Who benefits – and who doesn't, if the pension is fully taxed?
Created: 4/4/2022 1:56 p.m
By: Janine Napirca
The traffic light coalition wants to fully tax the pension.
You should be able to claim pension insurance contributions for tax purposes.
If, as a pensioner, you do not receive at least as many tax-free payments as you paid taxably into the statutory pension insurance* during your working life, you are
affected by the so-called
double taxation of your pension.
To ensure that this doesn't happen again in the future, the federal government wants to make a significant change to prevent pensions from being taxed twice in the future.
But not all vintages will benefit.
Preventing double taxation: What changes in pensions is the traffic light coalition planning?
According to a report by
InFranken.de
,
all income above a certain tax-free allowance is currently taxed in Germany
will.
This means that employees first pay taxes on the insurance contributions and then on the pension themselves.
The traffic light coalition wants to prevent double taxation and therefore
fully tax the statutory pension in the future
.
In contrast, the
contributions for pension insurance
should be tax deductible in full.
Why are pensions taxable?
© Sascha Steinach/Imago
Who is affected by double taxation of pensions?
According to the report, around
5 million German pensioners are currently affected by double taxation of their pensions
.
The remaining 15 million pensioners in Germany either retired before the new regulation or receive so little pension that no taxes have to be paid anyway.
You can read here whether you are entitled to a basic pension.
According to the report, anyone who retires in 2021 will have to
pay tax on 81% of the pension payment at the individual tax rate
.
According to the current status, those who retire in 2040 should pay tax on 100% of their pension.
According to the report, this
transition period is to be extended to 2060
by slowing down the annual increase in taxation.
For comparison: an annual growth rate of 0.5% is currently assumed.
You can find out how high the pension increase will be in 2022 here.
Who benefits from the changes in pensions - and who does the innovation in terms of double taxation of pensions harm?
How the abolition of double taxation affects the pension depends heavily on the year of birth.
While those born
in 1980 do comparatively well
- according to the report, average earners can look forward to a tax advantage of around 9,950 euros, top earners even more than 18,800 euros -
future pensioners born in 1960
are at a disadvantage .
According to the report,
those who were born in
1990
do not do well either
.
It should also be borne in mind that the tax savings are individual and must be calculated on the one hand based on the year of birth and on the other hand on the basis of income.
Who can actually take early retirement as an employee?
(jn)
