The “active pension” and its consequences
In future, pensioners will be able to earn up to 2,000 euros a month via the so-called “active pension.” This plan, by the German government, will offer tax-free income, even if the retiree already receives an old-age pension. Researchers have now taken a closer look at the consequences of this policy.
Until now, gainful employment beyond a “minijob” was not very attractive for pensioners. The aim of the active pension is to promote employment in old age and to make the transition between employment and retirement more flexible. The study shows that 234,000 taxpayers could claim an active pension in the future. However, those with a high total income, whose wage income is subject to high marginal tax rates and who have other income, e.g., from assets, will benefit in particular. For this reason, the researchers believe that inequality in society could increase further. Not all older people are able to continue working – many are hindered by care responsibilities or their own health impairments.
Further information
Bach, S., Buslei, H., Geyer, J., Pieper, J.: Aktivrente entlastet vor allem besserverdienende Rentner*innen – mit unsicheren Beschäftigungseffekten. In: DIW Wochenbericht 25/2025, S. 395-402. (available in German only)
Süddeutsche Zeitung (17.06.2025): Kann die „Aktivrente“ halten, was sie verspricht? (available in German only)
Rheinische Post (18.06.2025): „Aktivrente entlastet vor allem Besserverdienende“ (available in German only)