As of: February 7, 2024, 10:52 a.m
By: Nico Reiter
Comments
Press
Split
More and more people are considering retiring before the legal retirement age.
This is how the deductions associated with early retirement are calculated.
Frankfurt – Many people are already looking forward to their retirement.
But the well-deserved retirement is being pushed further and further back.
From 2024, the statutory retirement age will increase to 66 for people born in 1958.
For younger age groups, the entry age continues to gradually increase in two-month increments.
For those born in 1964, the retirement age is 67.
But not everyone can imagine working that long.
A possible alternative is the so-called early retirement or “pension at 63”.
However, financial disadvantages due to discounts must be accepted.
Whether you start retirement earlier should be carefully considered.
You can use an online calculator to calculate how much money you will actually have left over at the end.
Early retirement – what deductions will have to be accepted in 2024?
Anyone who works until statutory retirement age receives the full pension without any deductions;
excluding taxes and insurance.
However, it is possible to retire early from the age of 63.
The prerequisite for this is that the recipients have paid contributions into the pension fund for at least 35 years.
However, in the case of early retirement, certain deductions are made from the pension amount each month.
If you retire earlier, deductions must be paid (symbolic image) © Niehoff/Imago
If you retire after 35 years of contributions, 0.3 percent of your pension is deducted for each month you retire earlier.
So if you stop working four years before the statutory retirement age, 14.4 percent of your pension will be lost through deductions, as an example from
Wirtschaftswoche
shows.
Insured people aged 50 and over have the option of making voluntary compensation payments in order to collect the full amount later.
However, the overall pension may be lower if contributions have been paid over a shorter period of time.
vintage |
Discounts for early retirement |
1964 |
14.4 percent |
1960 |
12.0 percent |
1956 |
10.8 (with protection of trust) / 9.6 percent (without protection of trust) |
For people who turn 63 next year, the normal retirement age is 66 years and 6 months because they were born in 1961.
This means that at the start of early retirement there would be a deduction of 12.6 percent.
For people who are one year younger and took early retirement the year before, the deduction was a maximum of 12.0 percent.
Exceptions – these groups of people can retire earlier without deductions
According to
Wirtschaftswoche,
however, there are also some exceptions where no deductions have to be made or the statutory retirement age is pushed down.
This means that long-term insured people who have paid into pension insurance for 45 years do not have to make any deductions if they retire earlier.
In addition, the pension depends on the year of birth without deductions.
For 1953 the limit was still 63 years.
It increases gradually.
Only for all those born after 1964, 67 is considered the normal retirement age.
My news
1 hour ago
Bakery sells them for 2.30 euros: “Brother, what kind of butter pretzel is that?” read
Recall at Rewe and Kaufland: Salmonella discovered in dessert read
Austrian woman wants to sell shoes - and is now almost 6,000 euros poorer
ZDF tests meat sausage: Inexpensive discounter product delights experts
RTL channel already switched off – potentially millions of viewers affected by TV change read
“I almost flew over”: Customer complains about the price and toppings of the rolls – the baker takes a stand
However, for those who have been insured for a particularly long time, stricter regulations apply with regard to the periods that are taken into account.
Periods in which no pension insurance contributions were paid, such as illness, pregnancy, unemployment or training, are not included in the 45 years.
At age 35, these are partially taken into account.
According to the German Pension Insurance,
some groups of people
generally have a lower retirement age.
For people with severe disabilities, the statutory retirement age is two years lower.
Instead of 67 years, the calculation here is 65 years.
From this age onwards, you can retire with a disability level of 50 percent without deductions.
Some chronic illnesses are also included.
Special regulations also apply to people who worked in mining.
For those born in 1964 or later, the statutory retirement age is 62.
If you were born earlier, the age is 60, provided the minimum insurance period is met.
Despite discounts, early retirement is becoming increasingly popular – around half of new pensioners are under 67
In recent years, early retirement has become increasingly popular in Germany.
According to the DRV,
around half of new pensioners have taken early retirement
in recent years .
To ensure that the transition goes smoothly, you should submit an application approximately three months before you wish to retire.
Information and advice centers can be used to determine which regulations apply to the respective person and whether it is worth leaving the world of work earlier.
So nothing stands in the way of a relaxed retirement.
The editor wrote this article and then used an AI language model for optimization at his own discretion. All information has been carefully checked. Find out more about our AI principles here.