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Schnitzer Rejects Active Pension

Monika Schnitzer, head of the German Council of Economic Experts, criticizes the "active pension," which would allow retirees to earn an additional €2,000 tax-free starting next year. "I don't expect the active pension to significantly increase employment," Schnitzer told the Rheinische Post. She believes it will primarily lead to costly windfall gains. "Retirees who are already working will gladly take advantage of it." The Munich-based econom…
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Monika Schnitzer, head of the German Council of Economic Experts, criticizes the "active pension," which would allow retirees to earn an additional €2,000 tax-free starting next year. "I don't expect the active pension to significantly increase employment," Schnitzer told the Rheinische Post. She believes it will primarily lead to costly windfall gains. "Retirees who are already working will gladly take advantage of it." The Munich-based econom…

The Federation of German Taxpayers (BdSt) has announced a constitutional challenge against the active pension scheme introduced by the federal government. The association criticizes the fact that the tax benefit only applies to employees and sees this as a clear violation of the principle of equality.

The pension package remains a source of unrest for the government coalition: the taxpayer's federal government wants to sue against the active pension because freelancers and self-employed people remain out of the question. The move is not surprising, as there have been warnings from the outset that the planned tax exemption for workers of retirement age violates the principle of equality. The government wants to put an emphasis on the shortage …

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Herbert Frommes Versicherungsmonitor broke the news in on Tuesday, December 23, 2025.
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