Retire at 60?
It is smarter to go into semi-retirement
Created: 08/08/2022 10:26 am
By: Jasmine Farah
In this country, many people retire at the age of 65 years and eleven months.
But if you don't want to wait that long, you can retire earlier.
That is how it goes.
Many Germans dream of retiring earlier and enjoying their old age.
But is that even feasible?
Yes, that is possible, explains the German pension insurance.
But only if you meet certain requirements.
The year in which you were born is very important.
This also determines when you are legally entitled to retire.
Retire at 60?
It is smarter to go into semi-retirement
However, if you want to retire earlier, you must also have enough money on hand to be able to finance your standard of living yourself.
At least if you are not yet entitled to a pension.
In principle, the standard retirement age in Germany is 65 years and eleven months.
But “retirement at 63” is becoming increasingly popular.
This is also generally the earliest time to stop working.
If you want to retire at the age of 60, you should take care of the financing at an early stage.
© Imago
So if you want to retire earlier, you have to expect deductions and financial losses.
However, there are also exceptions for people who have paid into the pension fund for at least 45 years.
This group of people is considered to have been insured for a particularly long time and can also retire at 63 without deductions.
On the other hand, if you “only” have long-term insurance and can show 35 years of contributions, you no longer have this advantage.
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Retirement at 60: These financial models exist
Until 2017, it was actually still possible to retire regularly from the age of 60.
However, due to the increase in the retirement age and in the course of legal reforms, this form of old-age pension was abolished.
The legislature no longer stipulates that employed persons should stop working at the age of 60.
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Those who finally retire early no longer pay into the pension insurance system.
As a result, there are no compulsory contributions up to the age of 67 and the statutory pension will be lower.
Financial experts therefore recommend making provisions at an early stage.
The following financial and savings models are available in private old-age provision:
Riester or Rürup pension
Employer-funded pension
fund savings plans
Other investments, such as real estate
Another option is to go into semi-retirement.
This is a model in which you can gradually reduce your working hours before retirement from the age of 55.
However, it is best to first discuss and negotiate this option with your employer.