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Buying out the German early-retirement reduction — compensation payment under SGB VI s. 187a

What is bought back are the pension points the reduction removes: points × (1 − access factor). Each lost point costs the contribution rate applied to the provisional average earnings — about EUR 9,661.58 in 2026 — divided by the access factor, because the point you buy back is itself reduced.

2026 rules — verified on September 23, 2026Free, no account

This content is part of the path: Retiring· Step 5 of 11· Next step: German pension taxation — taxable share and frozen exempt amount

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Sources and assumptions

Calculation assumptions

  • Take the total pension points at the intended start date from the statement issued under SGB VI s. 109(5); it already projects your future contribution periods (s. 187a(2)).
  • The calculation covers the pension for long-term insured people from 63 (SGB VI ss. 36 and 236) with the 35-year qualifying period met; the pension for severely disabled people and the miners' scheme are not covered.
  • Payment is assumed to be made in 2026: contribution rate 18.6 % and provisional average earnings of EUR 51,944. A later payment is priced at the values of its own year.
  • The pension insurance uses the conversion factors for pension-rights adjustment published by the federal labour ministry, which may disregard rounding (SGB VI s. 187(3)). The figure on your statement may therefore differ by rounding amounts.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.