As of: February 9, 2024, 5:18 a.m
By: Momir Takac
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Anyone who wants to retire after 35 years of contributions must expect deductions (symbolic image).
© IMAGO / Loop Images
In Germany, people can retire earlier after 35 years of contributions.
A step that should be carefully considered.
Because usually it doesn't work without deductions.
Update from February 23, 2023:
After an injury or major operation, many retirees need recovery.
Are there any age restrictions for pensioners when undergoing rehabilitation?
First report:
Hamburg - In Germany, people in the statutory pension insurance have two options for retiring earlier: Anyone who has paid into the pension fund for 45 years can generally retire earlier without any deductions.
The second option is the “old-age pension for long-term insured people”.
But with the second variant there are conditions that must be met in order to take the step into retirement.
Because: Anyone who chooses the second option of retiring early must be at least 63 years old (exceptions in the case of severe disability) and have 35 years of contributions.
According to the German Pension Insurance (DRV), the
following are taken into account
:
Contributions from employment or self-employment.
Voluntary contributions paid by you alone.
Child-rearing periods for the first 2.5 or 3 years of life.
Months of non-commercial home care.
Months from a pension settlement in the event of a divorce.
Contributions for mini-jobs that you paid together with your employer.
Months from pension splitting between spouses or registered life partners.
Replacement times: for example, months of political persecution in the GDR.
Credit periods: Times in which you cannot pay pension insurance contributions for personal reasons, for example due to illness, pregnancy, unemployment, school training and studies.
Times taken into account: for example, times when raising a child who is not yet ten years old.
Pension after 35 years of contributions: Those born after 1964 have the highest losses
While you can retire without any deductions after 45 years of work, this can be quite expensive for people who want to stop after 35 years, writes Stiftung
Warentest
.
Only people born between 1949 and 1963 can retire without deductions before their 67th birthday.
Meanwhile, anyone born after 1964 has to accept financial losses, which is because the retirement age in Germany is gradually being raised.
Depending on when you stop working early and retire, this can be up to 14.4 percent lower - for the rest of your life.
For every month you retire before the standard retirement age, 0.3 percentage points are deducted.
However, with a few tips and tricks, consumers can retire sooner.
For pensions after 35 years of contributions, an expert recommends advice before applying
An example: For an employee born in 1970, the retirement age is 67.
If he decides to retire at 63 after 35 years of contributions, he will have to accept four more years of deductions.
48 months times 0.3 equals 14.4 percent.
If he wants to retire at the age of 64, 10.8 percent will be deducted.
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Ultimately, every employee has to decide for themselves whether it makes sense to retire earlier and risk deductions.
Before applying, everyone should seek advice, recommends expert Silke Pottin from the DRV Bund in Berlin.
Retire early: Early retirees have to weigh up between more free time and less money
Ralf Scherfling from the North Rhine-Westphalia Consumer Center in Düsseldorf advises looking at the needs.
“Do I want to travel, enjoy the garden, make larger purchases or earn extra money alongside my pension?” the consumer advocate mentions a few points to the
German Press Agency
.
The advantages of earlier retirement are obvious: If you stop working early, you not only protect your health, but also have more time for hobbies, family and to realize projects or dreams.
But can you afford it?
(mt)