Pension tax drops significantly: some cohorts benefit enormously

  • Many are now retiring double taxation
  • Both including income and future retirement taxes are paid
  • This must be prevented – traffic light plans change in retirement
  • Will be Retirees and pensioners will soon save a lot of money? It depends

Pensions remain an outdated model: on the one hand, it no longer works mathematically, and on the other hand, pensioners are taxed twice. this Ampel now wants to change that so that retirees have more in their pocket. Also interesting: The strongest increase in pensions in decades is looming – the government decides to raise to 6.12%.

Pension tax: Why is your pension actually taxed?

The current traffic light coalition wants to prevent double taxation of pensions. The current situation is that workers first pay taxes on insurance premiums, then on pensions must. As pensions increase in 2022, even more retirees will have to pay taxes in the future.

The answer was: it should be so statutory pension fully taxed in the future to be, but the contributions during the employment period are then fully taxable near.

Since in Germany all income above a certain amount of exemption is taxed, the pension must also be taxed at least once. In the future, however, this should: The pension is paid, not before.

Pension tax: this is how much pensioners have to pay

Anyone who retired in 2021 has to Tax 81% of the pension payment according to the individual tax rate. Currently, only people who retire in 2040 should pay tax on 100% of their pension. This The transitional period is to be extended until 2060 will be.

This would slow down the annual tax increase. Currently, the assumed growth rate is 0.5% per annum.

In this aisle you want from the taxation of contributions to the pension to the taxation of the payment of the pension. Due to the extended transition period, any compensated double taxation will be. People in their forties are particularly affected today. From 2040, they will have to pay full tax on their pension, but will not be able to fully deduct their pension contributions by 2025.

What should change in retirement?

The traffic lights meanwhile recorded in writing that: avoid double taxation in the future let it be. Today, about a quarter of Germany’s 20 million retirees are affected, and this part pays taxes.

The remainder retired before the reorganization, or earned so little income that no taxes had to be paid.

For pensioners who retired in 2017, the proportion that is over-taxed during their working life is just under € 10,000. For pensioners who retired in 2020, the amount was already over € 22,000. Those who retire in 2040 have been taxed more than € 53,000 too much. So the current transition period is not workingbecome biased more than 20% of the pension is additionally taxed. According to the research of the financial mathematician Werner Siepe, it will not be over until 50 years.

What are the consequences for retirees?

The extended transition period means many retirees potential tax relief. If you were born in 1975 and had a gross income of around 3,250 euros, the total relief would be almost 12,500 euros. The top earner, earning around € 7,050 gross, can save up to € 23,500 over the course of his life. this The effects depend largely on the year.

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People born in 1980 are also doing well, with average earners receiving a tax break of around € 9,950. Top earners up to around 18,800 euros. People born in 1960 have the smallest advantage.

People born in 1990 fare similarly less well with old-age pension insurance. Individual savings have to be calculated on the basis of year of birth and income, but overall the new regulation still requires some follow-up.

What happens if I receive several pensions?

If taxable pensioners receive pension income from different sources, a separate supplement is calculated for each pension. The different pensions can be a pension, a widow or a so-called Rürup pension.

The reservation of a pension exemption means that future increases in pensions are always fully taxable, not just the taxable percentage.

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