Pensioners at the age of 63 – these cohorts are entitled to early retirement
Created: 01/13/2023 04:51
By: Ulrike Hagen
Many employees would like to retire at 63. But who is entitled to an earlier retirement before the standard retirement age?
And who has to pay deductions?
Update from January 12, 2023:
Update from January 12, 2023:
Did you know?
Pensioners can also receive child benefit – under these circumstances.
First report from January 4, 2023:
First report from January 4, 2023:
Berlin - The year is off to a good start for many consumers - because the turn of the year brought numerous changes in the law.
And there will also be a number of positive changes for pensioners in 2023 – among other things, there will be more pensions and citizen’s income.
But what about those who are thinking about retiring before the standard retirement age, i.e. about “retirement at 63”?
Basically, if you have worked a particularly long time and paid into the insurance fund, you have to accept little or no deductions.
On the other hand, it becomes expensive for a certain generation.
Early retirement pension:
Old-age pensions that the insured person can receive before reaching their regular retirement age
Regular age limit:
Retirement at 63: How long do I have to work to get a pension?
Basically, a distinction is made between the old-age pension for long-term – i.e. over 35 years – insured and particularly long-term – over 45 years – insured.
But when you can retire at the earliest depends not only on the contribution periods but also on your year of birth.
Because the retirement age has been increasing gradually since 2012: by one month per year.
By 2031, the standard old-age pension will be raised to 67 years.
That means: For those who were born in 1964 or later, a standard retirement age of 67 years applies.
Relaxed in retirement at 63: That is possible for many employees.
Old-age pension after 45 years – pension at 63 years
After an insurance period of 45 years, everyone can in principle retire earlier.
But: The old-age pension for the “particularly long-term insured” is colloquially called “pension at 63”.
De facto, however, only those born before 1953 can retire without deductions at the age of 63.
For those born between 1953 and 1963, the retirement age increases with the year of birth.
If you were born in 1964 or later, you can only retire without deductions at the age of 65, even after 45 years of contributions.
Nevertheless, in the past year alone, 26.3 percent of all new pensioners used this deduction-free "pension from 63", according to the pension insurance report of the federal government
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Retirement pension after 35 insurance years - when you can retire
Anyone who has paid into the pension insurance for 35 years benefits from the old-age pension for so-called "long-term insured persons".
This means that everyone born before 1963 can retire before their 67th birthday without deductions.
However, the retirement age is gradually being raised.
For those born in 1964 or later, the retirement age is 67 even after 35 years of contributions.
Exceptions to retirement at 67:
The retirement age will gradually be raised to 67 for all insured persons.
Some old-age pensions are exempt from this.
But higher entry ages will also apply to them in the future.
Old-age pension for those who have been insured for a particularly long time: Insured
persons who have completed at least 45 years of insurance and have reached the relevant age limit are entitled to this.
Old-age pension for severely disabled people
: The age limit for a deduction-free old-age pension for severely disabled people is gradually being raised from 63 to 65 years of age.
Old-age pension for miners who have worked underground for many years
: For those insured persons who were born after December 31, 1951, the age limit will be gradually raised to 62 years of age.
Source: German pension insurance
Retire earlier: How to retire at 63
In principle, only very long-term insured persons, i.e. over 45 years of age, are entitled to a “pension at 63”.
But even those who can prove shorter periods of insurance and who are younger have the opportunity to retire earlier.
However, deductions have to be accepted for this.
More and more people are choosing the option of retiring before the standard retirement age and accepting a reduction in the amount of their pension.
Federal Institute for Population
Research states that this group already made up a quarter of all those who retired in 2021: "On average, they retired almost 28 months before the standard retirement age."
Retirement at 63 for long-term insured: How high the deductions are for your year
If you want to take your old-age pension early as a long-term insured person, you can expect a deduction of 0.3 percent per month – up to a maximum of 14.4 percent – of your pension payments: As can be seen in a table from merkur.de, you have to For example, an employee who was born in 1947 could accept a 7.5 percent deduction.
Anyone born in 1960 can expect a 12 percent drop.
And everyone born in 1964 or later pays a retirement age of 63 with the maximum deduction of 14.4 percent.
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Deductions for pension at 63: Compensating for deductions can be worthwhile
The good news is that these deductions can be fully or partially compensated for with special payments.
From the age of 50, the payments can be made in the form of a one-off payment or as part payments.
The conditions here are better than with private pension insurance, for example, since the special payments can be claimed for tax purposes, according to
Another advantage: those who do not retire early will be rewarded with a correspondingly higher pension.
A pension increase for July 2023 has just been decided - by around 3.5 percent for pensioners in western Germany and by 4.2 percent for pensioners in eastern Germany.
Early retirement: additional income limits removed
Another piece of good news for everyone who is toying with the idea of early retirement: At the beginning of December, the Bundestag decided to abolish the additional earnings limit for early retirement at the age of 63 without replacement.
In the case of recipients of disability pensions, the additional earnings limit increases from EUR 6,300 per year to up to EUR 34,500.
And because unemployment benefit II (colloquially Hartz IV) will become citizen benefit from January 1, 2023 and payments will increase, the basic security for pensioners whose pension is not enough to live on will also increase.
In total, retirees are entitled to eight grants, with which retirees can save many hundreds of euros in 2023.