Refund of funds for retirees in Germany, thanks to the basic pension allowance

Have you been paying social security subscriptions for decades and now receiving a meager pension? There’s no need to worry, as you now have the right to reclaim your money, thanks to a bonus on top of the basic pension.

This tax-exempt allowance, starting from the year 2021, amounts to an average of 86 euros per month. The best part is that it doesn’t require any complications; if you are eligible for this allowance, the social security will automatically transfer it to you along with your pension.

Refunds for retirees in Germany, thanks to the basic pension bonus

Are you benefiting from the basic pension allowance?

The pension supplement is granted to individuals who have spent many years as recipients of social security benefits and receive a modest pension. Starting from the year 2023, this supplement will be provided to approximately 1.1 million beneficiaries in Germany.

The only condition is that you must have at least 33 years of Social Security contributions, which includes periods of work, social care, elderly care, as well as periods of illness and rehabilitative treatment.

Your income during the employment period should be less than 80% of the average income.

Faulty data spoils the calculation

Unfortunately, an error occurred while entering the tax exemption for the basic pension bonus at the end of 2022. Consequently, the Social Security was unable to submit the tax data correctly at the beginning of 2023.

Therefore, taxes have been calculated on the basic pension allowance, which is tax-exempt. However, the Social Security Administration is aware of this error and is working to review the inaccurate data that was sent.

You can also learn more about the types of price increase assistance in Germany and who benefits from them.

How can money be recovered?

If you were required to pay taxes on your basic pension allowance, you have the right to claim a refund of these funds from the tax authority. For further information, you can contact either the tax authority or the social security office.

The incorrect payments will be refunded

If you have paid taxes on the basic pension bonus that is tax-exempt, do not worry, you will be able to reclaim the mistakenly paid amounts from the tax authorities.

Tax interest will correct erroneous tax decisions. However, you may need to wait until the new tax decisions are processed to reclaim your money. During this period, you should handle the financial shortage with caution.

Be cautious and verify for yourself

We advise affected individuals receiving the basic pension allowance to review the reported retirement payments for the years 2021 and 2022.

Verify if the basic pension allowance is listed separately in the total annual retirement income. If it is listed separately, this means that the reports are accurate.

If it is not listed separately, you must manually include it in your tax declarations and ensure that it is tax-exempt.

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