Overview
- From December 1, 2025, the previously separate pension top‑up for former disability and follow‑on pensions will be merged into the monthly payment and fully counted as income for survivor‑benefit means tests, which can reduce widow and widower pensions under the 40% over‑threshold rule (€1,076.86 net per month currently).
- The Active Pension will allow employment income of up to €2,000 per month tax‑free for retirees at or beyond the standard pension age, but contributions to statutory health and long‑term care insurance still apply, leaving about €1,793 net on a €2,000 example paycheck.
- Government estimates suggest around €890 million a year in foregone tax revenue from 2026 to 2030, take‑up is uncertain with projections ranging from 168,000 to about 230,000 users, and critics note that self‑employed, freelancers and farmers are expected to be excluded.
- Retirees who move abroad become limited tax residents in Germany and lose the basic allowance unless they apply for unlimited tax liability, which typically requires that at least 90% of their income is German‑sourced and is filed via ELSTER or a paper form.
- The pension is not paid automatically at retirement age, and the German Pension Insurance recommends filing the claim three months in advance—six months to be safe—to avoid gaps and to allow time to resolve missing records.