Particle.news
Download on the App Store

Germany’s 2025 Pension Rules Clarified: Who Can Retire at 63 and What It Costs

The latest tables quantify permanent cuts for retiring at 63, reflecting rules now operating alongside a legally fixed 48% pension level through 2039.

Overview

  • From birth year 1964 onward the regular retirement age is 67, with early retirement possible from 63 for those with at least 35 insurance years but at a permanent 0.3% cut per month early.
  • Those with 45 insurance years can retire earlier without deductions under the benefit for particularly long-term insured, which is 65 for the 1964 cohort.
  • DRV figures show early exits can reduce pensions by up to 14.4% for starting four years before the regular age, illustrated by a €2,000 projected pension losing €288 per month at 63 plus fewer points from shorter contribution time.
  • A new 2025 recalculation highlights low-earner risk: earning €1,200 gross per month for 40 years yields about €465 gross pension monthly, roughly €405–€410 net before taxes using the €40.79 per point value.
  • Analyses point to late‑1940s and early‑1950s birth cohorts as having comparatively low relative pension levels, while 1964-born workers are the first full cohort under the higher age, and the 2025 law now guarantees a 48% Sicherungsniveau and launches the Generationenkapital.