Additional income, amount and taxes: This will change in 2023 with the pension
Created: 11/23/2022, 3:59 p.m
By: Patricia Huber
In 2023, pensioners will be faced with a number of innovations.
Not only the pension amount is changing, there are also new rules for additional earnings.
Munich/Berlin – With the turn of the year, there are also new regulations for retirees.
There will probably be changes not only in the amount of the pension, but also in taxation.
And those who still want to work despite their age can look forward to a great deal of relief in 2023.
We've summarized the most important changes for retirees in 2023.
Pension: There is no additional income limit at all
Those who retire before reaching the statutory retirement age, but still want to work a little, could only do so up to a certain maximum amount.
Anyone who exceeded this limit had to accept a pension reduction.
During the corona pandemic, the government raised the so-called additional earnings limit;
it was last at 46,060 euros per year.
From January 1, 2023, it will now be completely eliminated.
This was decided by the federal cabinet at the end of August this year.
Federal Minister of Labor Hubertus Heil (SPD) justified this by saying that the government now wants to make it possible to “flexibly shape the transition from working life to retirement.”
More money in old age: Pensions are expected to increase
There is also good news when it comes to pensions.
The approximately 21 million German pensioners can probably look forward to more money.
In western Germany, pensions are expected to rise by around 3.5 percent in July and by a good 4.2 percent in eastern Germany.
This emerges from the draft of the pension insurance report 2022.
However, it is important to note that the figures are only provisional.
The specific data will not be available until spring 2023. The following table shows how much the individual pensions would increase with the increase mentioned above:
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Because of future pension taxation: relief for everyone
The third change only affects future pensioners for the time being.
Because the federal government has decided that all taxpayers can fully deduct their pension contributions from January 1, 2023.
This is to avoid double taxation.
Because anyone who retires after 2040 will have to pay 100 percent tax anyway.
According to the federal government, employees will be relieved by around 3.2 billion euros in 2023.
In 2024 it will be 1.8 billion euros.
(ph)
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