A dismissal shortly before retirement is a particularly hard blow. Whereby the definition of "short" is relative. The standard retirement age is 67 for those born in 1964 or later. However, when it comes to finding a new job, you have a worse chance than younger employees. The Federal Employment Agency takes this into account in two ways: First, jobseekers over 55 are no longer included in unemployment statistics. Secondly, you can benefit from an extended period of unemployment benefits.
The entitlement to unemployment benefit
To be eligible for unemployment benefits, you must meet the following criteria:
You must have been employed for at least 12 months in the last 24 months subject to social security contributions.
Their working hours are less than 15 hours per month. It does not matter on which days you perform work.
You report your unemployment in person to your competent employment agency.
The amount of your unemployment benefit is based on your previous average net income. You will receive between 60 and 67 percent of this amount. To calculate your personal entitlement exactly, you can find a tool on the website of the Federal Employment Agency.
The duration of unemployment benefit
The period for which unemployment benefits are paid varies Between six months and two years. It is determined on the basis of fixed criteria such as the duration of employment subject to social insurance contributions, previous unemployment and your age.
In the event of termination of employment after the age of 58. If you are over 60, you are entitled to the maximum payment period of two years. You must have been employed for at least four years within the last five years with compulsory social insurance coverage. The exact duration of unemployment benefits in connection with age and length of employment can be found in this table.
There is an innovation in unemployment benefits since summer 2019, which is quite positive for ALG2 recipients: When unemployment benefit recipients repeatedly reject an offered job, only a 3-week suspension occurs instead of a 6- or 12-week suspension.
How to bridge the time to retirement?
Advanced-age job seekers often face unique challenges in the application process. Although they have a wealth of professional experience, employers often shy away from hiring them.
For this reason, it is relevant to know under which conditions you can be prevented from receiving Hartz 4 shortly before retirement. By working in the meantime, you can postpone the end point of your unemployment benefit receipt. In return, you deregister with the employment agency as soon as you have found a job where you work more than 15 hours per month. This has the advantage that your earnings are not offset against unemployment benefits. It does not matter whether you perform the work within a few days or spread over a whole month. Your total period of receipt of unemployment benefit will thus be interrupted again and again. So, in total, you will still receive it paid on 24 months.
The employment agency does not impose any limits on the type of work you can do. You can pursue regular employment on a full-time or part-time basis as well as a mini-job. Beyond that the way is open to you into the independent one. In this case, however, note the special features of health insurance as a pensioner. You find a clear treatment to this topic on this side in the text "Self-employed as a pensioner – which is to be considered with the health insurance".