Additional income limit has been increased
The term flexi-retirement summarizes different models that were introduced as part of the 2017 Flexi-Retirement Act. Among other things, the limit for additional earnings has changed, as reported by t-online. Before the law was introduced, people who retired before reaching the statutory retirement age were only allowed to earn an extra 450 euros a month and 900 euros twice a year. Since July 1, 2017, the maximum limit has been EUR 6,300 per year and EUR 525 per month. Due to the Corona crisis, the federal government has again raised the additional income limit to 46,060 euros per year. The traffic light coalition has already indicated further modifications to the flexible pension. Politicians from the Greens and the SPD confirmed to t-online that the traffic light coalition would like to leave the additional earnings limit permanently at this level. Further details on the implementation of this project were not given.
Partial pension allows for individual adjustment options
In addition to the increased earnings limit, the flexible pension law also enables a greater individualisation of the pension. The additional earnings limit then results from the determination of an individual partial pension. This makes sense above all if it is clear from the start that the regular additional income limit will be exceeded. The reported partial pension must correspond to at least ten percent of the full pension that one would receive under normal circumstances. The Deutsche Rentenversicherung provides a flexible pension calculator on its website. Interested parties can use this to calculate how high the additional income would have to be in order to receive a certain partial pension. The rules of the conventional additional income limit apply analogously. This means that even with a partial pension, the income that exceeds the limit is deducted from the pension. The partial pension can be adjusted at any time for the future.
There are additional pension points for a longer period of gainful employment
People who want to retire before reaching the statutory retirement age sometimes have to accept high deductions. 0.3 pension points are deducted for each month. There is also an option to buy pension points to offset deductions. The concept of pension points applies to later retirement. Those who work beyond their regular retirement age receive 0.5 pension points per month. Another year of employment can bring in a pension supplement of six earnings points. In addition, you continue to pay into the pension fund – which also increases the later pension payment. You only receive additional pension points as long as you are not drawing a pension. The flexible pension is particularly suitable for people who retire earlier or later than planned, but do not want to give up their pension.
M. Wieser / Editor finanzen.net
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