Germany's Incoming 'Active Pension' Plan
An incentive designed to keep pensioners in the workforce for longer will allow people over the age of 67 to earn up to €2,000 tax-free each month.
The German government has come to an agreement on its ‘active pension’ (Aktivrente) plan, which is set to start from the beginning of next year.
- The plan allows anyone of pension age who decides to carry on working to receive up to €2,000 in monthly income tax-free, on top of their monthly pension payment.
- The benefit is set to start from January 1st, 2026.
The project is intended to incentivise pensioners to remain longer in employment, thereby reducing the country’s shortage of skilled workers.
Author's summary: Germany introduces 'active pension' to keep older workers employed.