Retirement at 63: This is how high the deductions are for your year
Created: 03/04/2022, 08:51
By: Franziska Kaindl
If you want to retire at 63, you have to reckon with high deductions in some cases.
© K. Schmitt/Imago
Many workers have the opportunity to retire earlier, even as young as 63.
But many cohorts have to expect deductions from their pensions.
Why work longer when you can retire earlier?
That's what many employees think as they approach retirement age.
However, the earliest you can retire without deductions depends on your year of birth and the number of contribution years.
The earliest retirement age is 63.
A distinction is made between the old-
age pension
for those who have been insured for
a long time
and those who have
been insured for a particularly long time
.
You need 35 insurance
years for the old-age pension for long-term insured persons
.
For the old-age pension for those who have been insured for a particularly long time, it is
45 years of contributions
.
Depending on which year you belong to, different rules apply to your pension at 63.
Retirement pension after 45 years: How to retire at 63
In principle, it is possible to retire earlier after an insurance period of 45 years.
The old-age pension for those who have been insured for a particularly long time is often referred to as “pension at 63”, but this no longer applies to everyone.
Only those
born before 1953
can
retire at 63 without deductions
.
However, since the retirement age is gradually being raised, the age of entry is also shifted to a later point in time with the year of birth – this affects those born between 1953 and 1963. Those born in 1964 or later can only retire early without deductions at 65 – for them it should correctly be "Retire at 65".
Also interesting
: Do you want to retire earlier?
Experts explain how it can work.
Retirement pension after 35 years: pension at 63 possible?
From 35 years of insurance, you are considered “long-term insured” with the statutory pension insurance and can make use of the “pension at 63”.
However, 0.3 percent will be deducted from
your pension for each month that you retire before the statutory retirement age
.
The deduction remains permanent.
A maximum of 14.4 percent of your pension can be deducted as a result.
The table shows how high the deductions are for each year of birth for those who have been insured for many years if they want to retire at 63.
Table: Deductions for retirement at 63 for long-term insured
vintage | Regular start of retirement | early retirement | Deductions for retirement at 63 |
|---|---|---|---|
1947 | 65 years + 1 month | 25 months | 7.5 percent |
1948 | 65 years + 2 months | 26 months | 7.8 percent |
1949 | 65 years + 3 months | 27 months | 8.1 percent |
1950 | 65 years + 4 months | 28 months | 8.4 percent |
1951 | 65 years + 5 months | 29 months | 8.7 percent |
1952 | 65 years + 6 months | 30 months | 9 percent |
1953 | 65 years + 7 months | 31 months | 9.3 percent |
1954 | 65 years + 8 months | 32 months | 9.6 percent |
1955 | 65 years + 9 months | 33 months | 9.9 percent |
1956 | 65 years + 10 months | 34 months | 10.2 percent |
1957 | 65 years + 11 months | 35 months | 10.5 percent |
1958 | 66 years | 36 months | 10.8 percent |
1959 | 66 years + 2 months | 38 months | 11.4 percent |
1960 | 66 years + 4 months | 40 months | 12 percent |
1961 | 66 years + 6 months | 42 months | 12.6 percent |
1962 | 66 years + 8 months | 44 months | 13.2 percent |
1963 | 66 years + 10 months | 46 months | 13.8 percent |
1964 | 67 years | 48 months | 14.4 percent |
also read
Retirement at 63: Which age groups are allowed to retire earlier without deductions
Retirement at 63 – that's what many employees dream of.
However, it is not possible without a deduction for all years.
Read here about who is allowed to take early retirement without deductions.
Retirement at 63: Which age groups are allowed to retire earlier without deductions
Retire earlier: You have to take this into account when applying and paying taxes
Retiring earlier – is that even possible and can I afford it?
The Peter K. case study shows what applicants need to consider and how they can calculate their actual pension.
Retire earlier: You have to take this into account when applying and paying taxes
Also Read
: Retire Earlier: Here's How Much You'll Have to Pay for It to Make That Dream Come True.
Retirement at 63: Additional income from early retirement
Employment can affect the amount of the pension in the case of early retirement.
Additional income includes, among other things, a gross salary, taxable profit (e.g. from a commercial enterprise or agriculture and forestry) or board pension.
Until you reach your personal retirement age, you can earn
a maximum of EUR 6,300 per calendar year
without affecting the amount of your pension.
If your salary is higher than the exempt amount, only the excess amount will be taken into account.
According to the German pension insurance, this is divided by 12 and credited at 40 percent to the monthly pension.
For the year 2022, due to the corona pandemic, there is an increased earnings limit for early retirement of EUR 46,060 per calendar year.
(fk)
