Anyone who wants to retire before the normal age limit - currently 65 years and 9 months for the 1955 year of birth - waives a lot of money. Because every month of early retirement costs 0.3 percent of the retirement pension. For example, if you have a monthly pension of 1200 euros in prospect, you will lose 3.60 euros for every month you stop working earlier.

If you give up your job a year earlier, you will lose 3.6 percent according to the formula - with a retirement pension of 1200 euros, this is 43.20 euros per month. This reduced amount applies for life. Assuming that early retirees receive their old-age benefits for 20 years, this loss adds up to almost EUR 10,400 - without the likely future increases in pensions. Only early retirees who can have at least 45 years of insurance are exempt from the losses.
With a gross pension of EUR 800 per month in the old federal states and a one year early retirement, the pension reduction is 3.6 percent, i.e. twelve times 0.3 percentage points per month. This corresponds to a monthly pension loss of EUR 28.80. According to the DRV, an early retiree would have to pay an amount of around 6,749 euros into the free government money for individuals pension insurance to fully compensate for the reduction in pension.
With a calculated pension of EUR 1000 per month and two years early start of the pension, the reduction is 7.2 percent. To compensate, around 17,527 euros are to be spent.
If you want to retire three years earlier with a pension of 1200 euros per month, you have to be satisfied with a pension of 1070.40 euros. The formula is: 36 x 0.3% = 10.8% of 1200 € = 129.60 € monthly pension loss. This reduction of almost 130 euros in pension can be compensated for by a one-time payment of around 32,821 euros . However, if you only want to retire a year earlier, you have to spend 10,123 euros.
These are sometimes considerable sums that potential early retirees have to pay into the pension fund in order to be able to retire early without a discount.
However, the compensation payments to the pension fund can be extended over several years and annually divided into two installments. This is how affordable amounts come about. Another decisive advantage: Citizens can claim the deposits as special expenses in a tax-reducing manner.

The maximum tax deductible contributions increase annually. In 2020, a maximum of EUR 25,046 per year for single persons and EUR 50,092 for married / registered life partners can be claimed as pension expenses . The tax office accepts 90 percent of these amounts - so there are "only" deductible amounts of 22,541 euros for singles and 45,082 euros for married people, which are accepted as special expenses .