As of: January 19, 2024, 7:07 p.m
By: Simon Stock
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How much money can you earn per year without your pension being reduced?
There will be a change in the additional earnings limits for pensioners in 2024.
Hamm - If the pension is small, extra money is needed.
Pensioners in Germany have the opportunity to supplement their salaries with a part-time job.
However, some of them have to comply with a limit on additional earnings, otherwise there is a risk of their pension being reduced.
This limit has moved as of January 1, 2024.
Additional earnings limit upon retirement: How much pensioners can earn in a part-time job in 2024
Pensioners are generally allowed to earn money in addition to their pension.
However, not all pensions are the same.
When it comes to the additional earnings limit, three distinctions are important:
Old age pension
Pension due to total disability
Pension due to partial disability
Recipients of
old-age pensions
are allowed to earn as much money as they want and can.
There is no additional income limit for them.
Such a limit existed for a long time for early retirees (“early retirement pension”), but it was lifted with a change in the law on January 1, 2023.
Since then, there are no longer any limits on old-age pensions.
So there is no threat of pension cuts - no matter how well paid the part-time job is.
Many people would like to retire sooner.
But pensioners have to be careful in 2024: the deductions will increase.
What is disability pension?
If a person is no longer able to work for health reasons, the pension is intended to replace their income due to total disability.
If the person can still work a few hours a day, the partial disability pension supplements their income.
Additional earnings limit for pension 2024: old-age pension without limit, but not disability pension
This is different in the area of disability pensions.
There were and continue to be additional earnings limits here.
However, they were increased significantly on January 1, 2024.
People with reduced earning capacity can now earn more without having to worry about their pension being reduced.
This is one of many changes to pensions in 2024.
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According to the German Pension Insurance, if you receive a
pension due to full disability
in 2024, an additional annual income of 18,558.75 euros (in 2023 it was 17,823.75 euros) is possible without any deductions.
This corresponds to three-eighths of 14 times the monthly reference value.
Since January 2024, when drawing a
pension due to partial disability,
there has been an annual additional earnings limit of at least 37,117.50 euros (last year it was 35,647.50 euros).
This corresponds to six-eighths of 14 times the monthly reference value.
If a higher income was achieved in the past 15 years before the disability began, a “higher individual dynamic limit” applies, according to the German Pension Insurance, which is sounding the alarm about planned cuts in pension subsidies.
If the pensioner earns more, 40 percent of the amount exceeding the limit is deducted from the disability pension.
The table shows the additional income limits for pensioners in 2024:
Type of pension |
Additional earnings limit (Euros per year) |
---|---|
Old age pension |
no |
Pension due to total disability |
18,558.75 |
Pension due to partial disability |
at least 37,117.50 |
Incidentally, the additional income limits are redefined every year.
They are linked to the development of the monthly reference figure in social insurance.
Income limits also apply to recipients of survivors' pensions.
The allowance for additional earnings for widows or widowers is 950.93 euros in western Germany and 937.73 euros in the east until June 2024.
However, the calculation of additional earnings is different than for old-age and disability pensions.
Recipients of orphan's pension do not have to comply with any additional earnings limits.
When it comes to pensions, new figures don't make Germany look good.
A higher retirement age should help.
A generation has to think about it.