As of: February 1, 2024, 12:50 p.m
By: Lisa Mayerhofer
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Pension and work: This can be financially worthwhile for seniors.
(Symbolic photo) © IMAGO/Dwi Anoraganingrum
Pension and work: This can be financially worthwhile for seniors.
However, many are unsure what this means for their employment relationship.
An overview.
Munich – It has become lucrative to receive a pension while continuing to work at the same time.
Because work no longer has a negative impact on pension payments.
“Since the additional income limits for old-age pensioners have been abolished, unlimited additional income has been possible without a pension reduction,” says Jan Scharpenberg from the advice portal
Finanztip
.
However, many seniors are unsure what this means for their employment relationship.
For whom is the combination of pension and work worthwhile?
If you want to receive a pension and continue working, you should take a look at your employment contract beforehand.
Some contracts contain clauses that provide for the termination of the employment relationship as soon as the employee receives a pension.
In such cases you should definitely speak to your employer.
In addition, it is not always worthwhile to receive an early pension while working.
For example, if you have to accept discounts on your early pension, you should carefully calculate again which route is best or affordable in your individual case.
However, those who have already accumulated 45 years of waiting usually do not have to accept any deductions and can therefore count on more money in old age.
Work and early retirement: how does it work?
Example: An employee who has already worked for 45 years and has therefore fulfilled his professional years until retirement could retire at 65.
That's two years before reaching regular retirement age.
He can now receive both wages and a pension from the German pension insurance.
To do this, he must apply for a 99.99 percent partial pension from the German pension insurance company.
For example, if he receives 2,000 euros gross in his regular pension, he would have to forego around 20 cents per month in this model.
Otherwise he would already be in full retirement.
The special thing about this model is that those who use it continue to have full social insurance until they reach the standard retirement age.
They also receive more money.
Can my boss fire me because I'm retiring?
Termination due to entitlement to a pension is prohibited.
The Sixth Social Code (SGB) states: “The insured person’s entitlement to a pension due to old age is not to be viewed as a reason that can lead to the termination of an employment relationship by the employer in accordance with the Dismissal Protection Act” (§ 41 SGB VI).
Caution: However, it may be that your employment relationship ends automatically when you receive your pension due to a fixed-term contract.
That's why you should read your employment contract carefully again.
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Are there any disadvantages to dismissal and social selection?
There are actually disadvantages, explains
ihr-sorge.de
.
But that is not necessarily due to the pension application.
The disadvantage arises if you even meet the eligibility requirements for an early retirement pension - even if you haven't applied for anything yet.
The Federal Labor Court (BAG) has decided that proximity to or receipt of a pension can result in “minus points” when selecting social benefits before dismissals (ref. 6 AZR 31/22).
Even being “close to retirement” can lead to disadvantages when it comes to social selection.
However, this only applies if the old-age pension is “free of deductions”, according to the portal.
Can I hide from my employer that I am receiving a pension?
Pension consultant Markus Vogt advises against trying this
in
Wirtschaftswoche .
It is likely that the employer will find out about it.
Although the employer does not receive any notification when an employee applies for a pension, it can still indirectly get wind of the parallel payment: the German pension insurance automatically asks the employer about the salary that was received before the pension application.
Every HR manager then knows: it can only be about applying for a pension.
Vogt believes that it will become increasingly common for “employees over 63 to also receive an early pension at the same time.
“Especially in times of a shortage of skilled workers, employers should no longer draw negative conclusions from this, for example with regard to motivation,” Vogt told the magazine.