Overview

• From 1 January 2026, retirees at or above the statutory age could earn up to €2,000 per month from work tax‑free, with health and long‑term care contributions still due and no unemployment or pension insurance contributions planned on that income.
• Confusion persists over the scope: CDU voices cite roughly €36,000 per year tax‑free when adding the general allowance, and some in the Union float €3,000 per month, while the finance ministry is preparing the formal draft.
• Social groups and economists attack the plan as regressive and costly, with Caritas calling it a “very expensive tax gift” and the IW estimating annual revenue losses of about €2.8–3.0 billion and uncertain labour‑market effects.
• Separately, the DRV will fold the 2024 disability supplement into regular pensions from December 2025, re‑determining benefits on 30 November with 17 months of backpay if higher and possible reductions to survivors’ pensions due to income counting.
• Official projections point to pension increases of about 3.37% in 2026 and 4.18% in 2027, with further moderate rises through 2030, while the legally guaranteed pension level of at least 48% remains in place.