Early retirement?
For many this is tempting.
What requirements must be met, what needs to be observed.
Key facts at a glance.
Munich - traveling, spending time with the family or just doing nothing.
Many people have a clear idea of how they want to spend their retirement.
However, there are legal requirements for the pension that regulate, among other things, the length of employment and the retirement age.
Retirement at 63 - when is early retirement possible?
The general rule is: Anyone who has made 35 years of contributions can retire at the age of 63. The pension amount is a little smaller, however. The “old-age pension for long-term insured persons” is reduced by 0.3 percentage points for each month that the insured person retires earlier. If an early retiree retires two years before the regular retirement age, he will receive 7.2 percent less from the pension fund.
However, a pension from the age of 63 is also possible without any deductions.
For those insured who have 45 years of contribution, the “old-age pension for those with particularly long-term insurance” applies.
Those in employment who were born before 1953 and who can look back on a long career history can retire at the age of 63.
For this purpose, retirees must submit an application to the Deutsche Rentenversicherung.
The regulation has been in place since 2014.
Pension at 63: will the corona crisis affect future pension contributions?
The economy suffered during the corona pandemic.
The economic crisis also left its mark on the workforce: many workers were sent on short-time work or even lost their jobs.
But what effects does this have on future pensions?
Short-time work has only a minor influence on the amount of pensions.
The basis is 80 percent of the salary that is lost due to short-time work.
The contributions to the pension insurance are increased accordingly.
The situation is similar with unemployment.
If those in gainful employment receive unemployment benefit I, contributions based on the 80 percent of the salary with which the pension contributions were calculated are paid into the insurance.
Workers should be especially careful with part-time jobs.
With a “half” position, only half of the contributions flow into the pension fund.
Although the years in part-time count as contribution years, the pension amount is lower.
Early retirement for the severely disabled
People with a degree of disability of at least 50 can also retire without advance payments.
From those born in 1964, the retirement age increases to 65. Severely handicapped persons must have at least 35 years of contributions in order to retire earlier.
However, there are also times when it was not possible to pay in for personal reasons.
This includes studies, illness or pregnancy, for example.
Early retirement: Compensate payments on account - more pension in retirement
For employees who want to retire before their 65th year of retirement, there is a possibility to cushion discounts. Before retirement, the pension can be improved through private payments. Particular caution is required with the double burden of pensions. In ongoing processes, the Federal Fiscal Court decides whether the tax authorities should ask pensioners to pay up twice - and thus possibly breach the constitution. If the verdict is in favor of the plaintiffs, pensioners should be happy about the reimbursement of taxes paid too much. (
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