Widow’s pension: How is it counted towards your own pension?

If your life partner dies, widows’ and orphans’ pensions are intended to ensure that the surviving dependents’ livelihood is reasonably secure. The same applies if a parent dies and the children are still minors or in education, then an orphan’s pension is paid. However, the following applies to both types of survivors’ pension: They are primarily intended to support those who do not have a high income themselves. They are therefore reduced as soon as the income of the surviving dependents exceeds a certain level.

In general, the conditions for survivors’ pensions are complicated. And both the pension levels, allowances and tax rates depend on the calendar year, the date of birth of the deceased, the respective retirement age, the age of the surviving dependents and the date of marriage. It is therefore important to consult experts who can give you specific tips in your own case. However, the following principles apply:

There is initially an allowance, which is currently 1,038.05 euros for single people in 2025. It is calculated from the current pension value per pension point (currently 39.32 euros) and is multiplied by the factor 26.4. If the surviving dependent has younger children who are still entitled to an orphan’s pension, the allowance is increased by child allowances; for two children it is around 1,500 euros.

It is then determined how far your own net income or net pension is above this allowance. Assuming your own monthly pension is 1,500 euros, minus the 1,038 euros allowance, that leaves 462 euros. The German pension insurance deducts a flat rate of 15 percent of this. In this case that results in 69.30 euros. The widow’s pension is then reduced by this amount because her own net pension is slightly higher than the allowance allows.

For surviving dependents who are still working and do not receive a pension themselves, the net income from work, which is above the tax-free amount, is used as a basis. A flat rate of 40 percent will be taken into account. So if you earn 2,500 euros, less 1,038 euros, you are 1,462 euros above the tax-free amount. Of this, 584 euros will be credited, i.e. deducted from the widow’s pension amount.

All types of income are used to determine the net income, except for the so-called “needs-oriented benefits”, which are disability pensions, citizen’s benefit and basic security. The benefits from state-funded pension contracts (i.e. Riester and Rürup pensions) are also not included.

Income such as the monthly pension or monthly income, income from renting and leasing, capital income (i.e. savings account interest or stock income) and, for the self-employed, the expected annual income are added up. The gross amounts of all income are first determined. For employees, a flat rate of 40 percent is then deducted, which should roughly correspond to the tax and contribution burden of dependent employees. For pensions, a flat rate of 15 percent is deducted, which is supposed to correspond to the usual taxes and health insurance contributions. 25 percent is deducted from rental income. The remaining values ​​are added up and result in the net income.

You then proceed as described above to determine the remaining part of the widow’s pension that will be paid out.

For tax purposes, it is irrelevant whether someone only receives a pension or also receives a widow’s pension. The basic rule is: both incomes are added together and a basic allowance applies again. This time the basic allowance for pensioners, which will be 12,084 euros in 2025. This basic allowance is deducted from your own pension income. The taxation of the pension only begins at around 1000 euros per month.

According to the Federal Ministry of Finance, new pensioners can currently receive a gross pension of around 16,240 euros annually, or 1,323 euros per month, without paying taxes on it, because: The tax share of the pension was already 83 percent in 2024, which means that 13,481 euros of the 16,240 euros annually are subject to taxation. Pensioners can initially deduct special expenses and pension expenses, as well as claim extraordinary burdens, which is done via the annual tax return. This reduces your pension, so that 12,084 euros remains taxable income.

However, the respective taxation portion of the pension is not the same for all pensioners, but depends on the year in which they retire and increases slightly every year. In 2005, this increasing tax rate began at 50 percent. In 2040, 100 percent of gross pension income will be taxable.