Retire earlier: How to secure the best conditions!

Retire earlier: How to secure the best conditions!

Many people want to retire at 63. However, there are some important factors to consider when planning for retirement. In order to be able to retire early, proof of at least 35 years of pension must be provided. However, if you retire early, you will be subject to pension reductions that will have a lasting effect.

The regular retirement age will be gradually increased so that those born in 1958 will be 66 years old, those born in 1959 will be 66 years and 2 months old, and this will continue up to those born in 1964, who will only be able to retire at 67 years old. Especially for people who have reached 45 years of pension insurance, there is the option of retiring earlier and without deductions.

Early retirement and its deductions

For those born in 1961, early retirement is possible at 64 years and 6 months, while those born in 1962 can retire from 64 years and 8 months. Even later age limits apply to those born in 1963 and 1964, with those born in 1963 being able to retire without deductions at 64 years and 10 months and those born in 1964 only being able to retire at 65 years of age.

It is important to note that deductions are due for a pension from the age of 63. For the 1960 vintage the discount is 4.8%, while for the 1961 vintage it is already 9.0%. The discount for the 1962 vintage is 13.2% and for the 1963 vintage it is 13.8%. These discounts apply permanently and can result in significant financial losses.

Example calculation of pension deductions

An example illustrates the effects of these deductions: For a regular pension of 2,000 euros, which is drawn at the age of 63, the monthly deduction is 288 euros. Alternatively, pensioners have the option of choosing a flexible pension, which allows them to work part-time while receiving their pension and thereby minimize financial losses.

In addition, voluntary contributions to pension insurance can be made from the age of 50. These payments are tax deductible up to 29,000 euros and help to offset possible pension reductions. It is advisable to seek individual advice from the pension insurance company in order to carefully examine your personal options.

Although the path to retirement brings with it many challenges, there are various options available to secure your financial situation in old age. Those interested can find further information about the Flexirente and its advantages on the Sparkasse website, which offers detailed advice on financial issues in order to optimize individual pension planning. The star and the Savings Bank provide helpful insights into this important topic.