Concerns are mounting over the planned “Aktivrente” (active retirement) scheme, slated to take effect on January 1, 2026, with potential implications for the tax burden faced by retirees who continue to work.
According to a draft proposal from Federal Finance Minister Lars Klingbeil (SPD), the scheme, designed to allow retirees to earn up to €24,000 annually tax-free after reaching the statutory retirement age, may inadvertently place a significant tax burden on those who supplement their pensions through continued employment.
Fritz Güntzler, a CDU parliamentary representative specializing in finance, voiced alarm, stating that the current draft could result in up to half of the additional earnings being offset by taxes due to the so-called progressivity clause. He described this potential outcome as “absurd” and urged Minister Klingbeil to revise the draft legislation, emphasizing the need to maintain tax-free allowances where they currently exist.
Reiner Holznagel, president of the German Taxpayers’ Association, echoed these concerns, warning that the current draft could substantially increase the tax burden on working retirees. He suggested that, due to the progressivity clause, the tax liability could even quadruple in some cases. Holznagel cautioned that failing to openly communicate the details of the scheme could lead to disappointment and frustration.
A spokesperson for Minister Klingbeil, responding to inquiries, indicated that a complete draft law regarding the Aktivrente is forthcoming, declining to provide further comments until its release. The impending legislation is under scrutiny as it approaches a crucial stage of development.
