Germany new retirement rules. Life in Germany. Changes to the pension system will soon take effect, and one major update is the higher retirement age. This will impact those planning to retire in the next few years. The changes also affect people considering early retirement. Learn how these updates might affect you and how to get ready for them.
Germany raises retirement age
Starting in 2025, Germany will implement another increase in the retirement age. According to the German Pension Fund (DRV), individuals born in 1960 can retire at 66 years and 6 months without a reduction in benefits. This is part of a gradual plan to raise the retirement age to 67 by 2031.
The changes also impact those considering early retirement. Previously, individuals with at least 35 years of work could retire at 63 with a 0.3% reduction in benefits for each month of early retirement. Under the new rules, those born in 1962 who retire early at 63 will face a higher reduction—13.2%, compared to 12.6% in 2024.
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What will change in the coming years?
The rules for the “63 pension,” designed for individuals with long contribution histories, are also changing. Under the new regulations, people born in 1961 can retire at 64 years and 6 months. For younger generations, the retirement age will continue to rise gradually.
Pension policies remain a hot topic in Germany. The CDU has proposed “active pensions” to encourage people to work beyond the retirement age by offering financial incentives. Meanwhile, the SPD maintains its commitment to early retirement options and pension stability, firmly opposing further increases to the retirement age.