Changes to disability pensions: What financial experts should know

Changes to disability pensions: What financial experts should know

According to a report by www.merkur.de, the special regulation for people with reduced earning capacity who were born before 1961 will soon expire. This means that there will no longer be any entitlement to disability pension under the old law.

As a financial expert, I can tell you that this change will have a significant impact on pension rights and the financial situation of retirees. People born before January 1, 1961 are still entitled to occupational disability pensions under the old law. In the event of an emergency, everyone born later will receive the newer disability pension.

The central difference between the two models concerns occupational protection: under the old law, you could receive a BU pension if you were no longer able to work in your chosen profession, while under the new law you only receive a disability pension if you can no longer work at all - i.e. not in another profession.

This change has consequences for the financial industry as pension entitlements and payments change for affected pensioners. Those who are now reaching retirement age in particular have to deal with the new regulations. People who benefit from grandfathering can rely on the fact that their future retirement pension will not be lower than the disability pension they previously received.

It is important that affected pensioners seek advice before making an early retirement or retirement pension decision in order to understand the financial implications and make the best decision for their individual situation. The financial industry should prepare for increased requests for advice and information from pensioners in order to support them in this important decision.