Senior woman with banknotes: the approval of the Bundestag is considered a formality
Photo: imagebroker / IMAGO
Seniors who have not yet reached the regular retirement age should be able to earn unlimited additional income in the coming years without the early retirement pension being reduced.
In the past two years, the additional earnings limit for early retirees was around 46,000 euros as part of a temporary special corona regulation.
Without the planned change in the law, it would automatically fall back to 6,300 euros per year on January 1, 2023.
“Instead of extending the exemption from the corona crisis, the limit will now finally be dropped,” says Daniela Karbe-Gessler from the Taxpayers’ Association.
The Bundestag still has to approve the law, but according to Karbe-Gessler this is a mere formality.
There should also be significant improvements for recipients of a disability pension.
In the case of a full disability pension, annual additional earnings of around EUR 17,800 should not be taken into account.
In the future, the limit will be redefined annually and adapted to the development of other social security limits, according to Karbe-Gessler.
Part-time job required to file a tax return
Irrespective of the additional income limit, the additional income is taxable if the basic tax allowance is exceeded together with the pension.
In any case, filing a tax return is mandatory.
Karbe-Gessler advises that early retirees with a part-time job could also claim travel expenses or costs for work clothing and work equipment as income-related expenses.
Seniors who have already passed the regular retirement age are not affected by the additional earnings limit.
They can top up their pension as much as they like without having to fear a reduction.