As of: March 26, 2024, 12:30 p.m
By: Laura Hindelang
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Pensions will be taxed less in the future.
This is determined by the Growth Opportunities Act.
This can save certain vintages several thousand euros.
Pensioners will have to pay less taxes in the future.
This is the result of the Growth Opportunities Act passed on Friday.
In the future, the tax burden on pension payments will rise much more slowly than previously planned.
This means future pensioners can save several thousand euros – if they were born in certain years.
Double taxation of pensions should be prevented
The new law is intended to be part of the solution to a long-standing nuisance: double taxation of pensions.
In 2004, the federal government decided that future pensioners would have to gradually tax their retirement benefits, explains
Bild
.
Since then, the proportion of pensions on which taxes are levied has been increasing, year by year.
This means that working people have to pay taxes on pension benefits both during their working life and on the pension itself during retirement. This model has been criticized.
The Federal Finance Court recently ruled that double taxation must be prevented.
Pensions will be taxed less in the future, meaning some age groups can save several thousand euros.
© Michael Gstettenbauer/Imago
The government is complying with the ruling with the Growth Opportunities Act.
From 2023, the tax share will only increase by 0.5 percent and not by 1 percent as previously planned, reports the
Finanztip
portal .
This means that the point at which 100 percent of the pension is taxed is pushed back.
It was originally planned that pensioners would have to pay tax on their full pension from 2040, but now it is 91 percent at this point.
18 years later, in 2058, retirees will finally have to pay tax on their entire pension, explains
Focus
.
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This means that many future pensioners will pay significantly less taxes - even if the percentage correction seems meager, writes the
Berliner Morgenpost
.
However, the respective tax portion of a year applies for the entire duration of the pension, often over decades, which is why the savings can amount to several thousand euros.
Those born between 1975 and 1980 will particularly benefit, explains
Bild
.
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According to model calculations by pension expert Werner Siepe, an average earner born in 1975 will have to pay a total of 12,500 euros less in taxes in the future.
A top earner could even save 23,500 euros.
For average earners born in 1980, the relief could be just under 10,000 euros.
Since the current law is not sufficient to prevent double taxation, further measures are necessary, emphasizes the
Berliner Morgenpost
.
According to the
Ministry of Finance,
these should be regulated by law “soon in a third step”.