Cash in on Your Future: Don't Miss Out on Early Retirement at 45
Written by Matthias Urbach
Approx. Reading Time: 3 Minutes
Individuals who forego early retirement with less than 45 years of accrued pension benefits are perceived to be unnecessarily spending their savings. - If you fail to retire before the age of 45, you opt to contribute funds instead.
Let's talk about money and your golden years. When it comes to pension insurance, retiring early might seem like a dream, but it's more achievable than you think, especially at 45! 🤑
Wondering what the deal is? If you've got 45 years of insurance coverage under your belt, you can skip the nine-to-five rat race early without taking a financial hit. Thanks to a decision from the black-red government coalition, this deduction-free retirement after 45 years of insurance coverage is here to stay, up to two years before the regular retirement age. 🌟
But Why Should You Apply for Early Retirement?
Even if you're reluctant to leave work, it's a no-brainer. By applying for early retirement, you can create a lovely financial cushion for your later years. You get to keep your salary and, on top of that, enjoy a pension. What's not to love? 💸
Since 2012, those who have earned their 45 years of pension coverage are eligible for this early retirement perk. But don't worry if you didn't start working early—you can earn pension years through caring for relatives, raising children, or military/alternative service. 🤝
Approximately one-third of retirees choose this option, but many continue working in their old jobs. 🌟
Can You Continue Working After Early Retirement?
You bet! Continuing to work doesn't disqualify you from enjoying your pension. In fact, you can even keep contributing to the pension fund.
The amount of the pension is calculated as follows: one receives their salary, and on top of that, they enjoy a pension, which is a part of their personal-finance strategy for a comfortable retirement. Since 2012, people who have earned their 45 years of pension coverage can opt for early retirement, allowing them to continue working, even contributing to the pension fund.
