I have been working as a senior scientist at a large pharmaceutical company for over 15 years. As part of a restructuring, the company is cutting jobs. I am also affected. To mitigate the consequences of the termination, the employer has offered me an extended notice period and severance pay.
I am 58 years old and I am wondering: What options are open to me if I no longer look for a new job? What is the best way for me financially?
To decide whether she can afford to retire, Felicitas must consider all options:
1. Early Retirement
Felicitas must clarify whether the regulations of her pension fund provide for early retirement from the age of 58. The fund can also tell her how much her pension will be if she retires at 58.
2. Buy into the Pension Fund
To supplement the pension, Felicitas can pay a contribution into the pension fund. The pension fund can tell her what the maximum amount can be. It makes sense for Felicitas to use her severance pay for this purpose. The pension fund regulations state whether this is possible.
3. Continue Insurance in the Pension Fund
At her request, Felicitas can continue to be insured with her pension fund to the same extent as before for a further two years. This is possible from the age of 58. In this way, Felicitas can continue to increase her pension assets and will then receive a higher monthly pension in two years.
Please note: The possibility of continued insurance only exists if the employment relationship is terminated by the employer. If you give notice yourself and take early retirement, it is not possible to remain in the pension fund.
4. Drawing Unemployment Benefits
If Felicitas F. takes early retirement, she can still register with the unemployment insurance fund to receive unemployment benefits. If an employee is dismissed for economic reasons and decides to draw a pension, the unemployment insurance fund considers this to be an involuntary early retirement. It credits the prematurely retired employee with the full contribution period. She is therefore entitled to the full daily allowance. The pension from the occupational pension plan is then deducted from the unemployment benefits.
Felicitas now knows what options are open to her. She can decide whether she wants to retire or not.
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