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Video: Pension: Better to work longer
Not everyone wants to retire at 65. Those who continue to work will be rewarded with supplements by the pension fund.
Finally enjoy your well-deserved retirement? Not at all! Around half of all workers aged 55 and over can imagine working in paid employment even after retirement. This emerges from a survey by the Federal Institute for Population Research (see graphic). Respondents named financial reasons and enjoyment at work, maintaining social contacts and the incentive to remain mentally fit as a drive to work longer.
The pension can wait If you want to stay in the previous company, you should check this option early. Since the pension reform, employment contracts in retirement age can be extended several times for a limited period. However, you and your employer must agree on continued employment in writing before you have reached the age limit. Would you like a little more? Anyone who defers their pension can look forward to supplements from the pension insurance. For every month you work beyond the standard age limit, there is 0.5 percent more. "For example, if you take the pension a year later, you will receive 6 percent more pension per month - and for a lifetime, " explains Dirk Manthey from the German Pension Insurance Association. But: If you postpone retirement later, you have to expect higher taxes. If you retire in 2015, you will have to tax 70 percent of your pension. In 2016, the taxable share for new pensioners increased to 72 percent. The increase of 2 percentage points per year will continue until 2020, after that by 1 percentage point. Working as a pensioner Even those who already receive the statutory pension can increase their income. "If you have already reached the standard age limit, you can earn as much as you like without any loss, " says the expert. "You don't have to report your job to your pension insurance provider."
Anyone who risks cuts It looks different if you retired early. Then high income from the part-time job can reduce the pension. The pension insurance then only pays a partial amount. You can earn up to 450 euros a month without any loss. “Twice a calendar year, you can even exceed the limit up to twice the value, ie 900 euros,” explains Manthey. This is worthwhile, for example, if holiday or Christmas bonuses are credited to the account or the manager compensates you for the overtime. “Be sure to report your employment to your pension insurance provider,” emphasizes the expert.
Before you start Get advice from the Deutsche Rentenversicherung, for example on the free service number 0800-1000 48 00. Further information can be found in the brochure "Old-age pension: You can earn as much", which you can download from www.deutsche-rentenversicherung.de. Also ask a tax advisor or income tax assistance association what taxes and duties you can expect to face if you postpone your pension or work as a pensioner.
Survey among 5, 000 people between the ages of 55 and 70: Many self-employed (67%) are considering continuing to work.
Photo: Source: Federal Institute for Population Research (top) 2013
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