of 1,800 euros per year, 25 cents per euro saved is provided, yielding up to 360 euros from this second tier.^[2] Savers who fully maximize the subsidized annual limit of 1,800 euros will therefore receive the maximum basic subsidy of 540 euros per year starting in 2027.^[1]

• Basic subsidy, calculated in two tiers: a 50 percent subsidy rate on the first 360 euros of annual personal contributions (up to 180 euros subsidy), followed by a 25 percent subsidy rate on every additional euro up to the subsidized ceiling of 1,800 euros per year (up to 360 euros subsidy)^[2]
• Combined, both tiers yield a maximum basic allowance of 540 euros per year starting in 2027, achieved when the subsidized personal contributions of 1,800 euros per year are fully utilized
• Total contribution ceiling: up to 6,840 euros per year can be paid into the contract, with the first 1,800 euros receiving direct subsidy support^[2]
• Minimum personal contribution for the basic subsidy: 120 euros per year; regular savings contributions can start from as low as 10 euros per month^[2]

With this step, lawmakers are closing a long-standing gap: While self-employed individuals without a spouse subject to statutory pension insurance were largely excluded under the previous Riester framework, the pension depot for the self-employed now enables flexible, capital-market-based ETF retirement provision with direct government subsidy rates.

Direct Criteria Comparison: AVD, Rürup, and Voluntary Statutory Pension

For the strategic retirement planning of self-employed individuals, three subsidized or tax-privileged core systems are available from 2027 onward: the new Altersvorsorgedepot (3rd pillar), the basic pension or Rürup pension (1st pillar), and voluntary contributions to the statutory pension insurance (GRV, 1st pillar). These three building blocks differ fundamentally regarding contribution flexibility, tax deductibility, capital accessibility, and inheritability.

An essential legal distinction applies to existing contracts: transferring accumulated capital from an existing basic pension contract ("Rürup contract") into a retirement provision depot is legally neither planned nor permitted. As a basic provision under the 1st pillar, the Rürup pension remains permanently tied to a lifelong annuity. A statutory transfer route into the AVD exists exclusively for legacy Riester contracts.

When deciding between the models, the following principle applies: High earners seeking to deduct very substantial sums from their taxes will find a potent tax reduction tool in the Rürup for the self-employed. Conversely, savers who prioritize cost transparency, modern ETF investment options, and flexible withdrawal plans will find the AVD to offer a substantially more agile structure.

Eligibility Check: Who Is Actually Entitled to AVD Subsidies?

Direct subsidy entitlement under the Altersvorsorgedepot is linked to two specific formal prerequisites for self-employed individuals: earning relevant qualifying income and filing an income tax return. Specifically included are individuals with income from commercial operations under § 15 EStG as well as from self-employed freelance activities under § 18 Abs. 1 Nr. 1 bis 3 EStG (e.g. freelancers, physicians, engineers, journalists) who have filed a tax return for the respective contribution year. This subsidy entitlement applies regardless of whether voluntary contributions are additionally made to the statutory pension insurance.^[3]

Mandatory members of a professional pension scheme (e.g. lawyers, notaries, tax advisors, architects) are likewise directly eligible for subsidies. The prerequisite is that, at the latest by the end of the contribution year, they have given written or electronic consent to their pension institution allowing it to transmit their membership in the eligible group of persons annually to the Central Subsidies Authority for Retirement Assets (ZfA), specifying their tax identification number. Exactly how many self-employed individuals and freelancers will gain access to subsidies in this way can currently only be estimated roughly.

• Commercial tradespersons (§ 15 EStG) filing an income tax return
• Freelancers and self-employed professionals (§ 18 Abs. 1 Nr. 1 bis 3 EStG) filing an income tax return
• Mandatory members of professional pension schemes with consent for data transmission to the ZfA
• Child allowance: one euro of subsidy for each euro paid in, up to a maximum of 300 euros per child and year, achieved with a personal contribution of 300 euros^[2]
• Career starter bonus: a one-time 200 euro bonus upon entering into a contract before the 25th birthday^[1]

In addition to the basic allowance, the tax office automatically checks during the annual income tax assessment via the favorable tax treatment test (Günstigerprüfung) whether the special expense deduction for the contributions paid results in a tax benefit exceeding the allowance. This opens up further tax advantages for the self-employed without requiring a separate application.

