Planning Early Retirement in Germany Under 2025 Rules

Overview

• Germany’s regular retirement age continues to rise to 67 for those born in 1964 or later, with early retirement from 63 carrying permanent 0.3% monthly deductions up to 14.4%, while 45 insurance years allow earlier entry without deductions.
• Since 1 July 2025 the pension value stands at €40.79 per point after a 3.74% increase, setting the current baseline for calculating monthly benefits.
• Leaving earlier cuts not only the pension via formal deductions but also the underlying pension points, with a model showing the later starter overtakes total payouts only about 18 years after the regular start, depending on assumptions and net effects.
• Flexirente enables phased retirement with continued work, the 2023 removal of earnings limits allows unrestricted additional income, and delaying retirement raises the payment by 0.5% per month alongside more points.
• In the crucial run-up, ALG I months within the last 24 before pension start generally do not count toward the 45-year rule (except in insolvency or full business closure), KVdR eligibility hinges on the 9/10 rule, and from age 50 voluntary top-ups via DRV form V0210 can offset deductions with tax advantages.