Lawful retirement provision
Lawful pensions are still the basis of retirement arrangements. However, how long they will stay in that position in their current form is uncertain. After all, every so often, discussions occur about the establishment of other pension schemes. In the German pension scheme, three things need to be distinguished: the pension for the bereaved to prevent financial hardship because of death of the spouse or the parents, the pension for the elderly, and the pension for reduction in earning capacity.
How high the pension for the elderly is depends on how high the sum of the provided contributions that one has made to the pension fund during one’s adult life is. If one retires before the lawful retirement age, the rent decreases accordingly. One can inform oneself through the different social security administrations about how high the anticipated pension supplies currently are.
