Additional earnings to pension pension and income: how much are you allowed to earn on top of your pension as a pensioner:in?

Jenny Gebel - editor at Comfortplan (Finanzen Group)

Pensioners who have reached the age at which they are entitled to a statutory old-age pension may earn an unlimited amount. There is no reduction in the statutory pension for them. Differently it looks with Fruhrentner:innen from.

Additional earnings in the case of reduced earning capacity pension What you should pay attention to?

People who receive a pension for reduced earning capacity can also take up a job and earn some extra money within the framework of maximum limits. However, the pension insurance then expects an active notification.

Earnings limit exceeded – and now what??

If your annual earnings exceed the limit that applies to you, a portion will be offset against your statutory pension.

What applies to survivors’ pensions?

For widow’s and widower’s pensions there are different allowances and limits, which are based on the pension value. The calculation is very complex.

The supplementary earnings cap

This value marks a maximum limit for the additional earnings to the pension. What this means exactly, you can read here ..

Even as a pensioner:in you can still pursue employment. Some people depend on it in order to Supplementing their household budget. Others simply still want to Be active and participate in working life. There are many reasons to work during your retirement years.

When working as a pensioner:in, there are a few things to keep in mind so that your pension is not reduced. An important key figure that helps to determine the additional earnings to the pension is the Normal retirement age. If you have taken early retirement and have additional income, you are subject to the Supplementary income limit.

Here you can find out which earnings limits have to be observed for a statutory pension or a pension for reduced earning capacity. We will also be happy to advise you on your Retirement planning and a suitable pension insurance.

Pension and additional job: How much can I earn in addition?

If you receive a pension and have additional income from an activity, whether employed or self-employed, you should find out whether this affects the amount of your pension. This does not apply to all, but to many types of pensions.

This primarily affects recipients of an early retirement pension – as well as people who receive a pension for reduced earning capacity. For survivors’ pensions such as widowers’ or widowers’ pensions, too, the Income has an influence on the pension amount.

If you receive an orphan’s pension or are already of pensionable age, you do not have to worry about a reduction in your payment due to additional earnings.

In this guide, we will explain how much you earn free of charge to the pension in addition can with additional information, current figures and examples.

Statutory pension: What you should bear in mind about additional income

Let’s start with the simplest case: you are in retirement, Draw your retirement pension and have also reached the normal retirement age.

Then you are allowed to earn as much extra on top of your pension as you wish. Your pension will not be reduced as a result. And you do not have to report the additional earnings to the insurance company. From this point of view, you can remain completely relaxed.

Remember that even as a pensioner:in your pay tax on income must. Again, there are other rules and allowances for this. Read more about this in our article on pension taxation . Authorities that pay social benefits may also be interested in additional earnings and recalculate payments – for example, the housing benefit office. It is best to seek the advice of a professional in this regard.

Additional earnings for early retirees

If you have retired earlier, i.e. before the regular age limit, you can also earn some extra money. However, a few other rules apply to you:

1) You must report to the German Pension Insurance (DRV) your employment report in writing.

2) Depending on how high your earnings are, there may be a Reduction of your pension benefits come. (more on this in the next chapter)

If this additional income ceases to exist or decreases significantly, you will receive the full amount of your pension again. And at the latest, when you have reached the regular retirement age, you may earn as much as you want. And without being offset against your pension (see section one).

  • Which earnings limit applies to you? The normal rules on additional earnings for an early retirement pension provide as follows: If you earn more than 6.300 euros per year gross, you must expect that your pension will be reduced.

Increase of the earnings limit due to Corona

In many areas, there have been changes due to the Corona crisis to Personnel shortages. Therefore, the federal cabinet temporarily raised the earnings limit for early retirees for the years 2020 to 2022: from previously 6.300 euros to 46.060 Euro gross per year.

This should make it easier for companies and early retirees to take up employment in order to support companies with manpower.

2023 the earnings limit is expected to be reduced again.

We have summarized the most important points about the earnings limits for you here.

Overview: You should be aware of these rules on additional earnings for pension purposes

When does the additional earnings occur?Annual earnings limit (2022)Report additional earnings to the DRV?
Before the regular retirement age Up to 46.060 euros without offsetting

In the "Knowledge" section you will find Info, Tips and Advice from various areas of everyday life, in which protection, security and finances also play a role.

Additional earnings in the case of reduced earning capacity pension

People who receive a reduced earning capacity pension are also allowed to earn some extra money without having to reckon with deductions. However, in these cases the pension insurance wants to know exactly about it. Finally, you receive the pension because you are no longer able to work at all due to illness or disability (three to a maximum of six hours for partial pension and less than three hours for full reduction in earning capacity). If you have a half-day job, there is a conflict with the reduced earning capacity pension.

How much additional income you can earn if you have a full reduction in earning capacity?

For a full pension due to reduced earning capacity, the same rules apply as for an early pension:

  • Per year you may maximum of 6.300 Euro earn additional income without having your pension reduced.
  • Everything that exceeds this earnings limit will be taxed at 40 percent to be credited against the pension.
  • Note: The special regulations in the Corona period do not apply to the reduced earning capacity pension.

If you are receiving a reduced earning capacity pension, you should have your pension insurance inform them immediately. The insurers are interested in your work anyway. You check whether the income and the job are still within the pension conditions. You are entitled to a certain residual benefit.

What additional earnings are permitted in the event of partial reduction in earning capacity??

If you are partially incapacitated for work due to illness or disability and receive a pension, different earnings limits apply again. Your personal additional earnings limit the pension insurance calculates each year. An important factor is your highest annual income subject to contributions from the last 15 years.

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