The age relief amount still exists, but it is becoming less and less. The rules of the game were last adjusted in 2023 with the Growth Opportunities Act. Since the innovation, the age relief amount has fallen by 0.4 percentage points every year from 2023.
- In 2023 it was 14 percent of the assessment basis, but a maximum of 665 euros
- 2024 at 13.6 percent and a maximum of 646 euros
- for 2025 it was only 13.2 percent and a maximum of 627 euros
- In 2026 it will be 12.8 percent and a maximum of 608 euros
Once you have met the requirements for the retirement allowance, you keep it for life.
However, due to the annual reduction, it is also clear that the allowance will continue to shrink over the next few years, and by 2058 it will have disappeared completely. The calculation is as follows: You first calculate the assessment basis, i.e. the sum of wages and other income.
Take the valid percentage of this, which is 12.8 percent for 2026. If this is over 608 euros, you will receive the maximum allowance, otherwise the calculated value.
The tax-free amount is deducted directly from the taxable income amount. This noticeably reduces your tax burden.
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