Partial pension in Germany: draw less, lose less to the reduction
Instead of taking the whole pension at 63 with the full reduction, you can draw part of it and keep the rest for later. A worked example shows what that achieves for someone winding down in Germany.
Worked through by Radif Partners · Editorial policy · How we calculate
Partial pension plus pay
Partial pension, gross
€700
| Share chosen | 50 % |
| Together with part-time pay | €1,900 |
| Part not drawn | €700 |
The part not drawn is paid later with the smaller reduction that applies then.
A partial pension (Teilrente) is an old-age pension of which you draw only part, at least 10 % of the full amount (section 42 SGB VI). It works with any old-age pension, including the pension for long-term insured persons from 63 after 35 years. Its advantage lies in the early-retirement reduction (Abschlag): it applies only to the part you draw early. The rest is paid later with the smaller reduction then due, or none if you wait until the standard retirement age. Example for someone born in 1964 with a full unreduced pension of €1,600: taking the whole pension at 63 pays €1,369.60 for life. Drawing half from 63 pays €684.80, and €1,484.80 from 67 once the other half is added. Since old-age pensions have had no earnings cap since 2023, the partial pension no longer protects against cuts; it is a tool for combining part-time work with a pension, often called “Flexirente”. Periods worked in other EU countries can help you reach the 35 years, but the German amount covers German periods only.
What a partial pension is
Every German old-age pension can be drawn in full or in part (section 42 SGB VI). The partial pension is not a separate pension type but a way of drawing one: you are entitled to an old-age pension, say from 63 after 35 years (section 36) or as a severely disabled person (section 37), and claim only part of it, at least 10 %. If you do not yet know your age limits, the retirement date calculator shows them.
What matters is how the reduction is split. The part drawn early carries the reduction for that early start, 0.3 % per month before the standard retirement age (section 77 SGB VI). The undrawn part is untouched and assessed only when you claim it, so its reduction shrinks with every month you wait.
Three routes from 63 compared
The example: born 15 June 1964, 35 insured years, full unreduced pension of €1,600 gross. The earliest start is 1 July 2027, unreduced from 1 July 2031, 48 months apart.
| Route | Pension 63 to 65 | 65 to 67 | From 67, for life |
|---|---|---|---|
| Full pension from 63 | €1,369.60 | €1,369.60 | €1,369.60 |
| Half from 63, rest from 67 | €684.80 | €684.80 | €1,484.80 |
| Half from 63, rest from 65 | €684.80 | €1,427.20 | €1,427.20 |
| 10 % from 63, rest from 67 | €136.96 | €136.96 | €1,576.96 |
The full pension from 63 carries 14.4 % for life. With half a pension, only that half carries it; the other half arrives at 67 with no reduction or at 65 with 7.2 %. The 10 % route comes closest to working on until 67 and keeps almost all of the pension unreduced, but pays only a small extra until then.
What the head start costs
By 67 the full pension pays out €65,741, the half pension €32,870. From 67, however, the partial route is €115.20 a month ahead, and it takes about 24 years to close the gap. On the numbers alone, the full early pension usually wins unless you live very long. The partial pension’s strength lies elsewhere: you can cut your hours without accepting the full reduction on the whole pension, and your tax bill stays lower in the years you still earn.
Part-time pay raises the later pension
If you work in employment alongside a partial pension and contributions are paid, you keep collecting pension points (Entgeltpunkte). They are added each 1 July of the following year (section 66(3a) SGB VI). On €25,000 of part-time pay that is 0.4813 points a year, and after four years €81.86 more monthly pension at today’s value. Old-age pensions have no earnings cap any more (German Pension Insurance key values), so a full pension plus pay would also be allowed. What is allowed alongside a pension, and what is tax-favoured, is on working while drawing a pension.
For expats winding down in Germany
A partial pension depends on qualifying for a German old-age pension first. For the route from 63 you need 35 years, and insurance periods in other EU and EEA states or Switzerland can be added to reach them. The amount, however, comes only from your German points: someone with 20 German years and 15 years in France may qualify at 63 yet draw a modest German partial pension. Whether your other country offers a comparable phased option depends on its own rules.
With a severe disability: earlier and cheaper
With a recognised degree of disability of at least 50, the pension for severely disabled persons is open from 62 for anyone born from 1964 and unreduced at 65. In the example the earliest start is 1 July 2026, with a reduction of at most 10.8 %. It too can be taken as a partial pension, with a correspondingly smaller cut. Details under pension with a severe disability.
Tax and contributions on a partial pension
Health and long-term care contributions come off a partial pension like any other, and it is taxable at the share for its start year (section 22 EStG): 84.5 % for a start in 2027. Because it is smaller than the full pension, more of the basic tax allowance stays free in the years you still earn. The net pension calculator gives the exact figure.
What the reform proposals could change
In June 2026 the pension commission recommended opening the 35-year pension only from 64 and allowing partial retirement schemes for employees (Altersteilzeit) from 58 instead of 55, without the block model (Federal Labour Ministry, 33 recommendations). These are proposals, not law; no draft bill has been published. If enacted, the earliest start for a partial pension after 35 years would move too. The state of play is on pension reform; the reduction calculator shows the reduction for any start month.