If you would like to earn more, this must be reported to the responsible health insurance company. In addition, there is a maximum additional income limit of 6,300 euros (due to Corona, this was raised significantly for 2020, 2021 and 2022, read more about this here). Anything beyond that will be deducted from your pension. Minister of Labor Hubertus Heil wants to abolish the additional earnings limit. More about this here.
Which contribution years count towards the pension at 63?
For the rules for particularly long-term insured 45 years are not absolutely necessary in an employment relationship. You can also count other times for the necessary contribution years. A selection of possible contribution times:
- the upbringing of a child up to the age of ten
- the voluntary social year
- Times with a mini job in which contributions were paid
- Times with compulsory contributions from self-employment
- Times of receipt of benefits in vocational further education
- Times of compulsory military or community service
- Times in which the insured person did not care for relatives for gain,
- Times in which unemployment benefit, partial unemployment benefit, benefits in the event of illness (e.g. sickness benefit, injury benefit) or transitional benefit were received,
- Stages of life in which you received short-time work benefits or insolvency benefits.
What is the standard old-age pension?
When you can retire usually depends on your age. You must have reached a certain age in order to be able to receive an old-age pension. That’s also called retirement age. You must have paid into the pension insurance for at least five years.
Upon reaching the age of 67, the monthly pension will be paid to everyone born after 1964. For employees who were born before January 1, 1947, the pension still applies at the age of 65.
A staggered regulation applies to all years in between. In this table you will find the exact graduation:
The amount of the statutory pension depends on your income. But it also depends on whether you want to retire before the normal retirement age.
As a rule, you have to reckon with deductions for early retirement
If you want to take early retirement – i.e. before the standard retirement age – you usually have to expect deductions. For each month that you want to retire earlier, you have to deduct 0.3 percent of your pension. Calculated over the year, this is already 3.6 percent. The total discount is a maximum of 14.4 percent (see table above).
It applies to the entire term of the pension, i.e. until your death. However, you can compensate for the losses with a one-off payment (see above). In addition, a minimum insurance period of 35 years applies. You can only take early retirement without deductions if you have paid contributions for at least 45 years (see above).
example: If the standard retirement age of 67 applies to you, but you want to retire at exactly 63 because you don’t want to wait a month longer, you can expect deductions of 14.4 percent. With regular monthly retirement benefits of EUR 1,000, that would be EUR 144 less per month and EUR 1,728 less per year.
With the help of the German Pension Insurance Calculator, you can work out both the probable retirement date and the possible amount of your monthly pension. You can find him here.