Boom in retirement at 63: How it works, what requirements have to be met

Created: 03/22/2022, 10:41 am

By: Philip Fisher

Seniors on a park bench.

Retirement with no deductions at 63 is becoming increasingly popular.

© Frank May/dpa

More and more contributors are claiming their pension at age 63. 2020 was a new record year with 260,932 claims.

Here you can find out the most important things about retirement at 63.

• More than half of those with statutory pension insurance take early retirement.

• Since July 1, 2014, anyone who has paid into the

  pension insurance

  for 45 years can apply for a pension from the age of 63.

• If you apply for a pension

  at the age of 63 after less than 45 years

  , you have to accept deductions.

Munich - Early

walking and still making ends meet is what many people dream of.

at 63 is becoming more popular every year

.

In 2020, 260,932 applications for

were received.

1.6 million seniors in Germany are currently drawing their

Retirement at 63 is becoming increasingly popular among Germans

Anyone who has paid into the

for several decades can exercise their right to a

use at 63.

However, contributors must have contributed 35 or even 45 years to retire earlier.

without deductions before their 65th birthday

.

If you were born in 1964 or later, this is no longer possible, then the retirement age without deductions is 65 years.

But if you only pay in for 35 years, you have to expect high permanent discounts.

In some cases, the deduction can be as high as 14.4 percent.

The following applies: for each month that the contributor

early , the amount is permanently reduced by 0.3 percent.

In 2019, 32.7% of pensioners and 36% of pensioners paid deductions.

With many

, however, it is possible to compensate for the deductions in whole or in part with special payments.

People with severe disabilities can

before the age of 63 , but only with deductions.

Deduction-free pension at 63 only possible from 45 years of contributions

Those who apply for their

at age 63 after 45 years of contributions can retire without deductions.

In practice, however, only people born before 1953 can claim this benefit, which has been in effect since 2014.

Unemployment may also be calculated in addition to the contribution years, insofar as the employment office has paid unemployment benefit 1.

In addition, company training, child-rearing periods, caring for relatives, short-time work benefits, as well as military and civilian service count as contribution years.

According to the Federal Ministry of Labor and Social Affairs,

is the main source of income for 63.0 percent of those over 65.

Company old-age insurance accounts for only around 8 percent and only 7.6 percent secure themselves privately in old age.

The situation is particularly precarious for insured persons who have paid

into the

The average

for 25 to 35 years of contributions is 777 euros, for those with 15 to less than 25 years of contributions it is only an average of 489 euros.

Women, in particular, often still receive a significantly lower

than men because of their employment history.

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