Germany is poised to introduce a new initiative allowing citizens to continue working past the standard retirement age and earn tax-free income. According to reports citing sources within the governing coalition, the “Active Pension” or “Aktivrente”, is currently slated to take effect on January 1, 2026.
The program aims to provide older workers with the opportunity to remain in employment beyond the typical retirement age, supplementing their pensions with up to 2,000 euros per month earned tax-free.
Leaders from the CDU, CSU and SPD parties reached an agreement on a broader pension package Friday, which includes the “Aktivrente”. This package is expected to be formally approved by the legislature later this year, paving the way for the initiative’s implementation. The move is designed to address demographic shifts and encourage continued workforce participation amongst experienced employees.
