As of: February 11, 2024, 7:52 a.m
By: Carina Blumenroth
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Receive part of your pension and still continue to work - the partial pension model is supposed to do it.
What’s behind it and what employees should consider.
After long years of work, many employees think about retirement and pension.
If you want to retire earlier, you ask yourself how much money you need to have saved to do so.
With the partial pension model, you receive money from your pension entitlements on the one hand, and on the other hand you continue to receive money based on your work.
The
German pension insurance
informs that this is intended to make the transition into retirement easier.
What you should consider.
What exactly is a partial pension?
Partial pension can bring in income and pension.
You have to work out whether it makes sense for you.
© Bernd Leitner Photodesign/Panthermedia/Imago
Anyone who would like to claim a pension before reaching retirement age can do so with the so-called partial pension.
You can have part of your pension paid out, subject to two limits.
If you would like to claim the partial pension, it must be at least ten and a maximum of 99.99 percent of the full pension, informs the
German Pension Insurance
.
However, you have to expect deductions if you retire before the standard retirement age; this is no different with a partial pension.
The deductions amount to 0.3 percent per month brought forward; this is due on the part of the pension that you claim early, informs
finanztip.de
.
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Claiming a partial pension and still continuing to work – the conditions
This model can be useful for people who can retire without deductions but would like to continue working until they reach their standard retirement pension.
These are, for example, employees who have worked for 45 years this year and were born in 1960.
But severely disabled people can also use this option.
In this case, there are no deductions or lower pension entitlements, the
Institute for the Training of Works Councils
informs on its own website.
Additional earnings limit for early retirees tipped
Since the beginning of 2023, the additional earnings limit for early retirees has been lifted.
This means that early retirees can earn as much extra as they want without having to worry that their pension will be reduced.
People in the partial pension model also benefit from this.
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Is the partial pension model worth it?
You can't use the partial pension model without deductions?
Then you should carefully calculate whether it makes sense to use it.
If you make use of the option, you have the advantage of being entitled to sick pay in addition to your pension in the event of illness, informs
betriebsrat.de
.
Get advice from the German Pension Insurance as to whether the model is worthwhile for you.
You should also look at the tax aspects.
But it also makes sense to take a look at the employment contract and have a conversation with the boss.
Some contracts contain a clause stating that the employment relationship ends when a retirement pension is received.
You have to ask whether this only means the standard old-age pension.