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Pension: New law makes early retirement much more attractive

2022-09-25T03:40:58.640Z


Pension: New law makes early retirement much more attractive Created: 09/25/2022, 05:05 By: Patricia Huber From 2023, the additional earnings limit for pensioners could be abolished. However, this would have unforeseeable consequences for the labor market. Munich/Berlin – Retiring earlier is a great wish for many employees. The regular retirement age is now 67 – and early retirement is becomin


Pension: New law makes early retirement much more attractive

Created: 09/25/2022, 05:05

By: Patricia Huber

From 2023, the additional earnings limit for pensioners could be abolished.

However, this would have unforeseeable consequences for the labor market.

Munich/Berlin – Retiring earlier is a great wish for many employees.

The regular retirement age is now 67 – and early retirement is becoming increasingly popular.

This could now even increase again, because with a new legal regulation, the federal government has ensured that it has become much more lucrative to continue working despite a pension.

Pension: No additional earnings limit from 2023

The federal government wants to remove the applicable limits for additional earnings in the event of early retirement.

"The additional earnings limit for early retirement pensions will be lifted and the additional earnings limits for disability pensions will be adjusted," says a draft law that is available to the German Press Agency in Berlin.

Anyone who has retired early no longer has to be careful not to earn too much if he or she is still working on the side.

So far, retirees can only work part-time without restrictions after reaching the regular retirement age.

Otherwise there is a risk of a reduction or even loss of pension entitlement.

According to the current legal situation, from 2023 onwards only an additional income of 6300 euros per year would be exempt from deduction.

For the labor market, that actually sounds good at first.

After all, skilled workers are urgently needed and retirees could, if they wish, get back into the professional world.

FDP parliamentary secretary Johannes Vogel welcomed the project in the

FAZ

as an important breakthrough towards a simple, unbureaucratic solution.

"We cannot afford to do without these people and their wealth of experience," he said

Early retirement: Missing additional earnings limit could exacerbate the shortage of skilled workers

But this shot could also "backfire", warns the economist Martin Werding to the

world.

Because the flexibility that the new regulation brings with it could also have a negative impact on the labor market.

This makes an earlier retirement much more attractive - after all, additional income is always possible if the pension is not enough.

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As a result, the economist also criticizes the deductions that have to be paid on early retirement.

According to Werding, these should be significantly higher.

For each year that you retire earlier, your salary will be reduced later by 3.6 percent.

"Actually correct, however, it should be more like five percent per year," says Werding.

(ph/dpa)

Source: merkur

All news articles on 2022-09-25

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