When you're self-employed, nobody pays into your pension but you. No employer, no automatic process, no mandatory contribution running in the background. That's freedom and responsibility at the same time. With a clear roadmap, it becomes an advantage.
The short answer. As a self-employed person, you build your retirement provision in four steps. First, the foundation: an emergency fund and protection for your ability to work. Second, calculate your pension gap. Third, mix the building blocks — a state-supported Basisrente (tax-deductible basic pension, “Rürup pension”) for the tax advantage, a flexible fund portfolio for agility, plus, optionally, voluntary contributions to the statutory pension and tangible assets. Fourth, start early, because time is your biggest lever.
I'm Eduard Strekert, financial advisor for Deutsche Vermögensberatung AG (DVAG), tied agent, based in Lüdenscheid, and I support self-employed professionals and business owners in the Märkischer Kreis region as they build their retirement provision. Let's take a calm look at the roadmap behind it.
Why does retirement planning work differently for the self-employed?
In salaried employment, the pension contribution is shared. The employer pays half, and the rest runs automatically in the background. When you're self-employed, you carry everything yourself and decide everything yourself. That sounds like more work, but it's also your biggest lever. You determine the amount, the form, and the pace of your retirement provision.
There's a second difference on top. Your income fluctuates. Good months are followed by quiet ones, and sometimes a single large project carries an entire year. Your retirement plan has to keep up with that. A rigid product that demands the same high payment every month rarely fits an entrepreneur's life. Flexibility isn't a luxury here — it's a prerequisite.
Step 1: Foundation first, returns second
Before a single euro flows into a long-term investment, the foundation has to be in place. Otherwise you're building on sand.
- Emergency fund. Three to six months of expenses, liquid in an instant-access savings account, thought through separately for private and business needs. If your income fluctuates strongly, aim for the upper end. This money isn't there for returns — it's there for restful nights.
- Protect your ability to work. Your ability to work is your most important asset. If it fails, your income stops immediately. Income protection belongs before any savings plan.
- Health insurance with retirement in mind. Make sure your premiums stay affordable in retirement, too. More on this in the article on private health insurance (PKV) for the self-employed.
This first step is unspectacular — and that's exactly why it matters so much. Skip it, and the first setback often forces you to unwind your entire wealth-building plan.
Step 2: How do you calculate your pension gap?
Retirement planning without a target is saving blind. Before you choose building blocks, you need a number. How much money will you need per month later on, and how much of it is already covered? Three steps take you to your gap.
- Check existing entitlements. See whether you already have entitlements with the Deutsche Rentenversicherung (German statutory pension insurance) from earlier years as an employee. Your annual pension statement shows where you stand.
- Define your target pension. Work out what you'll need per month in retirement, and factor in inflation. What's enough today won't be enough in thirty years.
- Take the difference. Whatever is missing between your target pension and your covered entitlements is your pension gap.
For a rough sense of how big it typically turns out, see the pension gap overview.
Step 3: Which building blocks make sense for the self-employed?
There is no single right contract. There's a mix that fits your income, your tax burden, and your time horizon. These four building blocks form the frame.
State-supported basic provision. As a self-employed person, you can deduct contributions to a fund-based Basisrente — often called Rürup — as special expenses: in 2026 up to 30.826 euros per year, or 61.652 euros for jointly assessed couples (§ 10 EStG). How much that saves you depends on your income and tax rate. The catch: the later pension is taxed in retirement. So it's a tax deferral, not a tax gift. On top of that, the capital is locked in until retirement. That's why only part of your budget belongs here — not all of it.
Flexible pension portfolio. A fund-based solution is the agile counterpart. You raise your savings rate in good months, pause it in quiet ones, and you can access the money if you need to. The savings plan calculator shows you how a monthly contribution can develop over the years. Over time, three levers work for you:
- Compound interest.
- Regular saving, which smooths out fluctuations.
- Above all, time.
For perspective: investment funds and ETFs aren't opposites — they're two ways of investing with broad diversification. What fits you depends on costs, service, and how much guidance you want.
Voluntary statutory pension. As a self-employed person, you can pay into the statutory pension insurance — voluntarily or, depending on your profession, compulsorily. It insures you against a long life and delivers predictable entitlements whose amount follows the statutory pension value. The return is usually lower than in the capital markets, but the payments are dependable. For many, it's one building block, not the whole solution.
