What information do I need to provide about the duration of the pension?
Life annuities from taxed income depend on the lifetime of the beneficiary. If the annuity ends with the death of the beneficiary, it is important to indicate this in your tax return. The income share for private pensions is based on the age of the beneficiary at the start of the pension.
Fixed-term annuities from taxed income are also linked to a person's life but are limited to a specific term. They are paid until the end of the specified term at the latest but expire if the beneficiary dies earlier.
The term of the annuity is crucial for calculating the income share. Please note that pensions from the statutory pension insurance are not taxed based on the income share but with a higher taxation percentage.
Originally, people retiring from 2040 onwards were supposed to fully tax their statutory pension income. However, this has changed, as the taxation percentage will only increase by half a percentage point annually from 2023, starting with the 2023 pensioner cohort, and will reach 100 per cent for the first time in 2058 for that cohort (§ 22 No. 1 a) aa) EStG, amended by the "Growth Opportunities Act").
