Despite the gradual increase in the retirement age to 67, the pension is still possible from the age of 65 by the pension recipient deciding to start early and accepting discounts on his monthly pension to compensate. Severely disabled people do not have to accept a reduction in their pension entitlements when they start retiring at the age of 65.
A pensioner’s income
Whether a financial institution pays the desired loan for a pensioner aged 65 and over depends on the crediting of the individual income. In the case of domestic banks, it is customary to credit the statutory pension and the development pension (Riester pension), since these benefits are paid monthly and come from reliable sources. Private supplementary pension contracts often provide for bimonthly or three-month payments, but amounts that are not received monthly are not considered by many banks as income to be taken into account when making a loan decision.
The fact that pensioners often receive an additional income from work is only relevant to the loan decision in a few cases, as the lenders classify the part-time job as temporary. With a low standard old-age pension and additional income, a quick loan without proof of income is available as a loan for pensioners aged 65 and over. In this case, the pensioner must honestly state his income, but he can add up all the income and is not dependent on the bank’s decision on the recognition of individual income components.
General reservations against pensioners as credit customers
Some financial institutions openly state in their credit terms that they only accept working people and no pensioners as loan customers. Other credit banks grant a loan to pensioners aged 65 and over, but limit the term to a maximum at the end of the contract. An open statement of this age regulation violates the ban on age discrimination within the EU, while banks from Switzerland carry out such a rule.
As the risk of death and thus the credit default risk increases with age, financial institutions are more likely to grant a loan to pensioners aged 65 and over if their customer takes out installment protection insurance. A loan for pensioners aged 65 and over is also available on private loan brokerage websites, especially as private lenders take social considerations into account when making their decisions.