2000 Euro tax-free income in addition to pension: Cabinet decides on Active Pension - Germany's 'Aktivrente' Gains Key Backing, Promising Economic Boost and Social Inclusion
Germany's active retirement system, 'Aktivrente', gains support from key organizations. They lobby for tax incentives, inclusion, and representation of elderly and disabled people. Meanwhile, certain groups like self-employed individuals and civil servants remain excluded.
Several prominent organizations, such as Sozialverband VdK Deutschland and Sozialverband Deutschland (SoVD), advocate for the active pension scheme. They aim to promote the interests of elderly and disabled people in social policy and pension reforms.
The scheme allows employed individuals to earn an additional 2,000 euros (24,000 euros annually) tax-free from non-self-employed work post-retirement. This exemption aims to bolster social security funds, tackle labor shortages, and enhance Germany's overall economic standing.
However, self-employed individuals, farmers, and civil servants are not eligible for this benefit. Despite this, the federal government anticipates around 168,000 people per year expressing interest in the active pension, with an estimated annual revenue loss of 890 million euros due to tax incentives.
The active pension initiative, backed by Finance Minister Lars Klingbeil (SPD), seeks to stimulate economic growth and retain experienced workers. Despite the expected revenue loss, the government views it as an investment in Germany's future workforce and social security.
