Overview
- The government’s Aktivrente proposal would let employed pensioners aged 67 and over earn up to €2,000 per month tax‑free from 2026, excluding the self‑employed and freelancers.
- Despite the tax exemption, additional earnings would remain subject to pension, health and long‑term care insurance contributions, reducing the net benefit.
- The bill must still clear the Bundestag and Bundesrat, with the finance ministry estimating relief of up to €890 million annually and potential tax revenue losses exceeding €1 billion by 2027.
- Labour market data suggest limited targeted roles for retirees, with just 1,958 job ads explicitly for pensioners in the first three quarters of 2025 and many current older workers in tax‑free mini‑jobs.
- Separate from the Aktivrente, Germany’s shift to deferred pension taxation continues, with full taxation now scheduled for 2058 and contributions fully deductible since 2023, yet a government‑commissioned study and BFH rulings indicate residual double taxation risks for certain cohorts—especially higher earners and the self‑employed.