Just retiring overnight? You shouldn't imagine the change from working life quite so easy. Here you can read what needs to be done in advance.

Berlin – Retiring: There is once again a lot of political discussion about when and how. In the future, the regular entry age of 67 years will apply. However, many want to enjoy their retirement sooner. Either way, prospective pensioners have a lot to do before the first retirement benefit comes into their account. An overview in seven steps.

Step 1: Clarify your retirement account

If you want to retire, the first question you probably ask yourself is whether you can afford to leave the workforce financially and when the pension regulations will allow you to get out of your job. The latter depends on age. As a rule, an entitlement to an old-age pension can only exist from the age of 63 at the earliest. The former is closely linked to the amount of the pension. In most cases, this information is provided by the German Pension Insurance Association (DRV) in Berlin.

It sends the so-called pension information to legally insured persons from the age of 55 every three years. It states both when someone can retire and under what conditions. In addition, the letter contains the insurance history. These are the times that count towards retirement and are therefore worth money.

Soon-to-be retirees should check the documents for absenteeism so that they can fill in gaps by submitting certificates or other evidence. The longer you wait with this account clarification, "the greater the effort to obtain the evidence," says Silke Pottin of the DRV. It is important to deal with it in good time. Account clarification and advice are advisable at least one year before the start of the new phase of life. This leaves room to fill gaps.

Step 2: Have your pension calculated

At the request of prospective pensioners, the insurance institution calculates how much the retirement benefit will be approximately. This is based on the pension periods documented in the account clarification.

Before applying, everyone should seek further advice, Pöttin recommends. For example, on the deductions that are incurred when retirement starts earlier, on possible compensation payments and on tax deductibility. However, it can also be a topic of pension periods acquired abroad that have either slipped through or entitle you to receive a pension abroad. The result is the gross pension. It deducts contributions to health and long-term care insurance as well as possibly taxes.

Step 3: Check your financial situation

At the same time, potential retirees are taking a look at the cash register. What are the costs, what will be incurred in the future? What's coming in soon? On the credit side, in addition to the pension, there can be savings, life insurance and Riester pension as well as company pension schemes. In addition, there are reduced expenses if travel costs and some insurance are eliminated.

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On the other hand, it is important to consider the need. "Do I want to travel, enjoy the garden, make major purchases or earn extra money in addition to my pension?" lists Ralf Scherfling from the consumer advice center North Rhine-Westphalia in Düsseldorf. Another aspect is housing. How much is the rent? Is there property that can be sold if necessary and the income can be lived?

They should do this at least a year in advance, but ideally in their early 60s. "The data for the new phase of life are then reasonably reliable, and you can use adjusting screws to prevent possible financial problems," explains Scherfling. After the start of retirement, these are almost impossible to absorb. His tip: If you expect larger amounts of money – for example from the Riester contract and life insurance – you should talk to your tax advisor and think about investing or spending.

Step 4: Talk to the employer

There is no obligation to inform the boss about the planned retirement. Nevertheless, he or she should be in the know. That's why soon-to-be retirees should seek the conversation. This is particularly appropriate if someone wants to continue working despite receiving a pension or if the employer expresses interest in doing so, says Silke Pottin.

Consumer advocate Scherfling points out modalities in the employment contract. It could state whether the employment relationship ends automatically at the start of retirement or whether the employee has to resign. In this case, the notice period must be observed. But when should you talk to your employer? Scherfling advises: "First clarify everything with the DRV, then talk to the employer."

Step 5: Apply for a pension

Today's last day of work, tomorrow the pension will automatically be credited to your account? It's not quite that simple. Rather, prospective retirees must submit a formal pension application. This is relatively easy after the elaborate preparations, because the formalities and the insurance account have already been clarified. Among other things, the pension insurance number, health insurance information, identity card, tax ID and IBAN are required.

The DRV recommends submitting the application three to four months before the targeted retirement date. "So that the pension is guaranteed to be paid out in the first month of retirement," explains Pottin. The pension can also be applied for three months retroactively, but then the money also flows retrospectively.

Step 6: Wait for the pension notice

The pension is secure as soon as the pension notice is in the mailbox. After that, prospective retirees can turn their backs on the office and the company with peace of mind. The letter should be there about a month before retirement. "If not, follow up," says Scherfling.

Step 7: Enjoy retirement

The pension notice has arrived and the first pension payment has been made in the account: the new phase of life can begin.