Drawing a pension and continuing to work

Which situation fits you?

Choose a starting point. Every section remains accessible through the contents. Figures refer to 2026; the separate sickness-benefit change starts in 2027. Rules reviewed as of 11 November 2026.

Old-age pension: You may keep working

There is no additional-earnings limit for a regular or early old-age pension. Wages do not reduce that pension simply because of their amount. A full old-age pension pays the whole entitlement; a partial pension pays a chosen share. These are different from full or partial reduced earning capacity. Taxes, insurance and other benefits can still change.

Early retirement: No Aktivrente yet

You may receive wages and an early old-age pension before your personal standard retirement age. But the Aktivrente exemption is not available yet. Working does not erase early-retirement reductions. Also check whether your employment contract ends at retirement or needs changing.

Aktivrente from 2026

From 1 January 2026, up to €2,000 of eligible monthly wages can be exempt from income tax. You must have reached your personal standard retirement age and have dependent employment with the employer pension contributions or equivalent subsidies required by law. You do not have to draw a pension. Eligibility starts in the month after reaching that age, not at a universal age of 65. Minijobs, self-employed profits and civil-service remuneration do not qualify. You may earn more: only the excess eligible wages remain subject to normal tax rules. The exemption does not remove social insurance contributions.

Bonuses and several employers

Holiday pay, Christmas pay and bonuses share the monthly exemption with normal wages. Only the part attributable to eligible periods can qualify. Unused monthly allowances cannot be moved to other months. Several employers do not mean several allowances. Payroll must check allocation and any confirmation needed for tax class VI.

Eight wage amounts compared

This comparison only splits wages for Aktivrente purposes; it does not calculate your final tax. Assume one job and a fully eligible month. The €603 row specifically assumes a minijob, which has separate taxation, often a flat-rate tax. Taxable wages are not an amount deducted in full as tax.

Why €2,000.01 needs a separate assessment

In 2026 the midijob transition range covers regular combined wages from €603.01 to €2,000 inclusive. At €2,000.01 that calculation regime ends. Within it, the total contribution and your share use different assessment bases for each insurance branch. At the upper limit the reduced bases reach actual wages. There is a discontinuity in the applicable calculation regime, not automatically a large jump in deductions under the assumed ordinary health and care shares. Do not invent a contribution cliff or keep a midijob calculation unchanged above the limit. Multiple jobs, bonuses and rounding need separate checks.

Health insurance: Your status matters

Compulsory insurance is the broad category. Pensioners’ health insurance (KVdR) is one form and depends partly on previous coverage. Compulsory insurance as an employee can take priority while you work. Voluntary statutory members may also pay on rent and investment income; minimum assessment and subsidies need checking. Private insurance uses actual contractual premiums and possible subsidies, not invented statutory percentages.

Contributions on pension and wages

Pension and wages are separate contribution-bearing income. The general health rate of 14.6% plus your insurer’s supplement normally applies to a statutory pension, shared with the pension provider. Employment without sickness-benefit entitlement normally uses 14.0% plus the supplement, shared with the employer except for special midijob allocation. The joint health/care ceiling is €5,812.50 per month in 2026. Do not apply a separate full ceiling to every income stream: ask the insurer to check priority, limitation and any refund. The official average supplement is 2.9% in 2026, not necessarily your insurer’s rate.

Long-term care insurance and children

The care rate is 3.6%, or 4.2% where the childlessness surcharge applies. This surcharge generally starts at 23; people born before 1940 are among the exceptions. Parenthood permanently removes it. Each qualifying child under 25 from the second to the fifth reduces your own rate by 0.25 percentage points. You bear the care contribution on your pension alone. The ordinary employee share for a parent with one child is 1.8% outside Saxony and 2.3% in Saxony; midijob rules still matter. Count two to five eligible children simultaneously under 25, not birth order; the maximum reduction is 1.0 percentage point.

Eight everyday examples

Contribution assumptions for examples 1–4 and 8: 2026, beyond standard retirement age, full old-age pension, compulsory statutory health insurance, parent with exactly one child, outside Saxony, no own pension or unemployment contribution, no sickness benefit, 2.9% health supplement, no other income and below the combined contribution ceiling. These are partial calculations, not overall net income. Examples 4 and 8 use the comparison rates explicitly stated there.

Changing statutory health insurer

Pensioners can generally change between statutory health insurers. Moving between statutory and private insurance follows different eligibility rules. Compare accessibility, support, treatment arrangements and existing approvals as well as price.

Working longer and increasing your pension

Before standard retirement age, insured employment normally builds further pension rights. Afterwards, full old-age pension recipients are generally exempt from their own pension contributions while the employer continues paying. That employer payment alone does not increase their pension. You can waive the exemption prospectively through your employer, pay your share and build further rights. Partial pensions have different pension-insurance rules. Ask DRV to compare the cost and prospective increase.

Sickness benefit: Change from 2027

A full old-age pension excludes statutory sickness benefit. In 2026 a partial pension can preserve eligibility subject to other conditions; it is not an automatic guarantee. Official DRV guidance states that from 1 January 2027 an old-age partial pension above two thirds of the full entitlement also excludes sickness benefit. A 99.99% pension will no longer solve this. At no more than 2/3, entitlement may remain, subject to the insurer’s assessment. DRV says a change for January 2027 must reach it by 31 December 2026. Consult both providers before reducing your pension.

What remains after deductions?

Separate gross wages, exempt wages, taxable wages, your contributions and wage-tax withholding. Show gross pension and its health/care deductions separately. Pension taxation depends partly on when the pension began. Wage tax is a payment during the year; annual income tax considers other taxable income too. Monthly payout is therefore not final combined net income. Prepare birth month/year, pension type and start date, gross pension, wages, bonuses, insurance status, supplement, children, federal state and tax details. The pension mode shows contribution-only amounts before tax. It does not calculate combined annual income tax. For ordinary employment with compulsory statutory health insurance, monthly wage withholding for 2026 is also estimated. Aktivrente, employee pension/unemployment coverage and age relief are treated separately. Tax class VI, flat-rate minijob tax and special payroll cases are not estimated.

Reporting changes, benefits and sources

Before starting, gather your pension decision and employment contract. Tell payroll your pension type, retirement-age status and insurance status; ask the insurer to check contributions. Report work and income changes promptly to DRV for reduced-earning-capacity and survivor pensions. Housing benefit or basic income support may also be reassessed. Tax-free wages are not automatically disregarded for benefits: notify the responsible office and await its decision. The sources establish rules, not your personal payout.

How does work affect a reduced-earning-capacity pension?

A reduced-earning-capacity pension is not an old-age pension. In 2026 the annual additional-earnings limit is €20,763.75 for full reduction and at least €41,527.50 for partial reduction, possibly higher individually. Health-related capacity under normal conditions of the general labour market also matters. A minijob therefore does not prove that your pension will remain unchanged. Discuss the job offer, hours and expected annual earnings with DRV first. Trial work has separate conditions; the calculator does not confirm pension entitlement.

Will work reduce my survivor pension?

Income can be offset against a widow’s or widower’s pension. DRV calculates relevant net income using statutory deductions. Generally 40% of the amount above the applicable allowance is offset, not 40% of all wages. Allowances, children and old or new rules can change the outcome. Special rules apply for the three calendar months following the month of death. The pension mode does not calculate individual pension reductions; report income and changes to DRV.