In 2031, consumers will not be able to retire until they are 67.
With these tips, you can retire earlier – but there may be deductions.
Hamburg – Many consumers dread the idea of only being able to retire after 45 years as an employee.
However, it is often possible to apply for a pension before the statutory retirement age is reached.
Here you will find some tips and tricks - but there are fears that your pension will be deducted.
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Social insurance: | German pension insurance |
Founding: | October 1, 2005 |
Insured: | 56.7 million (December 31, 2020) |
Pensioner: | 21.2 million (as of July 1, 2022) |
Tips and tricks: How to retire earlier
The standard retirement age will be raised to 67 by 2031.
However, it may be possible to retire earlier.
However, consumers should then pay attention to how many deductions there are from their pension.
In principle, anyone who has been insured with the German pension insurance for 35 years can retire earlier.
However, those who retire at the age of 63 must reckon with deductions of up to 14.4 percent – 0.3 percent for each month that retires earlier.
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Many consumers want to retire before the standard retirement age – this is how it is possible.
© Imago (symbol image/montage)
Consumers who retire after a minimum insurance period of 35 years and were born before 1964 do not have to expect deductions.
Anyone who has earned below average earnings for a longer period of time in their working life can buy so-called pension points in order to increase their old-age pension later.
However, a pension point costs over 8000 euros.
Consumers should find out exactly from the German pension insurance whether this investment is worthwhile or whether an ETF or another financial investment will bring greater advantages in the long term.
Retire earlier – under certain circumstances this is possible without a reduction
Consumers who have paid into the statutory pension insurance for at least 45 years can retire without deductions.
Anyone born in 1964 or later can only do so at the age of 65.
In theory, it is even possible to retire at the age of 50.
This only works if you have made provision for your pension with private money.
However, there is no statutory pension at this age.
What seems attractive to many consumers is continuing to work while receiving their pension.
If you retire at the age of 63, this is possible with the flexible pension.
Here's how consumers can retire earlier:
At age 63:
Paid into the pension fund for at least 35 years (0.3 percent deduction per month)
Paid into the pension fund for at least 45 years (no deductions)
Possibility to buy pension points
Keep working while receiving your pension
At age 55:
Partial retirement – working hours are reduced to half
Possible for people with disabilities or professional soldiers
At 50 years:
Only possible with private money
When you turn 55, a part-time employment contract can also be an option.
It is even possible to continue working while receiving the statutory old-age pension.
Whether an earlier retirement is worthwhile for you should be clarified in a consultation with the German pension insurance.
However, this is only possible after 35 or 45 years of paying into the pension fund.
A financial cushion is essential for even earlier retirement.
List of rubrics: © Imago (symbol image/assembly)