Pension: What the elimination of the additional earnings limit means
Created: 12/23/2022, 1:14 p.m
By: Caroline Schäfer
Early retirees can earn unlimited additional income from 2023.
You don't have to worry about future deductions from your pension.
Frankfurt – A lot will change for pensioners from next year.
Not only a pension increase is expected in Germany.
Anyone who retires earlier in 2023 can earn as much as they like with a part-time job – without reducing their pension,
reports
fr.de.
The Bundestag decided to abolish the additional earnings limit for early retirement pensions.
"At the end of many reforms, I hope that we will come closer and closer to the goal that people can decide for themselves when they can retire,"
Deutschlandfunk
quoted Union MP Maximilian Mörseburg (CDU).
But what does that mean in concrete terms?
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Pension 2023: Pensioners can earn as much as they like without deductions
So far, everyone who took early retirement and thus left the labor market prematurely had to accept deductions from their pension.
The additional income limit was 6300 euros per year.
The pension could only be supplemented by a mini-job.
In view of the corona pandemic, the additional earnings limit for early retirement pensions for 2022 was raised to 46,060 euros.
With the passing of the draft law by the traffic light government, this is now over.
Anyone who wants can earn unlimited additional income from January 1, 2023 and thus improve their monthly pension.
Anyone who draws a disability pension can also look forward to it.
Depending on the individual case, the additional income limit will rise to up to EUR 34,500 in the coming year.
In any case, pension recipients must report the start of work to their pension insurance company as well as the amount of earnings.
Additional earnings limit for early retirees | |
|---|---|
Up to and including 2022 | 6300 euros per year |
From 2023 | unlimited |
The aim of eliminating the possibility of earning additional income is to keep employees longer in working life and thus counteract the shortage of skilled workers in Germany.
“Everywhere we go, in our constituencies, in our districts, there is a shortage of workers, qualified workers.
And that's why we want to clear the way to increase the labor potential," stressed Axel Knoerig, chairman of the workers' group in the Union faction in the Bundestag, according to
Deutschlandfunk
.
Change for 2023: Working in retirement also improves the pension
This means that not only an additional income can be achieved in addition to the pension.
Any employment that is subject to social security contributions also raises your own pension entitlements.
Anyone who earns 2000 euros gross as an early retiree and thus achieves 0.6 pension points per year improves their own pension by around 100 euros in four years, calculated
Deutschlandfunk
.
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From January 1, 2023, the additional earnings limit for early retirees will no longer apply.
This means that the pension can be supplemented without deductions.
© Hanno Bode/imago
It is already clear that retirement at 63 is popular.
More and more employees are retiring early and accepting deductions from their pensions.
"Once retirement has taken place, only a few return to work," said Elke Loichinger, research group leader at the Federal Institute for Population Research.
(cheese)
