The Limited Times

Now you can see non-English news...

Social security contributions and taxes: Pensioners will have to reckon with these contributions in 2023

2023-01-05T09:01:00.754Z


Social security contributions and taxes: Pensioners will have to reckon with these contributions in 2023 Created: 05/01/2023 09:48 By: Christian Einfeldt Even in 2023, pensioners with statutory insurance will not be fully entitled to their pension income. How big are the deductions. Berlin – Social security contributions and taxes will continue to shape the everyday lives of pensioners in 2023


Social security contributions and taxes: Pensioners will have to reckon with these contributions in 2023

Created: 05/01/2023 09:48

By: Christian Einfeldt

Even in 2023, pensioners with statutory insurance will not be fully entitled to their pension income.

How big are the deductions.

Berlin – Social security contributions and taxes will continue to shape the everyday lives of pensioners in 2023.

You have to pay for financial benefits that arise, for example, from compulsory health and long-term care insurance.

As of 2022, according to the Federal Ministry of Health, the corresponding contribution rate was 14.6 percent - a uniform amount nationwide.

One half is paid by the pension insurance agency, the other half by the pensioner concerned.

However, further costs may be incurred in 2023.

Social insurance:

German pension insurance

Founding:

October 1, 2005

Insured:

56.7 million (December 31, 2019)

Pensioner:

21.2M (July 1, 2020)

Contributions to health and long-term care insurance: deductions from pension income

At a time when spending is consistently high due to the energy crisis and inflation, and tips for consumers on how to cope with everyday life are becoming more relevant, it is helpful to be aware of all expenses and deductions.

This applies to employees as well as to pensioners, who can save a lot of money in 2023 with the help of eight grants.

The gross pension is reduced by a not inconsiderable amount due to contributions to health and long-term care insurance.

According to the online portal

your-pension.de

, further additional contributions may also be incurred at this point.

These vary depending on the choice of health insurance company.

However, one thing is the same for those with statutory health insurance: Every month, the German pension insurance automatically collects 7.3 percent of the pension for health insurance benefits.

In addition, there is another 3.05 percent (or 3.4 percent for pensioners without children) that goes directly into the long-term care insurance.

Social security contributions and taxes: what are the financial deductions for pensioners in 2023?

(Iconic image) © Westend61/Imago

Taxation of the pension: In 2023, the basic allowance will increase to 10,908 euros

For pensioners, for whom the year 2023 promises more pension and basic income, there is also something else to consider: According to the German pension insurance, there are also tax obligations, which have accounted for a fixed proportion of the gross pension as taxable income since 2005.

In 2022 it was the case that 82 percent of the gross pension had to be taxed.

According to reports from the

Frankfurter Rundschau

, the percentage will rise even further in 2023: 83 percent will then be taxed.

Those who retire around 2040 will then have to deal with a 100 percent tax rate.

A look into the future shows that the amount of taxes depends to a large extent on when you retire.

24hamburg.de newsletter

In the 24hamburg.de newsletter, our editors put together content from Hamburg, Northern Germany and HSV.

Every day at 8:30 a.m., six current articles land in your e-mail inbox - registration is free of charge, you can easily unsubscribe by clicking at the end of each sent newsletter issue.

While the pension allowance is 17 percent in 2023, it will be completely eliminated in 2040.

To provide relief in times of the inflation crisis, it could not only help pensioners to deduct expenses from their taxes: in 2023 the federal government increased the basic allowance from 10,347 euros to 10,908 euros - the Inflation Compensation Act takes effect.

Accordingly, pensioners whose income is below this value do not have to pay taxes.

Source: merkur

All life articles on 2023-01-05

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.