From 2023, the additional earnings limit for pensioners will no longer apply. In practice, this creates the space for a new strategy in planning for retirement.
Munich – Working and receiving a pension at the same time, without this being reduced because of the additional income: Many employees at the age of 63 have been able to do this for two years thanks to the special Corona rules. But from next year even more generous regulations will apply – permanently. Because the additional earnings limit for early retirement pensions is no longer applicable. the tz explains the details.
With the abolition, the federal government wants to early retirement make the transition from working to retirement more flexible. In practice, this creates the space for a new strategy: those who claim their old-age pension early can in many cases plan with double income in the future: pension plus income from work.
Retired earlier: What has been the case so far?
Currently, the pension law still says: early retirees who earn more than 6,300 euros gross in a calendar year must with a reduction in their pension calculate. Because of Corona, this limit was increased to 46,060 euros. This special agreement was supposed to expire at the end of the year. But contrary to what was initially planned, the additional earnings limit for early retirees is now even completely eliminated. However, the requirements continue to apply: 35 years of contributions (including credit periods), minimum age 63 years.
How can you adjust your retirement planning now?
If health and employer play along, you can count on double income for a few years. This can be useful, for example, to pay off the last debts on home ownership or if you want to fulfill your dream of a mobile home or a trip.
Is the pension entitlement increasing?
Since the employment is still subject to pension insurance, you earn more pension points. With a gross salary of 2,000 euros, that’s a good 0.6 earnings points per year. In four years, this would add up to a monthly pension increase of around 100 euros.
What is to be considered for tax purposes?
By combining pension and income from work additional taxes may be incurred, because most of the pension is taxable. Also important: Wage tax and social security contributions are still deducted from wages, and contributions to health and nursing care insurance are deducted from the pension. Pension insurance does not withhold taxes. You have to submit a tax return for this. Due to the additionally drawn pension, an additional tax payment is due!
Calculation example:
Bernd K. earns 3000 euros gross per month, his monthly pension is 1500 euros (further information: additional health insurance contribution 1.3 percent, long-term care insurance with child, no church tax). Bernd K. is left with a net salary of 2,025.17 euros and a pension of 1,335 euros after deducting health and nursing care insurance. If you take that as a basis, he has to reckon with an additional tax payment of 2000 euros. He would have to set aside around 165 euros a month for this.
What do you have to do?
Simply apply for the pension, you don’t need your employer’s permission. Should the employer not benefit from the pension experienced, you have the option of applying for a partial pension (e.g. 90 percent).