Pension taxation 2024: Taxable pension share increases - planning relief for pensioners.

Pension taxation 2024: Taxable pension share increases - planning relief for pensioners.

According to a report by www.wa.de, there will be some changes in 2024 for retirees who are retiring. From January 2024, the taxable pension share will increase from 83 to 84 percent, which means that 16 percent of the first full gross annual pension remains tax-free. In addition, the basic allowance increases from 10,908 euros to 11,784 euros. Politicians are also planning tax relief for pensioners, but this has not yet been finally clarified.

The increased taxable pension share from 2024 could lead to an increase in the tax burden for new pensioners who receive a higher pension. The higher the pension, the more taxes would have to be paid. This could lead to reduced disposal of income in retirement and thus also have an impact on private consumption.

However, due to the increase in the basic allowance, pensioners with lower pensions could continue to receive tax relief, as their income remains tax-free up to this amount. This could help stabilize the financial situation of retirees with lower incomes.

The planned tax relief from politicians could have a positive impact on the financial situation of pensioners if it is implemented. This would help reduce the tax burden in the long term and thus improve financial planning in retirement.

Overall, the tax development could lead to a higher burden for new pensioners in 2024, but the planned tax relief measures could also have a positive impact on the financial situation of pensioners.