The proposal for a new “active retirement” scheme has been defended by Carsten Linnemann, General Secretary of the Christian Democratic Union (CDU), amidst criticism from economists and opposition parties.
Speaking to the “Rheinische Post” Mr. Linnemann described the draft legislation as “an important first step”. He emphasized that the initiative aims to incentivize individuals who have reached the statutory retirement age to continue utilizing their experience, knowledge and willingness to work.
“We can contribute to combating the shortage of skilled workers with this measure” Mr. Linnemann stated, adding that the initiative is expected to foster a cultural shift where performance is recognized and valued. He characterized the active retirement scheme as a “significant component” in achieving this goal.
The federal government’s plan involves allowing individuals working beyond the standard retirement age to earn up to €2,000 per month tax-free. This aims to encourage continued participation in the workforce and provide financial incentives for older individuals to remain engaged in professional activities.
