2024-10-01 05:40:08
Retirement
Finance
Government

Pension Reform Sparks Controversy Among Retirees

The Ministry of Finance is introducing a pension deduction tax that may lower retirees' net monthly income. An expert commission suggests exempting seniors from filing tax returns and implementing a lump-sum deduction for expenses.

This plan, viewed by critics as a hidden tax hike, aims to treat retirees similarly to employees. While the traffic light coalition shows openness to the reform, its realization within the current legislative period remains uncertain.

Furthermore, a new proposal for private retirement plans is on the horizon, allowing citizens to select from various options, including a government-supported savings account starting in 2026. Estimated costs could rise significantly, prompting debates on the long-term implications for retirees and the state budget.

Frankfurter Rundschau
30. September 2024 um 19:30

From 2026, 600 euros per year for every citizen: The traffic light coalition is launching a new pension plan

Politics
Finance
Economy
Finance Minister Christian Lindner (FDP) is planning a new model for private pensions from 2026, in which citizens can choose between a retirement savings account and other options. The account is intended to enable investments in ETFs and stocks and will receive government funding.
Frankfurter Rundschau
1. Oktober 2024 um 03:59

This pension change is intended to reduce the monthly net income of pensioners

Politics
Finance
Economy
The Ministry of Finance is planning changes to the pension system; a pension deduction tax is intended to result in pensioners receiving less net income per month. An expert commission recommends this withholding tax on pension income in order to treat pensioners like employees. Critics see this as a concealed tax increase.
tz
1. Oktober 2024 um 03:59

This pension change will result in retirees receiving less net income per month

Politics
Finance
Economy
The Ministry of Finance is planning a pension deduction tax that would result in retirees receiving less net income per month. The expert commission proposes to exempt retirees from the obligation to file a tax return and to introduce a flat-rate deduction for work-related expenses.
CW

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