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Germany Will Count Pension Supplement as Income From Dec. 1, Risking Cuts for Millions

Recalculated notices due in mid-November will show many survivors lower benefits under income rules.

Overview

  • The Deutsche Rentenversicherung confirms the temporary exemption for the July 2024 supplement ends on December 1, 2025, when the payment is folded into monthly pensions and treated as income.
  • Around three million beneficiaries are eligible for the supplement, and many—especially widow(er) pensions—face reductions because income above the survivor allowance is offset by a 40% deduction.
  • The reclassification can push retirees over tax thresholds, increasing income tax and solidarity surcharge, with December pension payments scheduled for December 30 and revised notices expected from mid‑November.
  • From January 2026, the planned Aktivrente would allow up to €2,000 in monthly earnings tax‑free, though social, health and long‑term care contributions still apply, limiting net gains.
  • For 2026, updated social‑insurance parameters raise the annual earnings needed for one pension point to €51,944, while a political clash intensifies as the SPD defends its pension package and 18 young Union MPs warn of more than €115 billion in long‑term costs; EU officials are also weighing whether to link future budget payments to national pension reforms.