The regular retirement age is 65 years. In some cases, however, employees in Germany can retire at the age of 63 – but there are prerequisites for this.
Update from January 12, 2023: Did you know? If pensioners receive an old-age pension and still want to continue working, contractual rules must be observed.
First reported on January 11, 2023: Hamburg – Many consumers in Germany can hardly wait to reach retirement age. If you have been working for a particularly long time, you can even retire at the age of 63. However, there are a few things to consider. For which future pensioners is early retirement at 63 worthwhile at all?
|Early retirement pension:||Early retirement|
|Definition:\t||Old-age pensions that the insured person can reach before reaching his or her regular retirement age|
|Regular Age Limit:\t||65 years old|
Retirement at the age of 63 – what to consider for future pensioners
Currently, the regular retirement age is still 65 years. However, the age limit for the standard old-age pension will be gradually raised to 2031 years by 67. Anyone born after 1964 can therefore become a regular pensioner at the age of 67. However, those who have been paying into the pension insurance scheme 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 it comes to retiring at the age of 63 – rentenbescheid24.de give tips and tricks.
Quitting work earlier – a dream for many. But starting retirement at 63 usually means less money for pensioners. © 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 to it or what requirements are still missing. After that, it should be examined whether deductions must 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. If you were born before 1953 and retire at 45 after 63 years of insurance, you do not have to pay any deductions.
Retirement at 63 usually means a lower pension
If you retire at the age of 63, you should keep in mind that less pension is likely to end up in your account. This is done for the simple reason that it has been paid into the pension fund for less time. If you work longer, you can significantly increase your pension. With the pension calculator of the German Pension Insurance, the pension should be calculated exactly. Although there are some subsidies for pensioners, the pension will probably almost always be lower than when they retire at regular retirement age.
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Evidence needed to apply for a pension at 63:
- Tax Identification Number
- Pension insurance number
- Identity card or birth certificate
- Proof of health and long-term care insurance
- International Account Number
If you want to work in addition to early retirement at 63, you must first tell your employer that you want to retire – then the health insurance contributions will change. Before that, it should be checked whether it is possible to retire at all in the current employment relationship or whether it is necessary to terminate the contract. Under certain circumstances, however, it can have advantages not to terminate: keyword company pension. Is it offered in your company? Finally, according to rentenbescheid24.de, income tax should be considered. It is better to pay in advance than to risk a high additional payment. By the way: Read here how to prepare for the end of life as a pensioner.