Overview

• Official figures report that about one in five people aged 65 and over has at most €1,400 net per month, with the median retiree income up roughly 9% from 2021 to 2024, trailing the 11% rise in overall incomes.
• Roughly 739,000 people received basic income support in old age at the end of 2024, up 7% from a year earlier and 31% since 2020, highlighting rising reliance on the safety net.
• Under the proposed Aktivrente starting January 1, 2026, employees who have reached the statutory retirement age could receive up to €2,000 a month in earnings tax‑free in addition to their pension, with only income above that threshold taxed.
• Combined with the projected 2026 basic allowance (€12,348 for singles and €24,696 for joint filers), reported annual tax‑free amounts could reach about €36,348 for singles and €48,696 for married couples.
• Implementation would run through employers via ELStAM without a separate application, while current drafts indicate exclusions for the self‑employed and many minijobbers and leave the treatment of health and long‑term care contributions unresolved.