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Restrictions on pensions at 63: “Deduction-free pension” only for one group

2024-02-02T18:21:21.583Z

Highlights: Restrictions on pensions at 63: “Deduction-free pension” only for one group. In 2023, around 300,000 people, more than ever before, applied to the German Pension Insurance to retire early from working life as part of the “pension at 63”. “Are they really 'the wrong people' who can retire a little earlier after 45 years?” asked the Social Association of Germany (SoVD) “Instead of denying people a slightly better pension, efforts should be made to ensure that as many people as possible also benefit,” demanded SoVD chairwoman Michaela Engelmeier.



As of: February 2, 2024, 7:09 p.m

By: Mark Stoffers

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Retirement at 63 is a thorn in the side of economists.

Now an economist is calling for restrictions on early retirement, which is upsetting an association.

Bochum – Pensions continue to be at the center of the public debate.

After Robert Habeck's new pension plan to pay some pensioners more money and Hubertus Heil's announcement of a new pension package, the economist Martin Werding has now commented on retirement at 63, apart from Habeck's ideas on pensions, citizens' money and migration.

In view of the renewed increase in the number of applications, this insists on restrictions on the early retirement option for long-term employees.

Restrictions on pensions at 63: “Deduction-free pension” only for low earners

“For example, an early pension without deductions could then only be available to insured people who have earned less than 60 percent of the average salary of all insured people per contribution year,” Werding only called for a pension at 63 for low earners in the newspapers of the Funke media group on Wednesday.

Economist Prof. Martin Werding wants restrictions on “retirement at 63”.

© IMAGO

“The probability that they have carried out particularly stressful activities and that their health is at their limit before reaching the standard retirement age then increases significantly,” said the economics professor at the Ruhr University in Bochum, explaining his proposal to retire at 63 only for low earners.

In his opinion, those currently receiving early pensions without deductions are in above-average health and are often still urgently needed as skilled workers.

Retire earlier: More Germans than ever have applied for a “pension at 63”.

According to the report, in 2023, around 300,000 people, more than ever before, applied to the German Pension Insurance (DRV) to retire early from working life as part of the “pension at 63”.

The DRV explained that a good 30 percent of all pensioners can now be assigned to this group.

With the “pension at 63” option, those who have been insured for a long time can retire without any deductions after 45 years of insurance.

However, the year 63 refers to the introduction of this option.

Due to the gradual increase in the standard retirement age from 65 to 67, the entry age for early retirement is also increasing.

According to the DRV, in 2022 this was already around 64.1 years for those who had been insured for a particularly long time.

Werding's push for retirement at 63: Social association expresses criticism

Last year, the end of retirement at 63 had already caused dissatisfaction, as in some eyes a late start meant “an early death”.

But Werding's push for “pension at 63” is met with rejection, especially by the Social Association of Germany (SoVD).

“Are they really 'the wrong people' who can retire a little earlier after 45 years?” asked the association chairwoman Michaela Engelmeier, who recently campaigned again for an inflation bonus for pensioners and cuts for pensioners in the pension plans CDU strictly rejects...

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She pointed out that reaching 45 years of contributions is subject to very strict requirements.

“Instead of denying these people a slightly earlier retirement, efforts should be made to ensure that as many people as possible also benefit from a pension without deductions and that people can work healthily until they retire,” demanded Engelmeier with regard to Werding’s proposal for early retirement of low-income earners.

(

with material from Afp

)

Source: merkur

All news articles on 2024-02-02

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