Tangible assets and real estate. Your own practice, your office, or a rented-out property can save you rent in old age or generate income. Especially with your own practice, though, the concentration risk is high. If your entire wealth sits in a single property, diversification is missing. Tangible assets complement your retirement provision — they don't replace it.
A model case from practice
Take Max, 36, a self-employed IT consultant from the Märkischer Kreis region. His income is good but fluctuates with his project pipeline. Max wants to have around 2.000 euros per month available later on top of everything else, and today has about 500 euros a month to spare for it.
Instead of putting everything into one contract, Max splits those 500 euros. Around 150 euros flow into a fund-based Basisrente to lower his tax burden. The remaining roughly 350 euros go into a flexible pension portfolio he can scale down in slow months. His emergency fund and income protection were sorted out beforehand.
Whether these 500 euros will ultimately close the targeted gap of 2.000 euros depends on the term, costs, and investment performance. That's exactly what we calculate for your specific case instead of advertising a blanket figure. The decisive lever isn't the perfect product choice anyway — it's the early start. Over roughly thirty years, depending on performance, compound interest can turn regular contributions into significantly more than the sum paid in. Figures like these are a sample calculation, not a promise, because capital investments fluctuate. The direction, though, stays the same. If you start at 36, you have the strongest ally on your side: time.
Retirement planning for the self-employed doesn't run on autopilot. Flexible doesn't mean arbitrary — a portfolio that's constantly paused or raided builds nothing. Subsidized contracts lock in capital, and tangible assets bring concentration risks. There is no off-the-shelf solution, only the right mix for your case. That's exactly what we look at together before anything gets signed.
The most common retirement planning mistakes
- Starting too late. Every year you start earlier, compound interest works longer for you.
- Betting everything on one card. A single contract is rarely flexible and tax-efficient at the same time.
- Ignoring taxes. When you're self-employed, the tax effect of your retirement provision is often as valuable as the return itself.
- Stopping everything in quiet months and forgetting about it. Flexibility is made to be used deliberately, not as an exit.
Frequently asked questions about retirement planning for the self-employed
Do the self-employed have to pay into the statutory pension?
Most don't. Some professions are subject to mandatory insurance, though, and in the first years of self-employment an obligation to register may apply. If you're not compulsorily insured, you can contribute voluntarily or build your provision entirely privately.
What is the Rürup pension and who is it worth it for?
The Rürup pension, or Basisrente, is a state-supported retirement product whose contributions you can deduct as special expenses — in 2026 up to 30.826 euros per year. It pays off above all if your tax burden is high. In return, the capital is locked in until retirement and the later pension is taxed.
How much should I save for retirement as a self-employed person?
A one-size-fits-all number is misleading. What makes sense is the amount that closes your personal pension gap, matched to your income and time horizon. Starting early and saving regularly matters more than a high monthly rate.
Basisrente or fund portfolio — which is better?
It's not an either-or. The Basisrente delivers the tax advantage but locks in your capital. The fund portfolio stays flexible but comes without state support during the savings phase. For many self-employed people, a mix of both makes the most sense.
When should I start my retirement planning?
As early as possible, because compound interest needs time. Starting at 50 still makes sense — you simply have fewer years in which the money works for you.
Do you also advise the self-employed in person in the Märkischer Kreis region?
Yes. I'm based in Lüdenscheid, advise in person or via video, and support self-employed professionals and business owners across the entire region.
Your next step in the Märkischer Kreis region
You don't have to make this decision today, and certainly not alone. A first conversation doesn't tie you to anything. It means you'll know your pension gap and be able to place your tax burden. You'll know which mix fits your income before you decide.
I'm Eduard Strekert, financial advisor for Deutsche Vermögensberatung AG (DVAG), tied agent, based in Lüdenscheid. I support self-employed professionals and business owners in the Märkischer Kreis region in building their retirement provision with structure, at their own pace. There's no need to rush anything. Next step: book a free initial consultation, and we'll look at your specific situation together.
Related reading:
- Private health insurance for the self-employed: what you really pay
- How big is your pension gap?
- Financial advisory for the self-employed in the Märkischer Kreis region
Eduard Strekert is a financial advisor for Deutsche Vermögensberatung AG (DVAG), tied agent. This article is general information and does not replace personal advice. It does not constitute investment or tax advice.