Retirement: Retire at 63?

You have to reckon with these deductions

Created: 04/30/2022, 07:45

By: Patricia Huber

If you want to retire earlier, you have to expect deductions in most cases.

How much the pension payment is reduced depends on the year of birth.

The overview.

Munich – Entry age, insurance years, deductions: the pension is a complicated topic.

The retirement age in particular is a source of confusion.

The same age limit does not apply to every birth year.

If you were born in 1964 or later, the standard retirement age is 67, and those who want to leave earlier must expect deductions, i.e. a reduction in their pension.

Pension: This is how much is deducted per month for early retirement

For each month that you retire earlier, 0.3 percent is deducted from your later pension payments.

The later the year of birth, the greater the deductions when you retire at 63. You can read about who has to give up what percentage of their pension in the following table.

Important to know: The deduction remains permanent, i.e. the entire retirement period.

So you don't get your full pension as soon as you reach the statutory retirement age.

Pension: Other rules apply to people who have been insured for a particularly long time

In addition: If you were born before 1953 and have paid into the German pension insurance for at least 45 years, you can retire at the age of 63 without any deductions.

For all following age groups, the age increases according to the table.

Everyone born in 1964 or later, despite having 45 years of insurance, can only retire at the age of 65 at the earliest.

This is the pension for “particularly long-term insured”.

Anyone who can only show up to 35 years of insurance is considered to be “insured for many years” and must expect the above-mentioned deductions if the pension begins at the age of 63.

So if you are aiming for an earlier retirement, you should definitely seek advice at an early stage.

The German pension insurance also offers support here.