increased PENSIONS from 26.2 to 252 euros per month can be ensured by the insured who choose to extend their working life up to 40 years. Today, one in three insured retires with an early and reduced pension and suffers a cut of up to 30%. So the first tip is to avoid early retirement with a reduced pension to get about 130 euros per month.
According to social security experts, the biggest winners of the current system (apart from pensionable income) are those who leave with 40 years of insurance (and with the redemption of fictitious years) and have paid contributions. The more years one insures during the insurance decade 30.1-40, the larger the pension one receives. More important is the benefit of the five-year insurance period 35-40. For a 3,500 euro pensionable income, the increase in 40 years comes to 252 euros compared to today’s rates. Accordingly, for 1,000 euros of pensionable income, the increase will reach 72 euros compared to current rates. At the age of 35, the increase of 1,000 euros of pensionable income reaches 35 euros, while for 3,500 euros of pensionable income it rises to 123 euros.
Tax declarations: The period for retroactive salary – pensions
It should be noted that the pensionable income is calculated based on the average of the insured’s gross monthly income from 2002 to the month before retirement, where insurance deductions in the main pension sector are made. Months are calculated in 14 salaries due to gifts. The average is taken from the sum of the wages of the insurance months from 2002 onwards.
The exact pensionable earnings are calculated by EFKA when the pension application is submitted. However, each insured person can have an estimate, roughly calculating the average of his income based on data from his employer or from the individual insurance account, available in digital form on the EFKA website. The individual insurance account includes all contributions and earnings from 2002 onwards, so that the insured can calculate, at least roughly, his average earnings.
At the same time, thousands of insured people in the public and private sectors have a “golden” pension passport – by purchasing or recognizing fictitious years – so that they can retire up to 7 years earlier than the general -the age limit. Most policyholders use notional years to retire faster.
In fact, those who choose to buy fictitious years can ensure a further increase in their pensions, up to 100 euros per month, if there is an “exact” purchase of the “current” contribution (20% for the sector of pension) or with the high categories that freelancers have.
The periods that all insured persons can take advantage of are military service, periods of subsidized unemployment or sickness, and pregnancy and childbirth (a total of 119 days) for IKA-insured mothers. Military service and sickness unemployment are used for old-age pension at the age of 67 with a minimum time requirement of 15 years of insurance or 25 years if it is a DEKO-banks Fund.
The candidates Pensioners before submitting the application must:
- Get a pre-retirement certificate. This is a certificate that is submitted with the pension application and confirms the period of insurance of future pensioners in private sector funds (as if they were formed two years before the applicant reaches the retirement age limit), with the intention of not necessarily counting all the stamps but only those made since the issuance of the pre-retirement certificate and thereafter.
- To establish pension rights. The candidate secures the right to retire as long as he completes and completes the minimum required insurance time and the configured (for him) age limit.