German Retirees Who Continue Working Set to Earn €2,000 a Month Tax-free

THE GUARDIAN: Active pension scheme expected to start in January is part of chancellor’s ‘autumn of reforms’ to tackle economic stagnation

Germans who continue in the labour market beyond retirement age will be able to earn up to €2,000 (£1,750) a month tax-free on top of their pension under a scheme aimed at boosting economic growth and labour force participation rates.

The “Aktivrente”, or active pension scheme, due to come into force in January, was promised on the campaign trail by the chancellor, Friedrich Merz, before he came into office five months ago.

The government, a coalition of Merz’s conservative Christian Democrats (CDU) and junior partners the Social Democrats (SPD), hopes the plan will incentivise post-retirement working.

A draft law is expected to be approved by the cabinet on Wednesday – after Merz won over his Social Democrat sceptics earlier this month – then debated in the Bundestag. » | Kate Connolly in Berlin | Wednesday, October 15, 2025

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It is precisely because Starmer has an authoritarian streak in him that I call him our Führer! He must be the most-hated prime minister in my lifetime. – © Mark Alexander

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Old-age Poverty in Germany | DW Documentary

Jun 24, 2024 | Gisela, Inga and Ulrich are pensioners – and poor. They’re constantly short on cash, even though they worked as hard as they could.

One out of five pensioners in Germany is considered to be at risk of poverty. Among women, the figure is even higher. The reasons vary widely. Gisela had decided to take care of her elderly father – meaning she couldn’t make enough payments into the pension fund. She’s feeling the consequences now, as she must count every penny.

Inga is in a similar situation. She had an accident that stopped her from working full-time. Now she’s trying to save money wherever possible – especially on groceries.

Ulrich was self-employed and earned well. But then his business went bust, and his savings are long gone.

Three different life stories, one problem: With retirement came poverty.

A film by Tessa Clara Walther and Melina Grundmann.