Parents with marriages that have dissolved - the distribution of the pension in the event of a divorce is not always final.
Insured persons can cancel the distribution if the ex-partner has not received the pension for more than three years before their death. To do this, they must submit an application to the pension fund for a retransfer of the pension rights shared in the pension equalization scheme.
Do you want to retire earlier?
Well, count me in. Retirement is a magical limit for many people. Anyone born in 1955 can retire in 2020 and 2021 as soon as they are 65 years and 9 months old. However, not every insured person wants or can work up to their normal retirement age. There are several ways to retire earlier :
Old-age pension for long-term insured
Prerequisite: A minimum insurance period in the statutory pension insurance of 35 years. In this variant, the early retiree has to accept discounts on his pension. Every month early pension costs 0.3 percent discount. For the 1964 vintage, who normally retires at the age of 67, the discount is 14.4 percent. Important to note: Due to earlier retirement, the insured person collects fewer earnings points than if he had worked up to his regular retirement age.
Old-age pension for the long term insured
Prerequisite: A minimum insurance period in the statutory pension insurance of 45 years. With this variant, the starting age for retirement increases (between the age of 63 and two months for born in 1953 and 65 for all those born after 1964). There are no discounts for this variant. But the lack of retirement periods up to the regular age limit also means less pension here.
Lastly, we want to remind you that there is no doubt - self-employed persons are obliged to take out pension insurance and these obligations around this are subject to change over the next decade as well.
In fact, there are very specific requirements that mean the self-employed must simply be insured, such as self-employed teachers and artists. You are obliged to take out pension insurance. Some others can voluntarily take out statutory pension insurance and choose their contribution relatively freely. In 2020 it must be at least EUR 83.70 a month and may not exceed EUR 1 283.40 a month.
In the coalition agreement, the Union and the SPD even agreed on a general pension requirement for the self-employed. However, details have not yet been determined and this is an exciting development to watch.
We hope we have been able to provide some information and support about a complex topic, we know it is hard for freelancers to get clear answers and we hope if you are in a carers role, are a parent or planning to be one - you’re feeling ready to tackle this challenge or optimise your current situation!