Beitragsentlastung im Alter

What changes at retirement?

Beitragsentlastung im Alter is a collective name for several mechanisms that reduce your PKV premium at or around retirement. The term is often used as if it meant a single feature, but it is really a stack of separate effects that kick in at different points.

The four built-in mechanisms

1. The 10 % surcharge ends after the calendar year you turn 60 (§ 149 VAG)

From age 21 to the end of your 60th year, German law requires a 10 % surcharge on top of your base premium. Every cent goes into the ageing provision (Altersrückstellung).

The cut-off is calendar-year-based, not birthday-based. Someone who turns 60 in March pays the surcharge until 31 December of that year; it ends automatically on 1 January of the following year, whether you are still working or not. For a €550 base premium, that is €55 off the first invoice of the new year.

2. Krankentagegeld cancellation at retirement

The Krankentagegeld (daily sickness allowance) is income replacement. Once you are no longer earning, you no longer need it. The tariff can be cancelled at retirement, removing that line from your premium. The saving depends on the daily benefit level and is best read off your current premium schedule.

3. § 12a VAG reserve usage from age 65

From age 65, insurers are required to deploy part of your accumulated ageing provisions to stabilise the premium against future increases. This is the "Beitragsteil zur Limitierung" under § 12a VAG, a legally mandated reserve drawdown that dampens adjustments which would otherwise raise the premium for older cohorts. Effects vary by tariff and by how well the reserve has developed; the size is insurer-calculated rather than reducible to a single market range. Active premium reduction from surplus reserves only kicks in at much higher ages, typically the early 80s.

4. DRV subsidy on the state pension

The Deutsche Rentenversicherung adds a contribution subsidy of 8.75 % in 2026 of your state pension toward your PKV-Krankenversicherung premium (the KV share only; the Pflege share is not subsidised). This is the PKV mirror of the employer subsidy during working life, and like the employer subsidy, it is capped at half your actual KV premium.

Combined effect

The two predictable reductions are the § 149 surcharge ending (an exact −10 % off the pre-60 premium) and Krankentagegeld cancellation (variable, depending on the prior daily benefit). § 12a VAG and the DRV subsidy are separate effects, working as a stabiliser and as a subsidy respectively, not as further reduction mechanics. Measurable, but not dramatic. Healthcare costs genuinely rise with age, and the reserve-based mechanisms are dampeners, not windfalls.

The optional Beitragsentlastungstarif (BET)

In addition to the built-in mechanisms, most insurers offer an optional add-on tariff, the Beitragsentlastungstarif (BET). The mechanic:

• During working life, you pay an additional monthly contribution on top of your base premium

• From a contractually agreed age (typically 65), the BET reduces the base premium by a fixed euro amount each month, for life

• Reduction is calculated individually by the insurer at contract inception and varies substantially with entry age, monthly contribution, and tariff

The BET is tax-deductible as Basisvorsorge (basic-provision tax category) under § 10 Abs. 1 Nr. 3 EStG, within the general cap, as long as the contribution does not lift total health cover above the Basisvorsorge scope. Employer subsidy is also possible under § 257 SGB V, provided the employer cap is not already exhausted.

Is a BET worth it?

It depends on four variables:

• Entry age, younger entries produce more reduction per euro paid

• Time horizon, a BET bought at 55 with a payout start at 65 has 10 years to accumulate and a roughly 25-year payout phase at average life expectancy

• Tax rate, a higher marginal rate increases the net value of the tax deduction

• Alternative investments, the internal return rate of a BET is relatively modest; in some profiles a separate long-term investment can outperform

A BET is not universally better or worse than investing the same euros yourself. For people who want a disciplined, contract-bound reduction guaranteed for the rest of their life, it is an easy fit. For people comfortable with their own investment plan, a higher-yield route may win.