Overview

• The Aktivrente bill has advanced in parliament with lawmakers endorsing a €12,000 annual tax exemption for retirees who return to work
• Legislation would lift the longstanding prohibition on retirees continuing in the same firm after pension eligibility ends
• Only those at the statutory retirement age qualify for the new scheme, leaving early retirees ineligible for tax-free income
• Recent Bundesbank and DIW reports characterize the program as having limited potential to significantly cut pensioner poverty or fill labor gaps
• A YouGov/Postbank poll finds that over half of workers would extend their careers part-time until 70, signaling public openness to the reform