PressSplit
In Germany, early retirement can result in significant reductions in pension benefits. These can vary greatly depending on the year of birth. This is something senior citizens have to expect in old age.
Some people want to retire as early as possible. But it’s not that easy in Germany. There are statutory retirement ages that can vary greatly depending on the year of birth. Early retirement also entails possible reductions that seniors have to accept if they want to retire early. But how high are these reductions?
Early retirement: retirees in Germany have to expect these deductions
We often hear and read that pensions in Germany are not particularly high. And studies actually show that Germany does not fare particularly well in comparison to other European countries, as echo24.de already reported. In order to compensate for the comparatively “poor” pension in Germany, contributions are continually being raised. The general pension and the disability pension were only adjusted in July. A table shows how much more money senior citizens will now receive.
In Germany, not only are pensions regularly adjusted, but the retirement age is also raised. In 2007, the retirement age was set at 67. It is therefore no wonder that many senior citizens want to retire a little earlier. This is basically possible if prospective pensioners accept a reduction of 0.3 percent per month. This would be 3.6 percent per year, with a maximum of 14.4 percent in total.
Early retirement with reductions – table shows: This is how much less money seniors would receive
How long do pensioners have to accept the reduction? Does the reduction cease when the standard retirement age is reached? According to the DRV, the reduction also applies after the standard retirement age is reached, and if necessary also in the case of a later survivor’s pension. What reductions in euros should seniors expect when receiving a pension from the age of 63? The table gives an overview:
As the table shows, the reductions can vary depending on the year of birth and the regular entry age applicable for that year. However, it is clear that early retirees can expect reductions of around 200 euros per month.
Retiring early: What seniors should definitely consider
In addition, retirees who want to retire early should note that the reductions are deducted from the pension value that one had reached at the time of early retirement. The reductions do not apply to the higher pension that seniors would receive if they retired at the regular time.
Early retirement in Germany can be associated with significant reductions. These can vary greatly depending on the year of birth. © IMAGO / Steinach/ Panthermedia/ Collage: Echo24.de
Because of this, women in particular should consider whether they want to retire early. The reason: on average, they receive several hundred euros less in pension than men – even without deductions.
