Officials receive significantly more references than employees in old age. There are various reasons why guest houses are much higher than the usual pensions.
Pension significantly higher than legal pension
Pensions and guest houses are two different retirement systems in Germany. While the pension is the contribution-financed old-age insurance for employees, the pension forms the tax-financed system for civil servants and other employees in public service service. These include, for example, civil servants, judges, professional soldiers and pastors.
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In retirement, officials and other employees in public service have significantly higher payments than pensioners. In 2022, federal officials received an average of 3,227 euros pension gross per month, according to the latest data from the Federal Statistical Office. In contrast, after 35 years of membership in the statutory pension insurance, employees come to an average of EUR 1,384 net per month. So the status at the end of 2022, as the German Pension Insurance (DRV) determined. The maximum pension that employees can receive is 3,242 euros a month – provided that top salaries have been collected for 45 years, which is rarely the case. The different amount of pension scheme is, among other things, that the pension level of normal employees only reaches an average of 48 percent of their average income, according to the Federal Center for Political Education.
Different systems and payments
However, a direct comparison of the two sizes is difficult. Because pension and pension cover different many pillars of German old -age insurance. This can be found in an overview of the 3-pillar system of old-age insurance from the Federal Center for Political Education. While the statutory pension only includes the control of the rules (first pillar), the civil servant also covers the additional security (second pillar). Because an operational or other supplementary supply, as there are with employees, does not exist for civil servants. For the third pillar, private provision, both employees as well as civil servants and other employees in the public service are responsible.
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Furthermore, pensioners, compared to pensioners, have to take out private health and long-term care insurance, since disease and care costs are only partially adopted by the state. According to the news website Business Insider, this means that a large part of the pension must be used for insurance contributions that continue to rise with increasing age. At the same time, pensioners can use higher contributions to private pension, since they do not have additional operational supply.
In addition, officials and other employees in public service have the option of paying into statutory pension insurance. However, a change from the legal pension to civil servants is not possible, according to Business Insider.
As a result, pensioners must fully tax their payments, while taxation in the event of statutory pensions increases gradually. Depending on the area of employment and qualifications, the amount of the pension is also different.
Who is entitled to pension
From when the retirement age is reached depends on the year of birth. Anyone who was born before 1947 can retire at the age of 65. After that, the regular age limit gradually increases until the year of birth 1964, from which the limit of 67 applies. If you want to retire prematurely from the age of 63, you have to retire. This reports the news portal T-online. In addition, the service time of pensioners must have at least five years or an early incapacity for work due to an accident for which even no gross guilt is to be borne.
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