Which is better, partial retirement or retirement at 63?

If you apply for “partial retirement”, your salary will be halved, but then the employer (AG) will increase it by 20 per cent of the reduced salary. In addition, the employer must continue to pay at least 80 per cent of your previous pension insurance contributions. Partial retirement is therefore better for your future pension entitlement than normal part-time work. This is because you receive at least 80 per cent of the pension contributions of your full salary from your employer, even though you only work half the number of hours per month.
The wording of most contracts on part-time work for older workers (ATZ) reads as follows: “Part-time work for older workers ends when a pension without deductions becomes possible”. The wording is mainly chosen in such a way that it is irrelevant whether a pension is actually applied for. Instead, the ATZ ends at the time when the pension could be applied for. You should therefore pay attention to this. Under certain conditions, you can already draw a pension without deductions at the age of 63.

If you want to understand what you can expect from the german state pension than you can calculate it accurately with our mobile app.

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