The Limited Times

Now you can see non-English news...

Retirement at 63: Has the federal government miscalculated?

2022-02-28T15:49:04.905Z


Retirement at 63: Has the federal government miscalculated? Created: 02/28/2022, 16:43 By: Sophia Lother Retire earlier: It is possible for many to retire as early as 63 years of age. (Iconic image) © Matthias Balk/dpa More and more Germans are retiring at 63. Early retirement can only be claimed by those who have been insured for a particularly long time. Is that going to be a problem now? F


Retirement at 63: Has the federal government miscalculated?

Created: 02/28/2022, 16:43

By: Sophia Lother

Retire earlier: It is possible for many to retire as early as 63 years of age.

(Iconic image) © Matthias Balk/dpa

More and more Germans are retiring at 63.

Early retirement can only be claimed by those who have been insured for a particularly long time.

Is that going to be a problem now?

Frankfurt – Retirement* at 63 is an enticing prospect for many employees.

With it, long-term insured persons in particular can retire earlier and spend their time with family, friends or their favorite hobbies.

Anyone who has been insured in the statutory pension insurance for at least 45 years can “in principle retire earlier”, according to the German pension insurance.

Since July 2014, insured persons born before 1953 have been able to retire at 63 without any deductions.

Since then, the retirement age* has been gradually raised.

However, according to media reports, the federal government seems to have miscalculated.

Retire at 63: Has the government miscalculated the concept of early retirement?

As early as 2019, there were indications that more people than expected wanted to retire at 63*.

The draft law in 2014 said at the time: "It is assumed that there will be around 200,000 cases per year".

However, in 2018, for example, around 240,000 pensioners took advantage of this offer.

The following year the number was also higher.

As the Bild newspaper now reports, a total of 254,337 applications for a pension at the age of 63 were approved in 2021.

This means another increase of 2.5 percent with regard to the following year.

Overall, there are around 340,000 more people who have taken advantage of the pension offer for particularly long-term insured since 2014 than the federal government had planned.

According to the newspaper, the costs are expected to rise to over three billion euros a month for the first time in the spring.

Retirement at 63: Entry age is gradually being raised

It is not yet known how the new federal government intends to meet the apparently continuously rising costs.

In 2009, it was decided to raise the retirement age that had applied until then.

If it was 65 years before, the limit will now be gradually raised to 67 years by 2029.

The Federal Minister of Labor at the time, Franz Müntefering (SPD), justified the procedure by saying that this made sense and was fair to the generations, since more and more people would draw their pension for longer and start working later.

An overview of the retirement age by year of birth:

Year of birth

retirement age

retirement from

1955

65 years and 9 months

2020

1956

65 years and 10 months

2021

1957

65 years and 11 months

2022

1958

66 years

2024

1959

66 years and 2 months

2025

1960

66 years and 4 months

2026

1961

66 years and 6 months

2027

1962

66 years and 8 months

2028

1963

66 years and 10 months

2029

from 1964

67 years

2031

Retirement at 63: What are the requirements?

For the pension at 63 for those who have been insured for a particularly long time, the focus is on having reached the minimum age and that the waiting period of 45 years must be fulfilled.

According to the Federal Ministry of Labor, “primarily contribution periods from insured employment or activity, care and child-rearing” are credited to this.

The Ministry has published a list of the times that count towards the required 45 years:

  • Times with compulsory contributions from employment or self-employment

  • Times of compulsory insurance and minor employment such as a mini job with your own contribution payment

  • Times in military or civilian service

  • Times when relatives were not cared for on a commercial basis

  • Periods of raising children (until the child is ten years old)

  • Periods of unemployment, partial unemployment or in which professional training services were used (the last two years before the start of retirement are excluded here, unless the unemployment is due to insolvency or the cessation of business by the employer)

  • Times with sick pay or when transitional allowance, short-time work allowance, bad weather allowance, winter allowance, or insolvency allowance (employer's inability to pay) was received

  • Periods of voluntary insurance also play a role here if there are at least 18 years of compulsory contributions from employment or self-employment (exception: the last two years before the start of retirement if there are periods of credit due to unemployment at the same time)

  • replacement times

In 2022, pensioners will again be faced with various changes*.

In addition to a pension increase, the taxation of the pension* also increases in some cases.

(slo)

*fr.de is an offer from IPPEN.MEDIA.

Source: merkur

All news articles on 2022-02-28

You may like

Trends 24h

News/Politics 2024-03-27T16:45:54.081Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.