Why were the new regulations introduced?
"The aim is to make the transition from working life to retirement more flexible for employees. This is why it is also referred to as a flexible pension. Anyone who wants to retire early should be able to combine part-time work and a partial pension more easily."
What advantages does the flexible pension offer me as an employee?
"It will be easier for you to work part-time in early retirement. You will also acquire more pension entitlements if you continue to work part-time because the new regulations mean that you are subject to compulsory insurance up to the standard retirement age. This will automatically increase your future full pension. Only when you reach the standard age can you freely decide whether you want to continue paying into the pension fund."
What exactly is changing with the additional earnings limit?
"Until now, you were allowed to earn a maximum of 450 euros a month before reaching the standard retirement age, plus 450 euros twice a year for vacation and Christmas bonuses. There were pension deductions for every cent more you earned. With the new regulation, you can continue to earn 6,300 euros per year without deductions, but now it doesn't matter whether it's a one-off payment or spread over the year."
What happens if I earn more money?
"If your annual income is 10,000 euros, for example, the 6,300 euros will be deducted from this as an allowance. Of the remaining 3,700 euros, 40 percent is then calculated and distributed over 12 months. In this case, this results in 123.33 euros being deducted from the pension each month."
Can I compensate for deductions more easily now?
"Not directly, but if you want to claim a pension before the standard retirement age, you can now start paying voluntary contributions into the pension fund sooner to offset the deductions. Previously it was possible from the age of 55, now it is possible from the age of 50."
What are the disadvantages of retiring earlier?
"You can only earn unlimited additional income without pension deductions once you have reached the standard retirement age. If you retire earlier and work part-time, you will earn less than before due to the deductions. However, you will also gain a lot of quality of life and time for yourself, which should not be underestimated."
Where can I find support for further questions?
"The Federal Association of Pension Consultants is happy to help. On the website www.rentenberater.de you can quickly find one of our contacts in your area using a zip code search."
Read also: