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Germany Sets Jan. 2026 Start for Aktivrente With €2,000 Tax‑Free Earnings for Working Retirees

Economists label the new tax break a modest lever, urging a one‑off deferral bonus to lift labor supply more effectively.

Overview

  • Earnings under the scheme remain subject to health and long‑term care contributions, leaving about €1,793 net from €2,000 gross as outlined by the Finance Ministry.
  • Self‑employed people, freelancers and farmers are excluded despite self‑employed workers making up 29% of employed retirees, and only 32.4% of SMEs report allowing work beyond the statutory retirement age.
  • The Finance Ministry projects roughly €890 million in annual costs from 2026 to 2030, with expected uptake ranging from about 168,000 users (official) to around 230,000 (DIW).
  • Official 2024 microcensus data show 13% of 65‑ to 74‑year‑olds already work, often part‑time or marginally, with half in mini‑jobs and many logging under 20 hours a week.
  • IAB researchers say Aktivrente is unlikely to be a gamechanger and recommend a one‑time bonus for deferring pension claims as a stronger incentive than the tax exemption.