Retirement at 63: Who can go into early retirement? - Germany's New Early Retirement Rules: What You Need to Know
Retiring early in Germany now comes with permanent deductions to the pension. The standard retirement age has risen to 67, and retiring early now incurs these deductions. However, retiring at 63 with 35 years of contributions is possible, but with a 14.4% cut.
The German pension insurance system calculates deductions based on the number of months before the standard retirement age. For every month of early retirement, the pension is reduced by 0.3% for life. This means retiring at 63 with 35 years of contributions results in a 14.4% cut, as there are 48 months between 63 and the standard retirement age of 67.
To determine eligibility for early retirement, check the pension statement from the German Pension Insurance. It outlines the contribution periods, which include employment, training, and care periods. These periods count towards the required 35 years of contributions. However, the 'retirement at 63' option without penalties no longer exists.
Pension deductions can be offset by purchasing additional pension points. A comprehensive advisory session with an expert from the German Pension Insurance can help with retirement planning and understanding these changes.
In summary, retiring early in Germany now incurs permanent deductions to the pension. Retiring at 63 with 35 years of contributions is possible, but with a 14.4% cut. It's crucial to check the pension statement and consider purchasing additional pension points to offset deductions. The German Pension Insurance offers advisory sessions to help navigate these changes.
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