The Federal Ministry of Labor wants to permanently increase the additional income limits for pensioners from 2023. According to the current status, this means that everyone can earn an additional 46,060 euros without their pension being reduced. What you have to pay attention to.

Anyone who receives a pension but has not yet reached the statutory retirement age – i.e. takes early retirement – was previously allowed to earn a maximum of 6,300 euros gross per year. If the limits were exceeded, the pension would be reduced.

Because employers lacked skilled workers, the federal government extended the additional income limits to 46,060 euros gross per year in the “Corona years” between 2020 and 2022. “This should create a greater incentive for continued employment alongside retirement,” says pension advisor Andreas Islinger from Ecovis. However, the generous regulation was limited to the end of 2022.

According to the draft bill, the Federal Ministry of Labor (BMAS) now wants to permanently raise the additional earnings limit to 14 times the monthly reference figure.

Sounds complicated, but it’s very simple: The monthly reference amount in 2022 is 3290 euros. It is based on the average monthly earnings of all pensioners. If you multiply this amount by 14, you get an additional income of 46,060 euros. That would be a good 3838 euros per month. If the reference figure mentioned increases in the coming years, the additional income limit will also increase.

With the planned reform, early retirement pensioners can also earn significantly more from 2023 without the German pension insurance reducing their retirement benefits.

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“A higher additional income limit makes it even more attractive to retire while continuing to work,” explains Ecovis pension advisor Islinger. It also helps with the skills shortage. Many companies are happy if they can continue to employ older workers without fearing financial disadvantages.

What is also new in the draft law is that higher earnings should now be possible in addition to the pension even when drawing a pension for reduced earning capacity (EM pension).

The federal government introduced the “retirement at 63” in 2014. Since then, almost two million insured have decided to retire earlier.

However, this is currently no longer possible at the age of 63. Because the regular retirement age will rise to 67 in the future, early retirees will also have to work longer. For those born in 1958, the entry age is 64 years.

Only employees who have paid contributions to the pension fund for 45 years can take early retirement without deductions. Those who only fulfill a shorter period of time have to accept pension deductions. However, they can be offset with extra payments into the pension fund. In order to find out the amounts required for this, those interested must contact the German pension insurance. The amounts can amount to several tens of thousands of euros, they then increase the pension payment for life.

Another advantage: the extra contributions reduce income tax.

The FOCUS Online Guide answers all important questions about pensions on 135 pages. Plus 65 pages of forms.