Special pension payments: Apply now until 2025 and benefit!

Special pension payments: Apply now until 2025 and benefit!

At the end of 2025, insured people who want to retire early will have the opportunity to make up for their pension deductions through special payments. This important information is highlighted by Ruhr24. The application for a special payment should be submitted by the end of 2025, as the costs for these payments will increase by around seven percent from 2026 - depending on future wage developments. Special payments can be used to offset pension reductions that arise when insured people retire earlier.

For each month that an insured person retires before the standard retirement age, a deduction of 0.3 percent is calculated on the monthly pension. This makes the compensation payments a significant financial factor. For example, if someone retires three years earlier and has an expected monthly pension of 1,200 euros, the necessary special payment is around 34,700 euros.

Requirements and application process

In order to be able to make special payments, various requirements must be met. These include a minimum age of 50 years and insurance in the statutory pension insurance, with at least 35 years of insurance or a severe disability required. To begin the process, interested parties must declare to the German pension insurance company that they would like to take advantage of an early retirement pension with discounts. It is important that the eligibility requirements are met by the start of the pension, as Deutsche Rentenversicherung describes.

Pension insurance offers the opportunity to receive individual information about the amount of the maximum possible special payments. This information includes the expected amount of the old-age pension, the pension reduction and the amount of the contribution to compensate for this reduction. Insured persons should be aware that the payment of the special payments must be made within three months of the information being provided. Otherwise the premium may increase.

Tax aspects and further information

Special payments can be deducted from taxes, but there are upper limits. In addition, the amounts paid in are not lost and increase the later retirement pension. Payments can be made as a one-off payment or in partial payments, whereby partial payments only partially compensate for the pension reduction.

The German pension insurance recommends finding out about the tax advantages from a tax advisor, especially if the special payments are spread over several calendar years. Using special pension information can also help to find out about the expected pension amount and possible deductions, as VLH notes.

Finally, it is important to emphasize that it is important to take the appropriate steps to potentially avoid financial disadvantage if you retire early. A timely application and careful planning are therefore essential.