Hartz IV: Compulsory pension at 63 – High deductions threaten
Created: 05/09/2022, 15:42
By: Lisa Mayerhofer
Hartz IV recipients have to accept major financial losses in the event of forced retirement from the age of 63.
(symbol photo) © Frank Rumpenhorst/dpa
Hartz IV recipients have to accept large financial losses in the event of compulsory retirement.
But the regulation does not apply to all cases.
Berlin – Food and energy prices have been rising for months – and there is no end in sight.
Hartz IV recipients in particular are suffering from the increased cost of living: the last increase at the beginning of the year was 0.7 percent, while inflation is more than seven percent.
"More and more people have to make sure that they can still buy enough to eat at the end of the month," said the socio-political Diakonie board member, Maria Loheide, of the Augsburger Allgemeine.
Compulsory pension from age 63 possible for Hartz IV recipients
In such a situation, what is a dream for others can become a nightmare scenario for older Hartz IV recipients: retirement at 63. In the form of forced retirement.
Because those affected can face deductions of up to 14 percent - and thus an increased risk of poverty in old age.
The reason:
Early retirement means that the actual pension is deducted by 0.3 percent per month of early use.
With a standard retirement age of 67 years, the reduction is up to 14.4 percent.
These are decent deductions that have to be accepted until the end of life.
Compulsory pension and Hartz IV: How much money is it specifically?
A sample calculation by the expert Enzo Weber, head of the research department "Forecasts and macroeconomic analyses" at the Nuremberg Institute for Labor Market and Occupational Research, shows in the Süddeutsche Zeitung
clearly what amounts are at stake: After 35 years of gainful employment, a person actually has an above-average pension of 1441 euros.
However, since she becomes unemployed shortly before her 63rd birthday, she is threatened with an early compulsory pension.
With deductions of 14.4 percent then only 1234 euros remain;
she loses more than 200 euros a month.
For comparison:
If the same person worked for only 34 years, but were not subject to mandatory retirement, they would still receive a pension of 1,400 euros.
It is therefore usually worthwhile for those affected to continue to receive Hartz IV up to the standard retirement age if they can no longer find a job - in this case there is no risk of pension deductions.
In addition, the ALG II should be higher than the actual pension for quite a few of those affected.
Hartz IV: Who is threatened with a compulsory pension?
In principle, the job center can ask every Hartz IV recipient over the age of 63 to apply for a pension.
If those affected do not comply, the job center may even accept the application.
The forced retirement can then be carried out.
This is justified by the fact that Hartz IV recipients are legally obliged to apply for other social benefits if they are able to and these are considered "priority".
This is the case with retirement.
But there are also numerous exceptions that are exempt from this rule.
With exception of:
everyone who would still be dependent on Hartz IV or basic security in the event of retirement
People who can show that they will be able to start a new job soon.
everyone who would receive an old-age pension without deductions in a few months anyway.
In principle, those who receive top-ups and recipients of ALG I are also excluded from forced retirement.
Retirement at 63: How can I avoid compulsory retirement?
Those affected are usually concerned with amounts that they urgently need.
It is therefore worth filing an objection and submitting a hardship application.
ver.di advises going on the offensive: “Anyone who does not want to accept compulsory retirement from the job center should not wait until the job center submits the pension application.
Rather, an objection should already be lodged against the request from the job center,” advises the union.
Those affected should also apply to the responsible social court for “provisional legal protection”.
(lma)
