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Retire at 63: Loophole helps when missing insurance years

Retire at 63: Loophole helps when missing insurance years

  • fromPatricia Hooper

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If you want to retire early without deductions, you need a few years insurance. But there is a trick that can make this easier.

BERLIN / MUNICH – More and more people want to move early pension he goes. This also makes the so-called pension very attractive for those who have been insured for a particularly long time. If you have 45 years of insurance accumulated, you can retire early without deductions. This option is also often referred to as retiring at age 63. Retiring from this age applies only to those born until 1953. It has been gradually raised for everyone else. So if you were born in 1958, you can get an old-age pension without deductions at 64 with insurance at 45, for example.

Retiring at 63 is increasingly popular

When Pension Option 63 was introduced, the government expected about 200,000 full pension claimants each year. According to Retirement Insurance, about 257,000 applications were submitted last year. In 2020, there were about 260,000 applications. “People take advantage of the opportunities provided to them by law,” the head of the Pensions Insurance, Gondola Rossbach, told dpa.

In fact, these 45 years also include the times when the future pensioner received unemployment benefits. However, a problem arises when retirees have already paid into the Pension Fund for 43 years and then become unemployed shortly before retirement. Because receiving unemployment benefit is no longer counted among the years of pension payment.

Pension without deductions at 63: unemployment benefit and a small job as a solution

But there is a loophole through which you can get your status as a privately insured person in the long term. “If insured people have become unemployed in the two years before retirement and have not yet reached 45 years of insurance, a small job can help,” explains Katja Braubach from the German Pensions Insurance to the federal government. T online.

However, if you wish to use this option, you must ensure that you are not exempt from compulsory insurance, as is possible with small jobs. If you are exempt, the function is only calculated proportionally, Braubach explains to the internet portal. Then there is no personal contribution of 3.6 percent. In addition, when receiving unemployment benefit I, only 165 euros per month can be earned without being compensated for unemployment benefit. There is also a limit on the number of hours per week: you can only work 14 hours a week so you don’t lose your right to cash from the office.

One thing is clear: Anyone who lost their job two years before reaching the 45-year-old mark should definitely consider the option of a mini-job along with unemployment benefits. However, if you have the opportunity to stay in your old job until you reach the age of 45, you should think carefully about whether to use this loophole. After all, in most cases this is also accompanied by a loss of income and therefore a lower pension in the future. (ph/des)

List of bases: © IMAGO / Michael Gstettenbauer