The statutory retirement age in Germany is gradually being increased to 67 years. Those who want to work longer receive additional supplements.
For every month worked beyond the standard retirement age, you will receive an additional 0.5 percent on your pension amount in addition to the income from further payments.
Over a million people aged 67 and over work in Germany.
There will be more and more pensioners in Germany. Because: According to current regulations, the proportion of new pensioners should increase by 2035 rise almost 25 percent. This fuels the debate about a higher retirement age.
Economy Monika Schnitzer demanded in the “Münchner Merkur” linked to increasing life expectancy. “For every year more life expectancy, the retirement age should increase by eight months,” says the economist. But are you currently allowed to work in Germany beyond the statutory retirement age? And what advantages would that have for you?
The answer is yes, you can work longer. But many people shy away from working past retirement age. They believe that all they have to do is spend more time at work without significantly improving their financial situation. But that is a mistake.
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When can I retire?
The German retirement age is generally 67 years – but that only applies in stages. The age limit for the standard old-age pension without deductions will be gradually raised to 67 years by 2031. The increase will take place by the end of 2023, starting with those born in 1947 by one month a year. For example, if you were born in 1954, you can retire at the age of 65 years and eight months.
From the year 1964, the retirement age applies to all statutory insured persons from the age of 67. are in Germany 87 percent of employees in a statutory pension scheme. The remaining 13 percent receive a pension through a civil service contract or are privately insured or not insured at all.
Can I retire later?
Under labor law, nothing stands in the way of continued employment beyond the standard retirement age. However, you should take a close look at your employment contract: Many employment and collective agreements provide for termination when the legal entry age is reached. Make an individual agreement with your employer and put it in writing.
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There are no special legal regulations for working seniors. You have the same rights and obligations as younger colleagues. This applies to your holiday entitlement as well as continued payment of wages in the event of illness.
How much pension will I get if I stop working later?
In Germany, you receive a pension supplement of 0.5 percent for every additional month of statutory employment. If you defer retirement for one year, you will receive a surcharge of six percent. That might not sound like much at first glance, but in the long run, this amount adds up to a significant sum. On the one hand, the later pension increases through the payment of further contributions and you also receive the percentage pension supplement.
A calculation example: If you have paid into the pension fund for 45 years (gross earnings: 3242 euros per month) and retire at 67, you would receive 1538.55 euros in the old federal states according to the German pension insurance. If you retire two years later, you would receive 1,799.76 euros. That is 17 percent more, since the contributions paid are also included in the calculation.
Where can you get more information?
The Deutsche Rentenversicherung provides online information on pensions and additional earnings as well as on all other topics relating to statutory old-age provision. Alternatively, the employees of the pension insurance can advise you on the free service hotline 0800 10 00 48 00.
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