Don't Count on Pension if You Haven't Worked
Non-career Retirement Income: Amount for Those With No Contributions Made - Unemployment and Pensions: The Amount owed for Untaxed Income
Let's Cut the Bullshit: If you haven't stepped foot in the workforce, don't expect a shiny retirement pension.
There's a silver lining for parents who've been busy raising multiple kiddos, though. They can score a pension claim since child-rearing is recognized by the pension insurance. More on that juicy bit below.
Still, the government ain't heartless. They've got a safety net for individuals who find themselves swimming in unemployment waters before retirement age. This one's called the Citizen's Allowance (formerly, "unemployment benefit II," colloquially known as "Hartz IV"). If none of that rhymes for you, there's always the basic security you can fall back on.
Low Pensions? Basic Security's here to help
Imagine your pension is leaving you hungry and begging for more. Well, the German Pension Insurance gotchu covered with basic security, a safety net for those who haven't saved enough for grand retirement or who haven't got any pension to speak of. They suggest you check your entitlement if you're living with less than €1062 a month.
Much like Citizen's Allowance, you gotta apply for basic security at your local social welfare office. Sometimes, you can even apply directly at the pension insurance, but they're just gonna pass it on to the welfare office anyway. Once approved, the benefits are yours for 12 glorious months. Remember, you gotta reapply every year!
Maintenance obligations and other drama
The German government ain't a pushover when it comes to grants. They'll first ask you to exhaust your assets before they hand over any cash. Folks with more than €100,000 gross annual income might find themselves facing a maintenance obligation towards those receiving basic security.
Not just assets, but income comes under scrutiny, too. With no working history, you're likely devoid of sources of income. But don't fret, maintenance payments, rental earnings, interest, life insurance, or widow's pensions all count if they do exist.
The German Pension Insurance has laid down all the nitty-gritty details in their brochure, which you can grab here.
Children = Pension points
As mentioned earlier, parents who've never worked can still squeeze out a pension with the help of their spawn. It's all about these fancy things called child-rearing years. If you've got more than one kid, the pension insurance grants you three years for each tot. Moms usually score these points, but it can switch sides depending on parenting roles.
If a mom or dad gains five child-rearing years, they've earned a pension claim. These points are almost as valuable as working for an average wage. They ain't exactly gonna shoot you a ticket to the penthouse, but it's better than nothing, right? Yet, even 12 child-rearing years might not catapult you above basic security. The pension insurance caps support for parents at €451 per month for four kids (effective April 2024). For more facts, check it out here.
- Citizen's Allowance
- Pension
- Children
- Basic Security
- German Pension Insurance
- Grundrente
- Pension Claim
- For parents who haven't worked, there's a possibility to make a pension claim through the recognition of child-rearing years by the German Pension Insurance.
- If your pension is insufficient for a comfortable retirement, the German Pension Insurance offers basic security as a safety net for those who haven't saved enough or have no pension.
- For individuals deprived of sources of income due to limited work history, maintenance payments, rental earnings, interest, life insurance, or widow's pensions can contribute to eligibility for basic security benefits.
- If you've raised more than four children and have earned five child-rearing years, you can make a pension claim, which, while not being as valuable as working for an average wage, is better than nothing.
