Retirement at 63 without deductions is possible if you have paid into the statutory pension insurance for at least 45 years – mini-jobs are also taken into account.
You can make use of the loophole by taking on a mini-job in the last two years before you retire and not waiving your pension insurance obligations.
However, the pension is only fully deductible for insured persons who were born before January 1, 1953.
The deduction-free pension at 63 is only available for older age groups and only after 45 years of contributions. You can find out here how a loophole can provide additional years of contributions and what options younger cohorts have.
When can you usually retire?
The regular pension in Germany begins at the age of 67 for those born after 1964. Staggered regulations apply to older age groups.
Is it even possible to retire earlier, for example at 63?
Yes, it is possible to retire earlier. However, there are usually deductions that affect the amount of the monthly pension payment. These deductions are 0.3 percent per month of early retirement and can total up to 14.4 percent.
So you can retire a maximum of four years before the standard retirement age. On the other hand, those who continue to work after reaching retirement age can even increase their pension by 0.5 percent for each additional month.
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What is the no deduction early retirement loophole and how does it work?
The loophole allows you to retire two years earlier by taking a part-time job in the last two years before retirement. It is important that you do not allow yourself to be exempted from the obligation to pay pension insurance for marginal employment with a limit of 520 euros.
With the manageable personal contribution of 3.6 percent, the contribution years would still be taken into account, reported “t-online”. Because in order to receive your pension without deductions at the age of 63, you must have paid into the statutory pension insurance for at least 45 years.
In addition to periods of compulsory contribution, this also includes credit periods, for example due to illness, unemployment or school education.
What other requirements must be met for a pension without deductions at 63?
In addition to the 45 years of contributions, the pension at 63 is only available for certain age groups. Insured persons must have been born before January 1, 1953. For the younger cohorts, the age limit increases in stages.
For example, anyone who would have to retire at the age of 67 – born before 1964 – can retire from their main job two years earlier, i.e. at the age of 65, thanks to the mini-job loophole.
What else do you have to consider?
In addition to the lower income from the mini job in the last two years, you also collect fewer pension points. This can have a negative impact on the amount of the pension. However, you can still earn something after you retire, because the additional income limit was lifted this year.
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