The planned Active Pension of the government aims to keep older workers in the labor market longer to counteract the skills shortage and relieve the pension fund. It offers tax advantages and allows retirees to earn up to 2,000 euros per month tax-free.
Background and Goals of the Active Pension
The government wants to encourage older workers to work longer with the Active Pension. This is intended to counteract the skills shortage and relieve the pension fund, as pension payments will start later and contributions will continue to be paid. Retirees can earn up to 2,000 euros per month tax-free, which is meant as an incentive to stay active in the workforce for a longer time.
Impact on Pension Policy
The Active Pension is part of a comprehensive pension reform and differs from the Flexible Pension due to its tax advantages and lack of contribution obligation to social insurance. There are discussions that the deductions for early pensions are too low and could make early access to pensions more attractive, which could mean financial burdens for the pension fund.
Impact on Savers and Investors
The Active Pension offers retirees new financial opportunities, especially through the tax-free supplements. However, the benefits depend heavily on the individual’s starting position. Self-employed individuals who are not part of the statutory pension insurance may consider alternative investment options like private ETF savings, as these often promise better returns, but do not offer guarantees.
Criticism and Challenges
The effectiveness of the Active Pension heavily depends on the participation rate of retirees. If not enough retirees participate, the measure could cost the state more than it brings in. The long-term economic effects of the Active Pension are still unclear. While it could relieve the pension fund in the short term, it could lead to higher costs in the long term if retirees do not work longer in sufficient numbers.
Overall, the Active Pension offers both opportunities and challenges for pension policy and the financial planning of retirees. Its successful implementation depends on the active participation of the target group.