Retirement at 63: These conditions must be met
Pensions abroad: The most important information
Retirees can enjoy their retirement worldwide. But this may lead to cuts in pension contributions or changes in taxation.
If you want to retire early at 63 without deductions, you have to meet a number of requirements. Read here which ones are crucial.
- The pension at 63 is often discussed, but only very few can take advantage of it
- But for most people, early retirement is only possible with deductions
- However, there are exceptions: We show who can retire as early as 63
As much as possible of the Retirement For many people, enjoying retirement also means retiring as early as possible. But those who want to leave the profession before reaching the standard retirement age must consider a few things. Who at all Early retirement To find out how much money she can apply for and who will have to expect which deductions, read the following overview.
Read here: Since 2015, 1.74 million applications have been made for a pension at 63. That’s more than the federal government has budgeted for.
What types of early retirement are there?
The term "early retirement in itself is somewhat misleading. Often, early retirement means "retirement at 63" which, in civil servant terms, is referred to as "early retirement"Retirement pension for those insured for a particularly long time is used to describe. But there are also other conditions under which one can retire earlier than the standard age. However, this is then mostly a Reduced earning capacity pension. Read here: These professions retire particularly early.
In addition, there are certain Occupational groups such as employees in the fire department or in mining, who have a lower retirement age due to a high workload. Read here: Pension increase expected for 2022.
How does the "Pension at 63" work??
The "pension at 63 actually only works without deductions for people who have 1953 were born. For the cohorts after that, the retirement age will be raised gradually from 65 to 67. This limit will then apply to everyone born in 1964 or later. For them, it would then correctly have to be "Retirement at 65" hot. Read here: How to fulfill your dream of an earlier pension.
Whether with 63 or 65 second requirement to be able to retire early without deductions is the number of Insurance years. Those who have been working for 45 years and are thus "particularly long-serving who is insured for old age pension gets the full old age pension. For the number of years of insurance, not only each month in which one has worked regularly counts. It counts, for example, also months in which one voluntarily in the Pension insurance has paid in. Furthermore, the following can be credited:
- Voluntary social year, military and civilian service
- Child-raising period up to the age of ten
- Care time of a relative
- Periods of unemployment or periods during which sickness benefits were paid are also taken into account under certain conditions
How does the early pension with deductions work??
There is also the possibility of taking early retirement if you have only paid into the pension scheme for 35 years. But then you "only" apply as "insured for many years and must expect deductions. For each month that one before Standard age limit retires, the pension is reduced by 0.3 percent. Overall, the maximum Reduction but capped at 14.4 percent.
Pension is further reduced in case of early retirement in addition to percentage reductions. Because in the months missing up to the regular age limit, then no obligation contribution is paid more into the old age pension insurance. The increase in the pension due to these contributions therefore does not take place.
The Deductions remain valid for the entire pension period and are not upgraded when the contributor reaches the standard retirement age.
- Read also:How to supplement your pension with a part-time job – you must pay attention to these points
However, there is the possibility to fully or partially offset these deductions by means of voluntary payments in advance. For example, with a gross pension of 800 euros per month in the old federal states and one year of early retirement, the pension reduction would be 3.6 percent or 28.80 euros.
To the full Compensation this reduction, an amount of around 6750 euros would have to be paid into the pension insurance scheme. Such compensation payments can be made from the 50. Year of life To be paid.
- Also interesting:How to supplement your statutory pension
How to apply for early retirement?
In general, every statutory pension must be applied for, so that the payment begins. If the requirements for an early retirement pension are met, the German pension insurance (DRV) to submit the application at least three months before the planned start of the pension.
Pension in Germany – Facts and History
- system: The statutory pension works according to the equivalence and solidarity principle.
- Types of pension: There is still the Basic pension, pension for reduced earning capacity and survivor’s pension.
- Exceptions: A large majority of the self-employed and freelancers are exempt from compulsory insurance.
- Funding: The statutory pension in Germany is basically pay-as-you-go.
- problems: The problems of underfunding arise mainly from the increasingly aging population in Germany.
- Three pillars: The Retirement provision in Germany is based on three pillars. This includes statutory, company and private pension schemes.
- origin: She was born on 22. July 1889 under Imperial Chancellor Otto von Bismarck officially introduced.
For this in any case the Pension insurance number, an identity card or birth certificate, tax identification number, proof of health and long-term care insurance and an international account number are required. In addition, there are other individual Proof, about which the DRV informs on its homepage. (jas with dpa)