Overview
- Having 45 credited years does not guarantee an early, penalty-free pension, since eligibility depends on meeting the minimum age for that specific pension type, and any early start triggers a permanent 0.3% reduction per month (about 14.4% for four years).
- Early-retirement pathways include the Flexirente from age 63 with at least 35 insurance years, which entails reductions, whereas the 45-year option is only penalty-free at each cohort’s minimum age, such as 65 for those born in 1964.
- Mitigation options include voluntary top-up payments calculated by the DRV on request (form V0210), working part-time while drawing a pension, and careful application timing, including whether to permit a pre-start earnings ‘Hochrechnung’ that will be automated from 2027.
- For sickness benefits, employers pay wages for up to six weeks before statutory Krankengeld applies, typically up to 78 weeks for the same illness, with a 2026 daily cap of €135.63, and after ‘Aussteuerung’ many qualify for ALG I under the Nahtlosigkeitsregelung if they register in time and follow Reha directives.
- Fresh data highlight large pension disparities, with end‑2024 averages of €1,405 for men and €955 for women, alongside marked East–West differences and documented motherhood effects on later-life benefits.