The method of determining a widow's pension while considering her own pension. - The method of determining the widow's pension in relation to an individual's personal pension amount.
When a loved one passes away, losses can include more than just emotional pain. Often, a significant source of income is lost, too. In such cases, survivor benefits like widow's or orphan's pensions aim to bridge the financial gap. These pensions typically support individuals with limited income of their own. However, they are subject to income limitations, reducing the benefit amount if the survivor earns above a certain level.
The criteria for survivor pensions can be intricate. Factors affecting the pension amount, allowances, and tax rates include the calendar year, the deceased's date of birth, pension entry age, the survivor's age, and marriage date. Due to this complexity, consulting experts for personalized advice is essential.
Widow's Pension Amount Calculation
Initially, a tax-free allowance applies, currently at €1038.05 for singles in 2025. This amount is derived from the current pension value per pension point (€39.32) multiplied by a factor of 26.4. For survivors with eligible underage children, the tax-free allowance increases due to child supplements, approximately €1500 for two children.
Next, the survivor's net income or pension exceeding the tax-free allowance is considered. If, for example, the survivor's monthly pension is €1500, subtracting the €1038 tax-free allowance results in €462. A 15% deduction is then applied, amounting to €69.30 for the survivor's pension. Consequently, the widow's pension is reduced by this amount when the survivor's net income surpasses the tax-free allowance.
For working survivors yet to collect a pension, their net income from work serves as the basis. A 40% flat rate is subtracted from this amount, leading to a reduction in the widow's pension, e.g., 584 euros for a €2500 monthly income.
Income Considerations
To determine the net income, all forms of income, excluding 'means-tested benefits' like disability pensions, unemployment benefits, and basic security, are processed. Income sources include salaries, rental income, capital income, savings interest, and dividend income, as well as assumed future income for self-employed individuals.
After calculating the gross income for all sources, a 40% flat rate is applied to employee incomes. A 15% rate is applied to pensions, while rental income is taxed at 25%. The net income is the total sum of the remaining values.
Survivor's Pension Taxation
For taxation purposes, the pension income and widow's pension are treated identically. A basic allowance of €12,084 in 2025 applies, which is subtracted from the overall pension income. Subsequently, taxation begins only when income exceeds the tax-free amount, around €1000 per month.
New pensioners can receive a gross pension of around €16,240 annually (€1,323 monthly) without paying taxes since the taxable portion was 83% in 2024. Pensioners can claim special expenses and provisions for old age, as well as extraordinary burdens during their annual tax returns. This reduction results in a taxable income of around €12,084. However, the taxable portion of the pension varies based on the retirement year and increases gradually each year. By 2040, 100% of the gross pension income will be subject to taxation.
[1] "Widow's pension – amount and conditions" – German Federal Pension Insurance [Accessed September 2022][2] "Widower’s pension" – German Federal Pension Insurance [Accessed September 2022][3] "Orphan's pension" – German Federal Pension Insurance [Accessed September 2022]
In some retirement planning scenarios, calculating the survivor's pension is crucial, especially if dependents are involved. This can help determine the amount of survivor's pension that might qualify for child supplements.
Understanding the income limitations for survivor pensions is essential to avoid reducing the benefit amount excessively. Consulting experts can provide personalized advice on how to navigate these income thresholds efficiently.
If the survivor is still working, their net income from employment serves as the basis for calculating the impact on the widow's pension, with a 40% flat rate subtracted from their income.
