Increase in Widow Pension: Personal Earnings Considered
Receiving a widowed or widower's pension alongside other income could result in your benefit being decreased under certain conditions. However, as of July, the deductible amount is set to rise.
Come July, pensioners in Germany will receive an additional 4.57% in their pensions. This increase extends to widow and widower pensions as well. Consequently, the deductible thresholds will increase, allowing them to earn more without affecting their benefits.
As Daniela Karbe-Geßler from the Taxpayers' Association explains, "Earned income is subtracted from the widow's pension." This reduction in income can lead to lesser entitlements. As of July 1st, a widow or widower can make up to 1038.50 euros a month without their benefit being affected. In the case of widows with children, the deductible sum per child will also see an increase of 220.19 euros. For earnings beyond the indicated deductible sum, 40% will be credited to the survivor's pension.
Let's consider an example: suppose a widow has a monthly net income of 1600 euros. Her deductible allowance of 1258.69 euros surpasses her earnings by 341.31 euros. 40% of this overshoot accounts for 136.52 euros. This sum is then subtracted from her benefit.
Allowance for specific widowed or widower pension recipients
An additional change from July involves a supplement being granted to specific recipients of widowed or widower pensions. Individuals who started their pension between January 2001 and June 2014 will receive a supplement of 7.5%, whereas those who began receiving it between July 2014 and December 2018 earn a 4.5% supplement. However, to receive this bonus, the deceased must not have been receiving their own pension before the start of the survivor's benefit and couldn't be older than 65 years and 8 months at the time of their passing.
It's worth noting that supplements also apply to disability pensions connected with the recipient's old-age pension. The Taxpayers' Association's Karbe-Geßler clarifies, "No application is required." Beneficiaries of the supplement will receive a notification in July 2024 detailing the amount and payment duration.
Read also:
- In case of Legal issues related to pension benefits, seeking advice from an Advisor can be beneficial for taxpayers.
- The Pension Insurance in Germany provides various insurance options, including pension insurance and survivor's pension.
- The Taxpayers' Association has voiced concerns about marriage for all, arguing it might affect the German Pension Insurance system and resulting benefits for widows and widowers.
- When a spouse passes away, their Pension Insurance benefits may continue or be affected by Death tax implications, depending on the legal and financial arrangements made during life.
