Don't Fret About Pension, If You've Never Worked! Here's What to Know about Basic Security
by Me
- ⏱️ 3 Min. Read
Income derived from pension schemes for those who've never worked or contributed. - Ignoring work and neglecting pension payments can lead to such consequences.
Want the bottom line? If you've never held a job, you can kiss that pension goodbye.
However, there's a catch for parents who've brought up more than one kid - they might qualify for a pension claim. The pension system recognizes child-rearing as work, too. Let's chat more about this and your other options.
If you can't get a job and are under retirement age, the government steps in. They'll offer you the citizen's allowance (once called "unemployment benefit II," or "ALG II" for short, or simply known as "Hartz IV") or the basic security. Both benefits go to those able to work but without jobs. All others can apply for basic security.
Basic security: Retirement provision for the lifetime jobless
In essence, basic security serves as a pension for those lacking or unable to afford retirement savings. The German Pension Insurance suggests checking your eligibility if your monthly income is less than €1,062.
The requirements for basic security and citizen's allowance are quite similar. To claim either, head over to your local social welfare office. You can even send your application for basic security to the pension insurance, which will then forward it to the social welfare office.
Calling the Cops: Social Benefits and Maintenance Obligations
The state demands you exhaust your assets before receiving basic security. Parents or children earning over €100,000 might be asked to contribute to your maintenance.
Several assets are excluded when calculating your basic security, such as cash below €10,000, reasonable household items, and personal heirlooms with significant sentimental value. Your home or apartment is also excluded as long as it matches your share of the maintenance payment.
Income factors into the calculation, too. In your case, those without jobs, basic security considers maintenance payments, rental income, interest, life insurance, widow's pensions, and more.
The German Pension Insurance offers more info on basic security details - grab the PDF here.
Raising Champs, Getting Paid: Parental Benefits
Parents, here's the scoop on child-rearing pension claims: If you've never worked professionally, you can still claim pension years for child-rearing. Each child awards one parent three pension years (or two and a half if your child was born before 1992).
However, these years can only be claimed by one parent at a time. But, parents can split the "waiting period," depending on who primarily cares for the child. The pension years continue as long as neither parent has other childcare-related claims. One parent can have approximately the same pension claim as if they had earned the average wage from four child-rearing years.
But even with four child-rearing years, a parent might not receive a pension claim exceeding basic security. The pension insurance maxes out at €451 a month (from April 2024) for a parent without job history or employment. For more details, check out the DRV website.
- Pension
- Basic security
- Retirement provision
- Pension entitlement
Extra Insights:
Remember, if you're a parent who has never worked and raised multiple kids, your eligibility for basic security or social benefits may differ between countries. Most countries require work history or employment for paid parental leave benefits or employment-linked social security. However, you might access non-contributory social assistance programs or basic income supports based on local laws and social policies.
Some welfare programs exist specifically for parents who have raised multiple children, but these vary per jurisdiction, and none of the search results specify such provisions for parents who have never worked but have multiple children. To find out your exact benefits, consult local social security or welfare regulations.
- For individuals who haven't worked and lack a pension, alternative retirement provisions such as the community's basic security policy can be considered, particularly if their monthly income falls below €1,062.
- In addition to basic security, vocational training and personal-finance management can help individuals enhance their skills and financial wealth-management abilities, leading to self-sustaining means and a more secure future.
