What Does Early Retirement Really Cost You?
0.3 % deduction per month before 67 — up to 14.4 % lower pension, for life. Calculate the financial impact and your compensation payment.
6367
- Reduced Pension
- €1,712
- Deduction
- −14.4 % (€288)
- Compensation Payment (§187a)
- €57,600
- Lifetime Reduction
- €69,120
- months earlier
- 48
Maximum deduction: 14.4 % (48 months = 4 years early). Retirement at 63 requires 35 contribution years.
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Comparison
| Category | Amount |
|---|---|
| Gross pension at regular age | €2,000 |
| Months before regular retirement age | 48 |
| Deduction rate | −14.4 % |
| Deduction per month | €288 |
| Reduced monthly pension | €1,712 |
| Annual reduction | €3,456 |
| Lifetime reduction | €69,120 |
| Compensation payment (§187a SGB VI) | €57,600 |
Note: Calculation based on §77 SGB VI (deductions) and §187a SGB VI (compensation payment). The compensation amount is an approximation; the actual figure depends on the conversion factor and age. Compensation payments are tax-deductible as Sonderausgaben.
Background
Early Retirement in Germany 2026: Deductions, Reduced Pension and Compensation Payment Explained
12 Min.