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Retirement at 63: If you want to earn something extra, you have to stick to this limit

2022-08-09T04:13:58.051Z


Retirement at 63: If you still have to earn additional income, you have to stick to this limit Created: 08/09/2022, 06:00 By: Jasmine Farah Many Germans dream of retiring at 63. However, the result is less pension. Therefore, some have an additional income. This is something to consider. For many it is a dream, only a few can afford it: Retire at 63 years of age. But more and more people want


Retirement at 63: If you still have to earn additional income, you have to stick to this limit

Created: 08/09/2022, 06:00

By: Jasmine Farah

Many Germans dream of retiring at 63. However, the result is less pension.

Therefore, some have an additional income.

This is something to consider.

For many it is a dream, only a few can afford it: Retire at 63 years of age.

But more and more people want to enjoy their old age early, as figures from the German Pension Insurance (DRV) show.

Since it was introduced in 2014, hundreds of thousands of people have been insured every year.

It is possible, but sometimes with financial losses.

Retirement at 63: You are allowed to earn this much

Basically, the standard retirement age in this country is 65 years and eleven months.

In addition, you can retire earlier after an insurance period of 45 years.

Those who have been insured for a long time in particular can take advantage of the “Retirement at 63” early.

If you were also born before 1953, according to the German pension insurance, you can do this without any deductions.

Anyone who cannot show this and still wants to retire earlier must expect to receive a lower pension.

If you want to retire early, you can still earn money up to a certain limit.

© Daniel Gonzalez/Imago

Some want to compensate by earning some extra money.

Anyone who has reached the statutory retirement age can do so indefinitely.

You shouldn’t earn too much below that, otherwise the pension insurance scheme will get involved.

Retirement at 63: Additional earnings limit is shifting

It is therefore important to observe the additional income limit.

And here is good news: by 2020 it was 6,300 euros.

But because of the corona crisis, it has been increased significantly, for 2022 it is 46,060 euros.

There are two reasons for this: On the one hand, this is intended to relieve the financial burden on pensioners in these difficult times.

On the other hand, this gives them an incentive to continue working in order to counteract possible staff shortages caused by the virus.

But: 2023

If the additional income limit is to fall back to 6,300 euros, informs the pension insurance.

But what happens when you exceed this?

Although this is currently unlikely given the high limits, it could play a role again next year.

Finally, additional earnings are:

  • Salary from dependent work

  • Income from self-employment

  • agriculture or forestry

  • early retirement benefits

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Retirement at 63: These cohorts have the most deductions

Pension at 63: 40 percent of the pension can be reduced

So if you earn more than the currently applicable limit, 40 percent of the money earned in excess of this will be deducted from your monthly pension.

This also applies to your company pension.

In this case, this can also be shortened or even temporarily suspended.

The reason for this is that some company pensions are linked to the payment of the full statutory pension.

The pension insurance usually calculates possible deductions from the pension on July 1st.

Therefore, it is best to inform the pension insurance company at an early stage if there are any changes to the additional income limit or if it is exceeded.

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Source: merkur

All life articles on 2022-08-09

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