Decision Tree: Which Path Suits Your Profile?

Because the three retirement provision paths possess distinct strengths, there is no generic one-size-fits-all solution. The suitable strategy derives from your income volatility, your marginal tax bracket, and your preference regarding flexible access to capital.

1. Profile A: Fluctuating income & desire for capital market returns -> Focus on the Altersvorsorgedepot. Those who wish to reduce or pause contributions during weaker business years benefit from the high flexibility of the AVD, with savings rates starting from just 10 euros per month. Furthermore, in the payout phase, the AVD allows for a time-limited payout plan lasting at least until age 85 instead of mandatory lifelong annuitization.
2. Profile B: High, stable income with top marginal tax bracket -> Focus on the Rürup pension. With consistently high taxable profits, the basic pension (Basisrente) allows for the deduction of retirement expenses far beyond the 1,800 euro annual subsidized personal contribution cap in the AVD. This substantially reduces the annual tax burden here and now, although it irrevocably locks the capital into a lifelong annuity.
3. Profile C: Focus on basic security & closing contribution gaps -> Focus on voluntary statutory pension insurance (GRV). Self-employed individuals who already hold entitlements in the statutory pension scheme can fulfill qualifying periods for old-age pensions through voluntary contributions while securing claims to medical rehabilitation. Payouts are made as a pay-as-you-go, inflation-adjusted pension with no capital market risk.
4. Profile D: Hybrid strategy (combination model). Many self-employed individuals combine the basic security of the Rürup pension or GRV to cover fixed baseline living costs in old age with an AVD account to flexibly benefit from ETF returns and government subsidies.

Note on calculations: All model assignments serve orientation purposes and are based on typified assumptions. No investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Outlook: What Remains to Be Finalized Before the 2027 Launch

With the passage of the Retirement Provision Reform Act (Altersvorsorgereformgesetz) by the Bundestag and Bundesrat in May 2026, the statutory foundation for the Altersvorsorgedepot is set.^[1] Nevertheless, the practical market landscape remains in a transitional phase until the official launch on January 1, 2027.

Leading up to the market rollout, certification procedures for concrete retirement depot products must be completed by brokers, banks, and fund providers. In addition, detailed statutory instruments and administrative guidelines concerning the technical interface between tax offices, providers, and the ZfA will be finalized during the course of 2026.

• Certification of the first AVD product offerings and ETF portfolios by supervisory authorities
• Availability of the cost-effective standard depot (capped at a maximum effective cost of 1.0 percent)
• Final definition of reporting procedures and technical interfaces for the self-employed at the ZfA
• Publication of specific contractual terms and fee schedules by neobrokers and financial institutions

For self-employed individuals, this means there is no reason to rush into signing legacy products. The period leading up to late 2026 is ideal for analyzing your own income structure, reviewing existing contracts, and preparing your baseline setup for 2027.

Next Steps: Calculate and Secure Your Strategy

Which of the three paths or which combination represents the optimal retirement provision for you personally depends on your individual marginal tax burden, the stability of your income, and your preference for asset control versus a lifelong annuity. A structured criteria comparison provides the framework, but cannot replace the specific financial figures of your business.

For a precise mathematical classification, use our Altersvorsorgedepot subsidy calculator and select „Selbständig“ as your employment status. The tool determines the subsidy rate, your entitlement to basic and child allowances, and the depot balance you are likely to have at the start of retirement — the basis for the later payout plan.

1. Check eligibility: Do you generate income under Section 15 or Section 18 EStG and file an income tax return?
2. Calculate subsidies: Use the calculator to determine the optimal personal contribution to fully utilize the 540 euro basic allowance and child allowances.
3. Define your pension mix: Weigh how much to allocate to the flexible AVD versus tax-optimized Rürup or statutory pension scheme (GRV) components.
4. Consult an independent advisor: In complex situations, have your overall tax and actuarial profile analyzed individually.

If you would like to integrate Rürup components or voluntary statutory pension contributions alongside AVD subsidies into your long-term retirement planning, our Independent Advisory Referral Service is here to assist. We connect you with licensed, independent financial advisors who support your overall strategy objectively and neutrally.

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