Most employees hope that their pension will finally give them a well-deserved retirement. After decades of hard work, during which your own wishes had to be postponed again and again, the time has finally come to make up for all of this. At least that’s the theory, but the sad reality of retirement often looks different. Instead of realizing dreams, work continues. There is not enough money in old age, you have to earn something in addition to your pension. However, there are some rules and guidelines to be observed. We show, how much you can earn on top of your pension, from when the earnings will affect your pension and what will change this year …
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Why earn something extra in retirement?
Everyone initially associates one thought with retirement: Finally stopped working. That doesn’t mean that the average worker can’t wait to quit their job and retire, but it certainly is mostly mentioned advantage the pension. And that’s more than earned. After all, up to that point you usually worked for 40 years.
However, only some of the retirees can rest after their last working day. Studies show that well over half of employees retire early, but for many people continue to work in old age. Work depending on the state between 11 and 20 percent of 65 to 70 year olds more – every fifth pensioner in Baden-Württemberg, for example, earns something extra.
However, a differentiated consideration is advisable for the reasons. On the one hand, this development should be great viewed from a socially critical point of view because many retirees simply have no other choice and are forced to supplement their small pension. With good reason, poverty in old age has been the subject of long and broad discussions, and young professionals and younger generations are advised, with a view to the future, to take care of private old-age provision.
But there is also a completely different reason: Not everyone wants to start with Retirement age stop working. Retirement is a big change and not everyone wants to tackle it as early as possible. Anyone who still feels able to do so in terms of health and has the necessary motivation to continue working despite the appropriate age can do so on their own initiative.
Additional earnings for a pension: you need to know that
Regardless of the reasons for which you are still earning money in addition to your pension, you should find out exactly in advance. Depending on your individual situation, such additional earnings can affect your pension. The emphasis here is on can. We have created an overview that shows you what to look out for if you earn something in addition to your pension.
Additional pension earnings: After reaching the standard retirement age
After you have exceeded the so-called standard retirement age, you are allowed to do so earn an unlimited amount of money on top of your pension. In this case, you have reached the statutory retirement age – depending on the year of birth, you will reach the standard retirement age at the age of 67, or a little earlier for older age groups.
If you decide to continue working after reaching the regular retirement age, this will not affect your pension payments. If the monthly earnings are above the 450 euro limit, you are no longer obliged to pay into the pension insurance to pay in – this can still be worthwhile. Your employer, on the other hand, must in any case continue to provide the share that would arise in a normal, insurable employment relationship.
However, you will still be able to do so even after you have reached the regular retirement age subject to social insurance and have to pay contributions to health and long-term care insurance.
Additional pension earnings: Before reaching the standard retirement age
If you take early retirement before reaching the regular retirement age, you need to be more careful with your additional earnings. According to the law: More than 450 euros per month do not affect your pension. This means: If you exceed the limit for additional earnings, your pension will be reduced and you may suddenly only receive half or even less, as only a partial pension will be paid out instead of a full pension.
You are currently allowed to use this limit exceed twice a year and earn up to 900 euros in each of these two months without worrying that this will affect your pension. So if your employer grants you vacation pay, this is not a problem.
If you receive a partial pension, the limits for additional earnings are higher and depend on your earnings before the pension and whether you live in the old or new federal states. For example, with a two-thirds partial pension and a previous salary of EUR 3,091.92 (example of the German pension insurance), you can earn more than EUR 1,000.
If you exceed the limit for a partial pension, you will automatically receive the next lower partial pensionwithin whose limits you keep yourself. How exactly this affects your pension payments will vary from case to case. But remember: In order to receive a higher partial or even full pension again, you have to receive a corresponding one within three months file applicationbecause the promotion is not automatic.
Additional earnings for a pension: If you receive a disability pension
If you receive a disability or disability pension, the first thing that applies here is that you can get up to without problems Earn 450 euros a month be able. In addition, it will be difficult with general guidelines. In this case, the additional earnings limits are calculated individually.
Therefore, before you start a job, you should be sure to inform. In individual cases, the pension payment can even be omitted entirely if you earn too much in addition to a disability pension.
Additional earnings: if you receive a survivor’s pension
Even if you receive a widow’s or widower’s pension, additional earnings can lead to this being reduced and no longer being paid out in full. However, the tax exemptions are higher than for early retirement. In the new federal states, for example, survivors have up to 756.62 euros to earn. In the old federal states there are 803.88 euros.
If you have a child who is entitled to an orphan’s pension, the tax exemption is increased by 170.52 euros in the old and 160.50 euros in the new federal states. If your income exceeds this allowance, 40 percent of the excess salary will be offset against your pension.
For example, if your net income exceeds your tax exemption by 300 euros, the Survivor’s pension reduced by 120 euros (40 percent of 300 euros).
Changes due to FlexiRente in 2017
Through the FlexiRente This year, some regulations for additional earnings before reaching the standard retirement age will change. The old requirements of a maximum of 450 euros per month will be replaced and from July 1, 2017, the following applies 6300 euros per year can be earned in addition to the pension without affecting the pension payments. If you exceed this limit, 40 percent of the additional earnings will be offset against your pension.
Additional earnings for a pension: let us advise you!
If you have extra earnings on top of your retirement it can have a big impact on your monthly payments. Therefore, before you start a job, you should be sure to inform to let. If your earnings stay below the specified limits, you are generally on the safe side, but it can’t hurt in this case either.
If you are planning a higher income, it is all the more important that you seek advice at an early stage and calculate how the job will affect yours financial situation affects. Otherwise, you might go to work, but a huge reduction in your pension will end up leaving you with less money than you were before.
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