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When can I retire without pension deductions?

In short

When can I retire without pension deductions? In Germany it depends on your year of birth. If you were born in 1964 or later, you can retire at 67, or at 65 after 45 years of qualifying periods. Each month you retire earlier cuts your state pension by 0.3 percent for life, so retiring at 63 can cost up to 14.4 percent. Severely disabled people get a full pension from 65.

When can I retire without pension deductions?

What it costs

Statutory values and official figures for 2026, with a sample pension.

ExampleTypical range
Deduction per month before the age limit0.3 percent, four years early 14.4 percent
Sample pension EUR 1,500, four years earlyEUR 216 less a month, for life
One earnings point to buy back in 2026 (EUR 51,944 times 18.6 percent)about EUR 9,662
Monthly pension from one earnings point from 1 July 2026EUR 42.52
Increase per month after the standard retirement age0.5 percent, one year later 6 percent

Statutory values from Social Code Book VI and official figures of the German pension insurance,

as of November 2026.

The sample pension and the buy-back amount in the example are our own calculations with these

values.

Only the information letter from the pension insurance states your exact buy-back amount.

Worked example

Born 1964, 38 insured years, wants to retire at 63

The 45 years are out of reach, so only the pension for long-term insured people with a deduction remains. This is the calculation with an assumed pension of EUR 1,600 at 67.

Months before the age limit of 6748
Deduction (48 times 0.3 percent)14.4 percent
Pension after deductionEUR 1,369.60 instead of EUR 1,600
Monthly gapEUR 230.40, for life
Buy-back at 2026 values, roughlyabout 6.3 earnings points, around EUR 61,000

Retiring at 63 leaves a gap of about EUR 230 a month. Offsetting it fully costs about EUR 61,000 at 2026 values, payable from age 50. The binding amount is stated in the pension insurance's information letter.

Retirement ages by year of birth

The full state pension starts at the standard retirement age (Regelaltersgrenze). It has been rising step by step since the 1947 birth year and is 67 for everyone born in 1964 or later. You only need the general qualifying period of five years.

You can retire earlier without deductions with the pension for especially long-term insured people. For that you need 45 years of qualifying periods. This age limit also rises by year of birth and reaches 65 for those born from 1964. This pension type has no earlier start with deductions.

Year of birthStandard retirement ageWithout deductions after 45 years
195966 years and 2 months64 years and 2 months
196066 years and 4 months64 years and 4 months
196166 years and 6 months64 years and 6 months
196266 years and 8 months64 years and 8 months
196366 years and 10 months64 years and 10 months
from 196467 years65 years

What counts towards the 45 years

The 45 years are not years of age but months with compulsory contributions from employment, child raising and care credits, and periods with sickness benefit or unemployment benefit. Voluntary contributions only count if you have at least 18 years of compulsory contributions.

Watch the last two years before retirement: unemployment benefit from that period does not count, unless you became unemployed because your employer went insolvent or closed down completely. Months gained through pension splitting after a divorce do not count either.

Your insurance record from the German pension insurance (Deutsche Rentenversicherung) shows whether you reach the 45 years.

What an earlier start costs

For every month you start an old-age pension before your age limit, it falls by 0.3 percent. This applies for the whole time you draw it, also after your 67th birthday. Four years early means 48 months times 0.3 percent, so 14.4 percent less.

There is a second effect many people miss: if you stop working earlier, you pay in for fewer years. Your pension is already lower than the forecast to 67 before the deduction.

Waiting pays off: if you keep working after the standard retirement age and do not yet draw the pension, you get 0.5 percent more for each month. One extra year brings 6 percent for life.

Pension type from 1964 birthsWithout deductions fromEarliest fromHighest deduction
Standard old-age pension, 5 years6767none
Long-term insured, 35 years676314.4 percent
Severely disabled people, 35 years656210.8 percent
Especially long-term insured, 45 years6565none

Buying back deductions or bridging privately

From age 50 you may pay extra contributions to the pension insurance to offset deductions fully or partly. You first request an information letter in which you state that you plan to retire early.

One earnings point costs about EUR 9,662 in 2026 and has paid EUR 42.52 of monthly pension since July 2026. From 2027 buying back gets more expensive because average earnings rise.

The alternative is a private pension or savings plan that pays for the years until your full pension. It does not lower the deduction but shortens the time you have to manage with less.

When an early start still makes sense

If your health no longer allows you to work, the deduction is often the lesser evil. First check whether a reduced earning capacity pension or the pension for severely disabled people applies.

If you only want to retire one year early, have the buy-back calculated. With a 3.6 percent deduction for twelve months the amount is often manageable.

Step by step

  1. Find your year of birth in the table and note both age limits.
  2. Request your insurance record from the German pension insurance and have the 45 years counted.
  3. If you are severely disabled, check that the recognition is still valid when you retire.
  4. From 50, request an information letter on buying back deductions if you plan to retire early.
  5. Work out the gap until the full pension with savings or a private pension.

Checklist

  • Standard retirement age for your year of birth known
  • Insurance record checked for gaps, such as training or periods abroad
  • Unemployment benefit in the last two years before retirement considered
  • Deduction worked out in euros, not just percent
  • Health insurance and tax on the pension included in the calculation
  • Private pension aligned with your planned start

Common mistakes

  • Believing retirement at 63 is free of deductions, although that only applied to earlier birth years
  • Confusing 45 years of age in work with 45 years of qualifying periods
  • Becoming unemployed shortly before retirement and losing the months for the 45 years
  • Thinking the deduction is temporary, although it applies for life
  • Applying to buy back deductions only after 2026, when it gets more expensive

Questions and answers

Frequently asked

Can I retire at 63 without deductions?

Not if you were born in 1964 or later.

At 63 you can only retire with a deduction; after 45 years without deductions only from 65.

How high is the deduction per year?

3.6 percent, that is 0.3 percent per month.

It applies for the whole time you draw the pension.

Does the deduction stop at 67?

No.

The pension stays reduced permanently; the deduction cannot be removed later.

Do child raising periods count towards the 45 years?

Yes, compulsory contributions for child raising and care credits count.

From when can I buy back deductions?

From age 50.

You need an information letter, which you request from the pension insurance.

Does a private pension help against deductions?

It does not lower the deduction,

but it can bridge the years until the full pension or fill the gap permanently.

Sources

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