Overview

• From 1 January 2026 retirees at the statutory age could earn up to €2,000 a month tax-free from work, while CDU figures cite roughly €36,000 a year tax-free when adding the general personal allowance, a framing the finance ministry narrows to wages only.
• The exemption would cover earned income after reaching regular retirement age; health and long-term care contributions would still be due, and unemployment and pension insurance contributions for regular pensioners would be waived.
• Caritas and the Institut der deutschen Wirtschaft put annual tax losses at about €2.8–3 billion, and unions as well as employer representatives question effectiveness and fairness, with self-employed retirees not covered.
• Separately from 1 December 2025 the disability supplement will be folded into base pensions, with the DRV recalculating as of 30 November, paying a 17‑month catch-up where higher and not reclaiming where lower, though some survivors’ pensions could fall due to income crediting.
• Financing plans include a legally fixed 48% replacement level and a projected rise in the contribution rate to about 18.8% in 2027 to support the broader pension package.