Germany's Incoming 'Active Pension' Explained
An incentive designed to keep pensioners in the workforce for longer will allow people over the age of 67 to earn up to €2,000 tax-free each month.
The German government has agreed on its 'active pension' (Aktivrente) plan, set to start from January 1st, 2026. This plan allows anyone of pension age who continues working to receive up to €2,000 in monthly income tax-free, on top of their monthly pension payment.
The idea is that anyone of pension age who decides to carry on working can receive up to €2,000 in monthly income tax free, on top of their monthly pension payment.
The government intends to incentivise pensioners to remain longer in employment, thereby reducing the country’s shortage of skilled workers.
Author's summary: Germany introduces 'active pension' to keep older workers employed.
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