Overview

• Retirees will be able to earn up to €2,000 per month tax-free on top of pensions starting January 2026 under the finalized Aktivrente rules.
• The government plans to repeal the Vorbeschäftigungsverbot in the autumn parliamentary session to allow retirees to return to former employers.
• The Deutsches Institut für Wirtschaftsforschung estimates around 230,000 pensioners—mainly higher-income earners—would directly benefit from the scheme.
• Studies by the Bundesbank and DIW predict only modest effects on labour supply since financial incentives rank low among retirees’ motivations to keep working.
• The Sozialverband VdK cautions that the proposal could widen the gap between wealthier retirees and those unable to continue working due to health or caregiving responsibilities.