The nine biggest myths about retirement

Created: 2022-06-09 10:34 am

By: Alina Schroeder

Persistent myths and misconceptions surround pensions.

But what is behind it?

We show you what you should know.

1 / 10Is the pension automatic?

How long do you have to have worked at least?

And does it even have to be taxed?

These are just a few of the many questions about retirement provision that we want to answer for you below.

We also want to clear up certain myths.

© Frank Hoermann/Sven Simon/Imago

2 / 10Myth 1: Retirement comes automatically.

This is a mistake.

All pensions from the statutory pension insurance must be applied for in writing in good time.

© Imago

3 / 10Myth 2: The pension does not have to be taxed.

That is not correct either.

Pensions are generally subject to income tax or wage tax.

However, the money is currently not fully taxed.

The percentage depends on when you retire.

© Joseffson/Imago

4 / 10Myth 3: A rehabilitation stay reduces the pension.

No, quite the opposite: During rehabilitation, the compulsory contributions are paid by the pension insurance at 80 percent of the previous gross salary, which increases the subsequent pension entitlement.

© Zinkevych/Imago

5 / 10Myth 4: There is only a pension after you have worked for at least 15 years.

That's wrong.

The minimum insurance period for the standard old-age pension is five years.

© Daniel Naupold/dpa

6 / 10Myth 5: You can earn an unlimited amount of money in addition to your pension.

That's not true, because there is already a limit.

Anyone who retires earlier or is unable to work can earn up to 6,300 euros.

If you earn more, you may lose some or all of your pension entitlement.

© Imago

7 / 10Myth 6: After 45 years, you can retire at 63.

That is only partly true.

Anyone who has been insured for a particularly long time, i.e. around 45 years, can generally retire earlier.

The entry age, however, shifts backwards depending on the year of birth.

© ME Lukashevich/Imago

8 / 10Myth 7: Only women receive the widow's pension.

In any case, this is a mistake.

Since 1986, both women and men have had equal rights in the pension insurance system.

© Jens Kalaene/dpa

9 / 10Myth 8: The amount of the pension is mainly made up of the last years of work.

That too is wrong.

The pension amount is calculated from the entire insurance life.

© Imago

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10 / 10Myth 9: Those who take care of the children for a long time have a lower pension entitlement.

That is not true.

Despite everything, employees on parental leave have a claim, even though they work less or not at all for a while.

© Michael Gstettenbauer/Imago