Retirement and part-time job: important deadline has expired - retirees need to know that now

Anyone who is in early retirement and is still working should note an important legal change - otherwise the pension may be cut.

Berlin - More and more retirees are working.

Be it because it is difficult to let go of the job or because the pension is poor.

There are many reasons to work in old age.

However, there are some rules of the game and a deadline that will soon expire so that the statutory pension does not suffer.

In general, the following applies: Additional earnings include wages from an employee relationship as well as income from self-employed work or a commercial enterprise.

How much you can earn as a retiree depends primarily on the retirement age.

Those who retire after reaching the standard retirement age do not have to fear any deductions from their pension if they earn additional income.

Those who retire earlier (and at a discount) have been able to earn up to 6300 euros a year since the introduction of the Flexi Pension Act in 2017.

40 percent of what is taken in excess is deducted from the pension contributions.

Actually, because there is currently a crucial but.

Part-time job in retirement: Corona special rule for additional income limit expires

In the first year of the pandemic, the additional income limit for early retirees was raised from 6300 euros to an impressive 44,590 euros, and in 2021 to 46,060 euros.

In doing so, the government tried to counteract the increased need for personnel in many professions, for example in the health sector.

According to previous plans, the old limit of 6300 euros will apply again from 2022.

This means: recipients of an early retirement pension who earn more than 6,300 euros gross in a calendar year would then have to expect their pension to be reduced again.

A tax advisor can sound out whether and when additional earnings are worthwhile in individual cases or not.

Pension insurance: This is what retirees have to bear in mind when they take on a part-time job

What should not be ignored in the overall bill: For early retirees, a part-time job, unlike regular retirees, is subject to pension insurance.

So you continue to pay into the pension fund and then get more money when you reach the standard retirement age.

Pensioners who have already reached this limit - it has been gradually adjusted since 2012 - no longer have to pay into the pension insurance if they earn additional income, but can do so on a voluntary basis in order to increase their earnings.

An exception is marginal employment on a EUR 450 basis, i.e. the mini job.

Here, the personal contribution can be invested in the pension - or not.

These reporting requirements apply to additional earnings in early retirement

There are also reporting obligations to be observed: Early retirees who work part-time must report this to their statutory pension insurer - as well as the expected amount of additional income.

In the following year, the so-called peak billing occurs.

The pension insurance then asks early retirees to report their actual earnings for the previous year.

The expiring special corona rule should therefore be taken into account now.