Active pension scheme expected to start in January is part of chancellor’s ‘autumn of reforms’ to tackle economic stagnation

Germans who continue in the labour market beyond retirement age will be able to earn up to €2,000 (£1,750) a month tax-free on top of their pension under a scheme aimed at boosting economic growth and labour force participation rates.

The “Aktivrente”, or active pension scheme, due to come into force in January, was promised on the campaign trail by the chancellor, Friedrich Merz, before he came into office five months ago.