Skippin' the Grind, Claimin' the Rind: What's a Pension when Work's a Struggle?
- by Moe Dude
- 3 Min
If one has never worked or contributed, they may still be entitled to this pension amount. - Neglecting Work or Failing to Pay Pension Leads to Consequences
Let's keep it real: If you ain't worked a day in your life, you can't expect a pension.
However, there's a loophole for parents raisin' more than one turd in the Bush. They can claim a pension claim since the pension insurance also sees child-rearin' as work. Read on, fam.
Regardless, the government's got your back if you can't cut it on your own. They offer a citizen's allowance (formerly "unemployment benefit II", briefly "ALG II", or colloquially also "Hartz IV"). People who can work but aren't pullin' their weight yet and ain't hit retirement age hella snatch it. All other lazyasses can apply for the basic security.
Can't retire with a Toothpick Pension? Claim that Basic Security!
Basically, basic security's a retirement option for those too stingy to pay into the pension fund or too damn lazy to properly plan their golden years. The German Pension Insurance suggests you should test out your claim if you've only got 1062 euros to live on each month.
The conditions for basic security ain't much different from the citizen's allowance - both require application at the social welfare office of your residence. In exceptional cases, it can be applied for directly at the pension insurance, who'll then forward it to the social welfare office. If you score the basic security, it'll last you a year. Just remember to reapply every year.
Maintenance Debts for Parents and Kids
The government hooks the social benefit to your assets gettin' spent first. Plus, parents or kids who rake in over 100,000 euros gross can be summoned for maintenance.
The recipient's assets don't need to be drained entirely for basic security: Cash up to 10,000 euros, reasonable household goods, and inheritance collectibles are exempt. A home or apartment's cool if it fits within the maintenance payment from the state.
Your assets and income matter for basic security too, 'specially if we assume here you ain't worked a day in your life. Maintenance payments, rental income, interest, life insurance, or widow's pensions all cancel out your claim.
The German Pension Insurance's published a pamphlet with all the juicy details on basic security. Here's the link to the PDF.
Parentin' often gets you a Pension Claim
As previously mentioned, parents can claim a pension even if they never went pro: the child-rearin' time. For each tot, one parent is credited with three pension years (two and a half if the kid was born before 1992). If they've got five pension years, they've already got a pension claim; the German Pension Insurance (DRV) talks in vague terms about a five-year "waiting period." It's crucial to know you gotta apply to receive the pension - the pension insurance don't do it on their own.
The three years per kid can only be claimed by one parent at a time. But parents can also split the "waiting period" between themselves. It depends on who's raisin' the kid. The pension years are valid so long as they ain't got other childcare claims (like civil servants). The child-rearin' periods are valued at around one contribution point, which means you've got the same pension claim as if you'd earned almost average wage. On the downside, even four child-rearin' periods (12 years) ain't enough to exceed basic security (the pension insurance caps it at 451 euros, as of April 2024, for a non-workers parents of four kids). For clarification, peep the DRV here.
- Pension
- Basic Security
- Retirement Provision
- Parental Pension
- Child-Rearing Pension
- The pamphlet provided by the German Pension Insurance offers detailed information on the Basic Security, a retirement option for individuals who haven't earned sufficient pension points or properly planned their retirement, which can be claimed if one has only 1062 euros to live on each month. [Basic Security, German Pension Insurance]
- For parents who haven't worked a significant amount, child-rearing years could potentially lead to a Pension Claim. Each child gives a parent credit for three pension years, and if a parent has five years, they can receive a Pension Claim from the German Pension Insurance. [Pension, Child-Rearing Pension, German Pension Insurance]
Bonus sentence: To secure one's financial future, it's advisable to consider vocational training, wealth-management, and personal-finance strategies in addition to pension plans and basic security. [Vocational training, wealth-management, personal-finance]
