Severely disabled pension or pension free of deductions from 63Etliche older employees are severely disabled. After reaching the age limit, you can usually claim the "old-age pension for severely disabled people". But what about the deduction-free pension for those insured for a particularly long time?? Is it also available for the severely disabled?? And is it not even cheaper?
Severely disabled pension after 35 years
Those with health handicaps are often unable to work full time until the regular retirement age. This is what the statutory pension insurance takes into account. Those who are recognized as severely disabled can therefore retire much earlier. The prerequisite for classification is a degree of disability of at least 50. The early retirement pension for people with disabilities – casually: the severely disabled pension – is intended for this purpose. If you were born in 1954, for example, you can receive this old-age pension at 63 years and eight months without deductions – i.e. without a pension reduction. And it is also possible to retire much earlier – but then with deductions.
For 1954ers, the severely disabled pension is already available at 60 years and eight months – but with a pension reduction of 10.8 percent.
In the coming years, the age limit for the earliest possible claiming of this pension will be moved backwards bit by bit – to 62 years (for those born in 1964). And the limit for receiving a severely disabled pension without deductions rises to 65 (also for those born in 1964). But the following still applies: The severely disabled pension is available much earlier than the regular old-age pension.
The hurdles that the legislator has built up before this pension are comparatively low. The severely disabled pension is granted after 35 years of insurance, whereby periods of school attendance or unemployment are also counted and a maximum of ten years of so-called allowance time per child.
This is why most employees with a severely disabled ID card are entitled to the severely disabled pension when they reach the age limit that applies to them. Under certain circumstances, however, they may be able to retire a few months earlier -. Retirement without pension reduction: with the new pension from 63 onwards without deductions. This is also possible for severely disabled persons if they meet the eligibility requirements.
Reduction-free old-age pension at 63
The old-age pension for particularly long-term insured persons is primarily a special offer for those who have paid into the pension fund for a particularly long time. Whether the persons concerned are severely handicapped or in good health does not matter at all.
The hurdles with regard to insurance periods are particularly high: those interested must have 45 years of compulsory contributions or periods of consideration for children. Those who overcome these hurdles can retire early without deductions – up to six months earlier than with the severely disabled pension .
Example: If you were born in 1954, you can only receive a severely disabled person's pension at the age of 63 years and eight months (see table). The old-age pension for particularly longstanding insured persons, on the other hand, is already available at the age of 63 years and four months – that is, four months earlier. This saves those affected a lifelong pension deduction of 1.2 percentage points (0.3 points for each of the six months). With a monthly pension entitlement of 1.000 euros, this makes a difference of 12 euros – for life.
The age limit for the old-age pension for those insured for a particularly long time also increases gradually – but more quickly than for the severely disabled pension. For those born in 1958 or later, it no longer makes a difference which of the two types of pension is drawn when it comes to retirement without deductions. For severely disabled persons born between 1952 and 1957, on the other hand, the new pension can bring advantages (see table)
Comparison of the "severely disabled pension" and the "pension for particularly long-term insured persons": When will the pension be paid at the earliest without a pension deduction??
Bold numbers: here the "old-age pension for particularly long-standing insured persons" offers advantages
What if the less favorable pension is requested?
If you apply for a severely disabled pension at the German pension insurance, you can be sure that they will also check whether the old-age pension for those insured for a particularly long time would be higher for you. "Then the application is evaluated from us as an application for the more favorable pension," explains the German Pension Insurance Westphalia.
Example: Anyone who has applied for the severely disabled pension and subsequently discovers that the old-age pension for those insured for a particularly long time would have been around 20 euros higher, must subsequently be reclassified to the better pension.
Conclusion: Employees with a severely disabled certificate should always check whether they are eligible for the old-age pension for particularly long-term insured persons, which is free of deductions. However, they should note: Of course, it is an advantage to be able to retire up to five months earlier without deductions. But if you leave your job early and retire early, you also miss out on months of contributions. The pension is therefore somewhat lower – even if it is paid free of deductions. For an average earner, an additional year of employment brings a monthly pension that is about 30 euros higher.