Retire early? With these tricks it is possible

Despite all the complaints about a shortage of skilled workers, quite a few companies are interested in getting rid of older employees. Not least to create space for young people, for example in industries whose work is becoming particularly digitalized. This doesn’t necessarily have to be a bad thing for employees. Sometimes there is one

Employees who have a so-called degree of disability (GdB) of 50 percent or more can start their retirement at the age of 62 instead of the earliest at 63. Your standard retirement pension would start at age 65. Exiting at 62 costs a maximum of 10.8 percent deduction from the standard amount. Without a handicap, up to 14.4 percent will be deducted. The decisive factor is the approved degree of disability at the start of retirement – not the one before or after the start of retirement.

Upon request, the regional pension office will decide whether there is a 50 percent or greater restriction. The reasons for such a handicap are very diverse, including severe bronchial asthma, severe allergies, severe chronic pain, cardiac, circulatory and cancer diseases as well as stroke. One of the options is the MyHandicap Foundation’s website.

In principle it is neither nice nor desirable, but under certain circumstances the loss of your job through termination can be bearable by the employer. At least financially, and from the age of 61. Because: Anyone aged 58 or older is entitled to two years of unemployment benefit. This applies if you were compulsorily or voluntarily insured for at least twelve months in the 30 months before going to the employment agency. It is therefore an insurance benefit for which employees and employers have previously paid contributions.

The amount of unemployment benefit depends on the gross income in the twelve months before unemployment begins. The employment agency calculates a so-called performance fee. 60 percent of this is the amount that unemployed people receive per day. If there are dependent children, 67 percent is paid out. This can be calculated individually and as a monthly value very easily using the .

An example: For an annual gross average full-time salary of around 53,000 euros per year, this results in a monthly unemployment benefit of around 1,700 euros – for tax class I or IV, and without child(ren). In tax class III for married couples, around 1,900 euros would be paid out. Unemployed people are allowed to earn an additional 165 euros per month, so a small mini-job is permitted. Earnings above this amount will be counted towards unemployment benefit. A maximum of 15 hours per week is permitted.

Anyone who is laid off at 61 should also receive severance pay. The legal basis is half a gross monthly salary per year of employment. If you have been employed by your last employer for ten years, this would result in a severance payment of around 22,000 euros. If unemployment existed until the age of 63, around 900 euros per month would be available from the severance payment until then; Taxes (for severance payments according to the ) and any interest credits (for example as a call money investment) are excluded. In the calculation example for tax classes I or IV, this results in a monthly available sum of up to 2,765 euros. Crucial: Unemployment insurance, among other things, continues to pay contributions to pension insurance for up to two years, i.e. for 61-year-olds until the earliest possible start of old-age pension.

Pitfalls: Without proper notice of termination from the employer, the employment agency can block the payment of unemployment benefits for up to three months. She then assumes that there was consensual agreement when ending the job. And: The employment agency requires the cooperation of job seekers, even beyond the search for a mini-job. Looking for a job does not mean early retirement. The pension itself is also somewhat lower because unemployment insurance typically pays lower contributions than those previously paid in the employment relationship.

Whether it is possible to switch from age 61 to retirement at age 63 depends very much on the individual circumstances of those affected. The path is possible, but rocky.

Partial retirement, known as “ATZ” for short, enables employees aged 57 and over to get out of the proverbial hamster wheel – i.e. from the age of 60.

This is how it works: Employers and employees sign a contract that lasts up to six years. The following is then possible: In the first three years, the active phase, the work continues as normal. In the following three years, the passive phase, employees are released, so to speak “in early retirement”. Anyone who starts such a contract at the age of 57 is out of the company at the age of 60 – and then retires at the age of 63. In addition to this so-called block model, it is also possible. In principle, companies and employees can freely negotiate the start, end and overall duration of part-time retirement: as a company collective agreement, in the form of a company agreement or individually. However, none of those involved have a claim to part-time retirement agreements.

Partial retirement costs something. Namely employers and employees. A new, reduced salary will be calculated for the entire partial retirement period, i.e. up to six years. Basic formula: Last salary divided by two, plus 20 percent of that as a top-up amount. And: The employer continues to pay the social security contributions. Decent partial retirement contracts offer employees a little more top-up, so that the ATZ salary is 80 to 90 percent of their previous salary. Because: the reduced salary reduces the later retirement pension. If it begins before the standard entry, for example at the age of 63, pension reductions of up to 14.4 percent are added.

In order to supplement the reduced salary, ATZ employees are generally allowed to take up part-time employment. Your company’s approval rules apply. The main and secondary employment together may not exceed 48 hours per week. Attention: This also applies to the passive phase. It is not permitted to allow passive ATZ employees to work for the company again on a project-by-project basis, for example. Since 2023, there has been no limit to the amount of additional income in approved secondary employment. This is only relevant in the income tax return.