Different requirements
According to t-online and Steuertipps, some requirements must be met. In order to be able to compensate deductions, you must be at least 50 years old and insured in the statutory pension insurance. In addition, the standard retirement age must not have been reached. You must have at least 35 insurance years before you plan to retire. The conditions are part of the flexible pension. In order to be able to voluntarily pay into the statutory pension fund, you must be at least 16 years old. In addition, the place of residence must be in Germany. This applies, for example, to civil servants, freelancers or the self-employed. But Germans who live abroad can also make voluntary contributions.
Advice on pension insurance seems sensible
In order to acquire pension points, an application to the German pension insurance is required. The amounts can be paid continuously or all at once. If deductions caused by early retirement are to be compensated, a pension information should be requested from the pension insurance company beforehand. In order to be able to assess whether it makes sense to acquire pension points and to be sure when which payments have to be made, you should seek comprehensive advice from the pension insurance company.
Retirement points will increase in value in 2022
The cost of one payment point depends on the current pension value. Since July 1, 2021, one pension point has been worth 34.19 euros in western Germany and 33.47 euros in eastern Germany. The pension value usually increases in July – and this will also be the case in 2022. While in 2021 there were only 1.2942 pension points and thus an additional EUR 44.25 for a special payment of EUR 10,000, one payment point from July 1, 2022 is worth EUR 49.14 . However, when earning pension points, there is a minimum and a maximum value. In 2021, the minimum amount was 83.70 euros and the maximum amount was 1,320.60 euros. According to rentenbescheid24, the values should not change according to the current status for 2022.
A contribution that has already been paid cannot be changed afterwards. Because Retirement Points are non-refundable, you should think carefully before deciding whether or not to retire early. Whether it makes sense to use it or not depends very much on the individual life situation and can hardly be answered in general terms. Therefore, the advice of an expert in pension insurance should always be sought.
M. Wieser / Editor finanzen.net
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