Pension taxation 2040: How the planned change could reduce the tax burden

Pension taxation 2040: How the planned change could reduce the tax burden

According to a report by www.fr.de, the federal government is planning a change in the gradual taxation of pensions. This plan would bring significant tax savings to many retirees. According to pension expert Werner Siepe, people with a very high pension would particularly benefit by being able to save up to 23,522 euros.

The federal government plans to change the gradual taxation of pensions, which has previously led to double taxation. This change would result in the taxable portion increasing more slowly and full taxation would only occur in 2060, when the increase would only be 0.5 percent instead of the current 1 percent.

Pensioners who have only recently received a pension or unmarried people who do not receive a survivor's pension could particularly benefit from this change. People with a very high pension and a high marginal tax rate would save the most.

The impact of this change could be felt on the financial markets, as pensioners could potentially spend more on consumption thanks to the tax savings. Additionally, many people's retirement planning and retirement savings strategy may change given the potential tax savings.

Overall, this planned change in pension taxation could lead to pensioners having more financial flexibility and thus contribute to increasing consumption and economic recovery.