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Pension: early retirement - this is how it works

2021-10-26T14:01:48.462Z


Those who want to retire earlier should be careful. When entering early retirement there are a few things to consider that should be clarified at an early stage. An overview.


Those who want to retire earlier should be careful.

When entering early retirement there are a few things to consider that should be clarified at an early stage.

An overview.

Berlin - The retirement age depends on various factors.

If you want to leave earlier, you should allow enough time to clarify everything.

In addition to the entry age, the insurance years in particular have a major influence on the final pension amount.

And if you want to leave as early as possible with as few discounts as possible, you should inform yourself well in advance of the planned start of your retirement.

Pension: The entry age depends on the year of birth

At the beginning, a distinction must be made between how long someone has been paying into the pension insurance.

Here there is the so-called pension for “particularly long-term insured persons” and for “long-term insured persons”.

The “particularly long-term insured” include people who have worked for 45 years and paid into the insurance.

For the other group, the limit of at least 35 years as a contributor is decisive.

For both groups, the retirement age will be raised in two-month steps until 2029.

For a better understanding, the

Stiftung Warentest has created

an overview.

This shows which age groups can retire and when.

Year of birth

Age limit for long-term insured persons (45 years)

Age limit for long-term insured persons (35 years)

1957

63 + 10 months

65 + 10 months

1958

64

66

1959

64 + 2 months

66 + 2 months

1960

64 + 4 months

66 + 4 months

1961

64 + 6 months

66 + 6 months

1962

64 + 8 months

66 + 8 months

1963

64 + 10 months

66 + 10 months

From 1964

65

67

For everyone born in 1964 or higher, the entry age is 65 or 67 years.

The age limits listed in the table apply to retirement without a deduction.

This means that you will then receive the full pension that you have earned with your pension points in the course of your working life.

Anyone who has been insured for many years and would like to retire earlier (possible from the age of 63) has to accept deductions on their pension.

0.3 percent of the actual pension is deducted for each month by which you retire earlier.

As a particularly long-term insured person, you cannot receive your pension earlier - not even with deductions.

Example:

Max Mustermann was born in 1958 and would receive the average salary set by the German Pension Insurance (DRV) in western Germany (EUR 41,541) for 40 years if he worked until the statutory retirement age of 66 years. According to the current status, he would then be entitled to a good 1,367 euros at retirement.

(This is a simplified calculation example, as nobody receives exactly the specified average salary for the duration of their working life.)

If he wanted to retire two years earlier, i.e. at 64, he would have to accept discounts.

The pension to which he is entitled would first and foremost be reduced by two pension points and would still be a good 1,299 euros.

7.2 percent (0.3 x 24 months) would then be deducted from this.

That means a monthly minus of almost 93.53 euros, after which he would be entitled to 1,205.47 euros per month in the end.

His pension entitlement would have been reduced by a total of EUR 161.53 per month if he retired two years early.

Also important: The discount (in the example 161.53 euros) remains in place until the end of life.

The reduction does not only apply until the actual retirement age is reached, but forever.

Early retirement: Special payments can offset discounts

However, if you plan in good time and know that you want to retire earlier, you can make provisions.

With a special payment to the statutory pension insurance, deductions can be fully or partially offset.

The amount of the special payment depends on the remaining working time and the time that you go earlier.

The Deutsche Rentenversicherung can provide information about the amount that would be necessary to compensate for discounts.

Individual advice is very important here, as it is not always worth making the extra payment.

When it comes to pensions, however, one thing applies to everyone: inform early on.

Because if you get information in good time, you can still get a lot out of it.

Because the special payments do not have to be made all at once, but can also be spread over several years.

And if you start paying particularly early, you can still get a lot back by deducting taxes.

In summary, it can be said that it is worthwhile to take care of security in old age long before you plan to retire.

In doing so, private pension insurance and other investment products should by no means be disregarded.

(ph)

Source: merkur

All news articles on 2021-10-26

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