The German government is planning to keep the early retirement option rule ‘Rente mit 63’ – the pension payment for those aged 63 years old – intact, according to a reply to a parliamentary inquiry by Kerstin Griese, state secretary of the Federal Ministry for Labour and Social Affairs (BMAS).
The early retirement option from 63 years old is for people who started work at a young age and that have made their contribution to stabilise the first pillar scheme from decades through employment, self-employment, care and child-rearing, Griese said in the reply.
“Against this background, no changes are planned,” she added.
The decision to stick with the Rente mit 63 rule is in line with the coalition agreement signed by the Social Democrats (SPD), liberal party FDP and Greens, excluding pension cuts and an increase of the statutory retirement age.
The demands of workers for an early retirement under the Rente mit 63 rule have increased steadily over the years since the regulation entered into force in 2014.
Requests for early retirement have grown to 288,491, as of November last year, from 181,871 in July 2014, according to the reply. Last year 274,938 requests for early retirement at 63 years old were approved, up from 258,398 in 2022, it added.
This year, the retirement age for people born in 1960 opting for the early retirement under the “pension from 63” rule increases to 64 years and 4 months, and also for those born after 1960 the retirement age will increase further, until 65 years old in 2029, according to the first pillar scheme’s manager Deutsche Rentenversicherung.
Monika Schnitzer, economist and chair of the German Council of Economic Experts, warned that the early retirement of people causes a shortage of workers in the labour market.
Opposition party Christian Democratic Union (CDU) called to completely strike down Rente mit 63.
Looking for IPE’s latest magazine? Read the digital edition here
No comments yet