Politicians are increasingly setting the course to motivate seniors to continue working - even if they have already reached retirement age.
An overview of the current regulations.
Munich – More and more seniors from the baby boomer generation are retiring.
The process creates a shortage of skilled workers on the job market and puts a strain on pension funds.
Politicians are therefore setting some course to motivate seniors to continue working - even if they have already reached retirement age.
An overview of the current regulations:
Additional income limits in retirement: This will apply from 2023
So far, among other things, early retirees had to observe the so-called additional earnings limit when working.
This limit would have been EUR 6,300 per year on January 1, 2023 – but the government removed it completely at the beginning of the year.
Previously, the additional earnings limit had been around 46,000 euros since 2020 as part of a temporary special corona regulation.
Early retirees can now earn an unlimited amount through employment without jeopardizing their pension payments.
Anyone who has already exceeded the regular retirement age is not affected by the additional earnings limit anyway.
Only those who receive a disability pension must continue to observe this - here the additional income limit of 6300 euros per year has been increased to up to 34,500 euros depending on the individual case.
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According to a recent study, most people in Germany want to retire sooner rather than later.
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© Jan Woitas/dpa
Pension and work: Tax return is mandatory
Important for all working pensioners: Irrespective of the additional earnings limit, the additional earnings are taxable if the basic tax allowance is exceeded together with the pension.
For the tax year 2023, the basic allowance is 10,908 euros for single people.
In any case, filing a tax return is mandatory.
In it, pensioners with a part-time job could also claim travel expenses or costs for work clothes and work equipment as income-related expenses, advises expert Daniela Karbe-Gessler from the Taxpayers' Association.
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Delaying retirement is worth it
And what about the people who are delaying retirement and just keep working?
There is even a bonus for them: if you do not claim your pension despite reaching the age limit, you will receive a surcharge of 0.5 percent for each month that you continue to work.
For example, if you have a retirement age of 67 and continue to work until the age of 68, you can increase your pension entitlement by six percent.
This supplement then remains in place until the end of life.
Study: People want to retire earlier – but don't believe in it
However, most people probably want to retire sooner rather than later.
According to a recent study by the personnel service provider Randstad, 41 percent of Germans would like to retire between the ages of 60 and 64, 33 percent even before the age of 60 – and only ten percent between the ages of 65 and 69.
However, according to the survey, more than half of those surveyed assume that they will not be able to retire until they are between 65 and 69 years of age, contrary to what they would like.
In most cases, financial reasons are decisive - at least that's what 77 percent of those surveyed said.
After all, more than one in four would like to continue working because work occupies an important place in personal life.
"The abolition of the additional earnings limit for early retirement pensions and disability pensions as of January 1, 2023 shows the complexity of the issue," explains Carlotta Köster-Brons, Head of Capital Office & National Coordinator CSR at Randstad Germany.
“It is basically good that work is worthwhile for early retirees and that they remain productive.
But it would be even better if more people than before could remain fit and healthy until they reach regular retirement age and thus be able to stay in their actual professional field.”
List of rubrics: © Jan Woitas/dpa
