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Coalition Rejects Statutory Age Hike, Advances Tax-Free ‘Aktivrente’ Incentive

With the legal retirement age frozen at 67, the coalition plans to launch a tax-exempt bonus for those who choose to remain in the workforce.

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Overview

  • The governing Union-SPD coalition has confirmed it will not raise the statutory retirement age beyond 67 and will instead roll out a voluntary Aktivrente scheme.
  • Under the Aktivrente proposals, retirees who continue working past 67 can earn up to €2,000 per month tax-free as an incentive to extend their careers.
  • Key SPD figures including Dietmar Woidke and Lars Klingbeil and social welfare associations VdK and SoVD have reiterated their opposition to any mandatory age increase, demanding full voluntariness.
  • An Insa poll shows around 73 percent of Germans support the Aktivrente, and nearly half say they would continue working into traditional retirement years under the incentive.
  • Economic experts such as Bernd Raffelhüschen and employer representatives warn that demographic shifts and rising life expectancy necessitate longer work lives, with some advocating a future hike toward 70.