Early retirement in Germany: leaving sooner and what it costs
Early retirement (Frührente) is not a legal term but a label for several routes before the standard age. The calculator shows what the reduction costs over the years.
Worked through by Radif Partners · Editorial policy · How we calculate
Early pension: what the reduction costs
Reduction
7.2 %
| Less a month | €115 |
| Less over 20 years | €27,648 |
| Later start catches up after | 25.8 years |
Early retirement (Frührente) means any German old-age pension that starts before the standard retirement age (Regelaltersgrenze). The law offers three routes: the pension for long-term insured persons after 35 years from 63, the pension after 45 years with no reduction two years before the standard age, and the pension for severely disabled people, from 62 at the earliest for the 1964 cohort onwards. The disability pension for reduced earning capacity (Erwerbsminderungsrente) is a separate route that depends on health rather than age. Leaving early costs 0.3 % per month under section 77 of Book VI of the Social Code, for life: two years cost 7.2 %, which on a €2,000 pension is €144 a month. On top come the pension points you no longer earn in the time you gain. Net of contributions and tax the gap is somewhat smaller, because an earlier start year means a lower taxable share. You can apply at the earliest one year before the start.
The routes into early retirement
Which routes are open depends on your insured years and your health; the dates depend on your date of birth. The table shows every old-age pension for someone born on 15 October 1965, whose standard age is 67 years:
| Pension type | Condition | Earliest start | Reduction then | Unreduced from |
|---|---|---|---|---|
| Long-term insured | 35 years | 1 November 2028 | 14.4 % | 1 November 2032 |
| Severely disabled | 35 years, disability degree 50 | 1 November 2027 | 10.8 % | 1 November 2030 |
| Especially long-term insured | 45 years | 1 November 2030 | 0.0 % | 1 November 2030 |
| Standard pension | 5 years | 1 November 2032 | none | 1 November 2032 |
The legal basis is section 36, section 37 and section 38 SGB VI. If you meet several conditions you can choose; what counts is the reduction of whichever type is cheapest on the date you want. With 45 years and no disability status the cheapest early date is 1 November 2030; every month before that runs through the 35-year pension, with the reduction measured to the standard age. Insurance years in other EU countries, the EEA and Switzerland count towards the 35 and 45 years.
What each month early costs
The reduction (Abschlag) is 0.3 % per month under section 77 SGB VI and lasts as long as the pension. For an unreduced pension of €2,000:
| Earlier by | Reduction | Less a month | Less over 20 years | Head start until regular date | Later start catches up after |
|---|---|---|---|---|---|
| 12 months | 3.6 % | €72 | €17,280 | €23,136 | 26.8 years |
| 24 months | 7.2 % | €144 | €34,560 | €44,544 | 25.8 years |
| 36 months | 10.8 % | €216 | €51,840 | €64,224 | 24.8 years |
| 48 months | 14.4 % | €288 | €69,120 | €82,176 | 23.8 years |
The last column understates the real price, because stopping early also stops your pension points (Entgeltpunkte). An average earner gains one point a year, worth €42.52 of monthly pension since July 2026. Count two missing points for leaving two years early and the monthly gap is not €144 but €229.04, and the catch-up point moves from 25.8 to 16.2 years. Counted from the regular start at 67: if you stop at 65 and draw the pension beyond the age of 83, waiting would have paid more.
Gross is not net
The reduction bites a little less after deductions. Health and long-term care contributions are charged on the smaller gross pension (section 249a SGB V), and an earlier start year means a lower taxable share (section 22 Income Tax Act). For the October 1965 example, single, in the statutory health insurance and with no other income, the engine gives: starting at 65 through the 35-year pension with a 7.2 % reduction leaves €1,569.45 net; starting at 67 unreduced leaves €1,667.25. The gross gap is €144, the net gap €97.80. Try your own case in the net pension calculator.
Applying for early retirement
The pension does not start by itself. You can apply at the earliest one year before the start you want (German pension insurance). It begins the month after you reach the age if the application arrives by the end of the third calendar month after that; otherwise from the month you apply (section 99 SGB VI). If you plan to buy out the reduction, you first need a statement of the amount, issued from age 50, together with a declaration that you intend to retire early (section 187a SGB VI). The steps from checking your record to the decision are under applying for your pension.
Softer transitions
Between stopping completely and working full time there are two tools. A partial pension lets you draw only part of the pension early and limits the reduction to that part. A buy-out payment removes the reduction in whole or in part, also in instalments. If your health no longer allows work, look first at the disability pension under section 43 SGB VI, whose reduction is capped at 10.8 %.
What the reform would change
The pension commission’s report of 23 June 2026 recommends several changes that affect leaving early (Federal Ministry of Labour): the 35-year pension would start at 64, the unreduced 45-year pension would be abolished, reductions and increases would be reviewed regularly, and partial retirement would start at 58 instead of 55, without the block model. A new “protection pension” (Schutzrente) would cover people who can no longer do their long-held job for health reasons. All of these are proposals without a draft bill; follow the state of play under pension reform.