What should I enter for the pension adjustment?

When adjusting your pension, you must state the difference between your current monthly pension and the pension you received in the year following the start of your pension. The tax-free pension allowance is set in the year after your pension begins and applies for life. This allowance remains unchanged despite later pension increases, which is why the pension adjustment is fully taxable.

Determining the pension adjustment

The pension adjustment is the difference between the pension payments of the current year and the payments from the year in which the pension allowance was set. You can find this difference in your pension adjustment statement or ask your pension provider.

Example:

• Pension payments 2014: 6 x 1.050 Euro + 6 x 1.056 Euro = 12.636 Euro
• Pension payments 2024: 6 x 1.380 Euro + 6 x 1.420 Euro = 16.800 Euro
• Pension adjustment: 16.800 Euro – 12.636 Euro = 4.164 Euro

Tip on pension adjustment

Irregular changes in the pension amount, e.g. due to the crediting of other income, do not count as a pension adjustment. Only regular increases, such as the annual pension adjustment on 1 July, are relevant.