Calculating pension correctly at 63: This mistake costs a lot of money

Those who retire at age 63 must usually accept deductions in their pension. There are also other losses for early retirees.

  • If you want to calculate your future pension, you can use pension calculators on the Internet
  • It gets more complicated when you retire as a 63-year-old: There are several deductions
  • How to calculate pension at age 63? We show you what mistakes you should not make

Those who retire earlier generally receive a lower pension. It is clear in the law. Deutsche Rentenversicherung also provides figures on this. For each month you reach before you reach retirement age retire, you get 0.3 percent deducted from your monthly salary. Nothing changes in this minus either. It lasts until the end of life and can amount to a maximum of 14.4 percent. This also has to do with your year of birth. But more on that later.

In addition to these deductions, you must be prepared for further losses in your pension in the event of early retirement, which are not so easy to calculate. More precisely, there are no deductions either, but no increases.

For every year you have one Pay recipient, you also pay into the statutory pension insurance and thereby increase your future pension. If you retire earlier, no more money will come from you employer and thus the increase is gone.

Retire as a 63-year-old: Failure to pay means no increase

How much you increase your monthly pension logically also depends on your salary. This is set in relation to the average salary for all insured. If this ratio is exactly the same, there is exactly one payout point in your retirement account. is yours pay lower or higher than average, there are more or fewer pay points in percentage.

  • The average salary is currently 38,901 euros in the old federal states and 37,333 euros in the new federal states.

However, it is included contribution assessment limit a maximum height. The pension insurance does not include money that you earn in addition to it in the calculation of the accrual points.

  • The contribution threshold for 2022 is an annual gross salary of EUR 84,600 in the old federal states and EUR 81,000 in the new federal states.

Retire at 63: How to Calculate Your Lost Increases

But how exactly does this calculation work, and how much does it cost you in terms of early retirement? your collected payment point be included pension value times. It will be included until July 1, 2022 34.19 euros in the old federal states and at 33.47 in the new federal states. If you claim an ordinary national pension when you retire, it gives you your monthly pension.

Simplified sample calculation:

  • A baker from Essen had to work until she reached the normal retirement age of 67 years
  • But she is already retiring at 63
  • She earns a gross annual salary of 30,000 euros, which equates to about 0.77 earning points
  • In four years, it gives a total of 3.08 salary points
  • If the baker continued to work, her monthly pension would be around 105 euros higher

It should be noted that the minus can be even higher. Because it may happen that the pension value increases. Then your lost payment points would also be worth more.

Retire at 63: Calculate deductions based on year of birth

As promised in the beginning, it is now about the percentage deductions and what they have to do with your year group. The background is that the ordinary retirement age is currently being raised step by step from 65 to 67 years. From the 1947 vintage this rises retirement date monthly until those born in 1964. Everyone born this year or later is entitled to an ordinary national pension at the age of 67. As a result, the number of months spent calculating the deductions for the 63 pension also increases with the increases.

Who, for example, 1959 is born can retire usually at the age of 66 years and 2 months. If the person applied for the pension at age 63, the deductions would amount to 11.4 percent. (38 months x 0.3 percent).


Pension in Germany – facts and history

  • System: that statutory pension works according to the principle of equivalence and solidarity.
  • Annuity types: Those are still there Basic, early and survivors’ pension.
  • exceptions: A large majority of the self-employed and freelancers are exempt from statutory insurance.
  • Financing: The statutory pension in Germany is basic pay when you go.
  • problems: The problems of underfunding are mainly due to the increasing aging population in Germany.
  • Three pillars: that pension scheme in Germany is based on three pillars. This includes statutory, corporate and private pension schemes.
  • Origin: She became Chancellor on July 22, 1889 Otto von Bismarck officially introduced.


Anyone born in 1960 can retire regularly at the age of 66 years and 4 months. If this person were to apply for the pension at the age of 63, the deductions would already increase 12 percent apply (40 months x 0.3 percent).

Please note: These values ​​apply to persons who may claim between 35 and 44 years of insurance from the pension insurance and are therefore considered “long-term insured“are valid.

Simplified sample calculation:

  • The baker from Essen was born on 1 January 1963 and, as a long-term insured person, was to retire regularly at the age of 66 years and 10 months, ie. October 2026
  • But because she no longer wants to get up in the middle of the night almost every day, she wants to retire at the age of 63, ie 1 January 2023. Her deduction is therefore 13.8 percent (46 months x 0.3 percentage)
  • The deductions are applied to the earning points she has earned at the time of retirement. That is 35. Your monthly pension without deduction would therefore be around 1197 euros at this time (35 earning points x 34.19 euros pension value West)
  • Minus the 13.8 percent, it is about 165 euros less per month. So only 1032 euros pension
  • If she had continued to work on her gross salary of 2,500 euros (30,000 euros / year) for the 46 months until she would normally start on her national pension, she would have earned about 2.95 earning points during this time (3 year x (30,000 / average salary) + 10 months x 2500 euros / average salary)
  • These 2.95 payment points would be worth around 101 euros in monthly pension

The losses for the baker to retire at 63 years are therefore total 266 euros. (jasc)

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