Interesting about retirement in Germany

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Let's mention one interesting fact: Germany has one of the most efficient pension systems in Europe. Why? Read on.

Main payout types

Pensions in Germany are divided into three categories:

- Issued by age.

- Dependent benefits (they are accrued in case of loss of a breadwinner).

- Disability payments if a person is completely and professionally disabled.

Details

Let's consider the first type - these are pensions in Germany, which are issued according to age. This includes several types of payments:

- General payments when a person reaches 67 years of age (valid since 2012), if there is at least 5 years of work experience.

- Benefits for the loss (partial or complete) of people's ability to work when they reach the age of 60, if the person was recognized as unfit for work and his work experience is over 35 years.

- Age benefits for unemployed or part-time workers over 60 years of age. This applies to those people who have been unemployed for the last 1.5 years, as well as to employees who have been working part-time for at least 52 weeks or 24 months. Work experience must be at least 15 years.

- Paymentsthose who have more than 35 years of experience in the country.

- Payments only to women born in 1952, who have reached the age of 60, who have been in the country for 15 years or more. 10 years and 1 month must be after their forties.

- Benefits for miners with 25 years of service and 60 years of experience.

Pensions in Germany are not calculated automatically. You have to apply for a certain type of payment. To do this, you will have to fill out a special form. Only those people who have earned it can receive a labor pension. Such a right cannot be transferred, it arises under the conditions described in the laws. The main requirement is the onset of the appropriate age, determined separately for each category.

Essential point

To receive a pension in Germany, you need to have a certain number of years of work, which is insured. It's called Wartezeit. It all depends on the type of benefit. This period can range from 5 to 35 years.

The average pension in Germany in 2013 is 1266 euros.

Insurance

There are several types of security in this country. There are three main levels:

- Mandatory state security.

- Business insurance.

- Non-government provision, private funds.

State insurance is mandatory for all people whose monthly income is more than 3900 euros before deducting the necessary taxes. The system is quite traditional. Its essence is that working residents docontributions to the fund, due to this, pensioners live. The principle of redistribution operates in the country - it is a kind of solidarity agreement between people of different generations. There is no accumulation of deposited funds, they are used immediately. Many high-income Germans are turning away from public services and turning to private traders. It is popular with farmers and entrepreneurs. The payer himself decides how much he will deduct when he concludes an insurance contract for his pension.

The size of the pension in Germany is decent, we have a lot to learn from them. The inhabitants of this country are sure that if you do not take care of your own provision in old age, then no one will. Therefore, one should not think that the high benefit is the merit only of the state authorities of the country, as many Russians believe.