Retiring earlier in 2023 – What new pensioners should consider when starting out
Created: 01/11/2023 10:43 am
By: Robin Dittrich
The normal retirement age is 65 years.
In some cases, however, employees in Germany can already retire at the age of 63 - which must be taken into account.
Hamburg – Many consumers in Germany can hardly wait to enter retirement age.
Those who have been working for a particularly long time can even retire at the age of 63.
However, there are a few things to consider.
For which future retirees is early retirement worth it at 63?
Early retirement pension: | early retirement |
Definition:\t | Old-age pensions that the insured person can receive before reaching their regular retirement age |
Regular age limit:\t | 65 years |
Retirement at the age of 63 – what needs to be considered for future retirees
The normal retirement age is currently 65 years.
However, the age limit for the standard old-age pension will gradually be raised to 67 years by 2031.
Anyone born after 1964 can therefore retire at the age of 67.
However, those who have been paying into pension insurance for a particularly long time may be able to retire much earlier.
45 years of insurance must be fulfilled.
There are a few points to consider when retiring at the age of 63 – rentenbescheid24.de provides tips and tricks.
Quitting work earlier – a dream for many.
But retiring at 63 usually means less money for retirees.
© Felix Jason and Zoonar / Imago
Anyone who thinks that they can retire at the age of 63 should check this carefully.
It can be clarified with the pension insurance whether there is an entitlement or which requirements are still missing.
It should then be checked whether deductions have to be paid in the event of early retirement at the age of 63.
According to the German pension insurance, there can be deductions of up to 14.4 percent if you retire after 35 years of insurance.
Anyone who was born before 1953 and retires at 63 after 45 years of insurance does not have to pay any deductions.
Retirement at 63 usually means a lower pension
If you retire at the age of 63, you should consider that less pension will probably end up in your account.
This happens for the simple reason that less has been paid into the pension fund.
Those who work longer can significantly increase their pension.
With the pension calculator of the German pension insurance, the pension should be calculated exactly.
Although there are some grants for retirees, the pension will almost always be lower than when you retire at regular retirement age.
Evidence required to apply for a pension at age 63:
tax identification number
pension insurance number
ID card or birth certificate
Proof of health and nursing care insurance
International Account Number
If you still want to work at the age of 63 in addition to your early retirement, you must first inform your employer that you want to retire – then the health insurance contributions will change.
It should be checked beforehand whether the current employment relationship allows you to retire at all or whether you have to give notice.
Under certain circumstances, however, it can have advantages not to give notice: keyword company pension.
Is this offered in your company?
Finally, according to rentenbescheid24.de, income tax should be considered.
Better to pay in advance than risk a high back payment.
By the way: Read here how pensioners prepare for the end of their lives.