How much of the pension is taxable depends on the year in which you retired. While only half of the pension had to be taxed when retiring in 2005, new retirees will have to pay 84 percent in 2026.

How does tax liability work for pensioners?

Don’t worry, if you exceed the tax allowance you won’t suddenly have to pay tax on the entire amount. Taxes just have to be paid the amount that exceeds the exemption limitto be paid. So if you’re just over the amount, you’ll only pay a few euros.

What is important, however, is that other income, such as rental income or other pension payments, count towards the same tax allowance. Higher taxes will also apply here after the increase.

With advertising costs, Special editions and extraordinary loads Retirees reduce their tax burden. Deductible items are primarily costs for pension advisors, doctors, medications, nursing homes, cleaning assistance, insurance contributions or donations.