- by Matthias Urbach
- 3 Min
No Retirement Benefits for the Unfunded: Estimated Amount for Unpensioned Individuals - Unemployment and Pensions: The Amount Received if Contributions were Neglected
Let's cut to the chase: If you've never held a job, you won't receive a pension.
There's a loophole though, for parents who've reared more than one child. They can acquire a pension claim since the pension insurance acknowledges domestic work. More on that later.
Still, the government assists citizens who can't fend for themselves. They might qualify for social assistance, formally known as "unemployment benefit II", colloquially known as "Hartz IV". This benefit is granted to anyone who's capable of working but hasn't yet retired. All others can apply for the so-called basic support.
When Basic Support Kicks In
Basic support, in essence, is a pension for those who've worked insufficiently to live on their pensions or haven't prepared for their old age. The German Pension Insurance suggests, as a rule of thumb: If you can't live on less than 1062 euros per month, you should check your entitlement to basic support.
The requirements for basic support are similar to those for social assistance - and both benefits need to be applied for at the local welfare office. Exceptionally, you can also apply for basic support with the pension insurance, who will then forward your application to the welfare office. If granted, basic support is paid out for twelve months. The application must be resubmitted yearly.
Parents' Maintenance Obligation
The government links social benefits to the recipients exhausting their assets first. Moreover, parents or children may be called upon for maintenance support if they earn more than 100,000 euros gross.
Not all assets need to be exhaustible for basic support: Cash up to 10,000 euros, reasonable household items, and personal heirlooms with significant sentimental value are excluded. A dwelling is also exempt, provided it's reasonable considering the state's assistance.
Not only assets but also possible income is considered during basic support calculations. In our scenario, since you've never worked, here's a heads up: Maintenance payments, rental income, interest, life insurance, or widow's pensions - they're all deducted from your claim.
The German Pension Insurance has put together a brochure on the specifics of basic support. Here is the link to the PDF download
Parents Often Have a Pension Claim
As mentioned, parents can stake a pension claim even without any professional work experience: the so-called child-rearing periods. For each child, one of the two parents earns three years of pension - usually the mother. If the child was born before 1992, it's only two and a half years of pension time. Parents with five years of pension time have already earned a pension claim; the German Pension Insurance (DRV) refers to this as a "waiting period". Important note: An application is required to receive the pension - the pension insurance speaks of the account clarification. This doesn't happen automatically.
Up to 450 euros Pension with Four Children
The three years per child, as mentioned, can only be claimed by one parent at a time. However, parents can divide the "waiting period" among themselves. It's about who primarily raises the child. The pension years are only available as long as neither parent has other caring responsibilities (such as civil servants). The child-rearing years are valued at roughly one contribution point. This means that the mother or father has the same pension claim as if they had earned almost the average wage. Nevertheless, even four child-rearing years (12 years) are not enough to earn a pension claim that surpasses the basic support. The pension insurance pays a maximum of 451 euros (projected for April 2024) to a parent who's never worked, for four children. More information from the DRV can be found here
- Social Assistance
- Pension
- Children
- German pension insurance
- DRV
- Retirement provision
- Pension claim
- Even though you won't receive a pension because you've never held a job, parents who've reared more than one child can acquire a pension claim due to the recognition of domestic work by the pension insurance.
- Citizens who can't work and haven't yet retired might qualify for social assistance, known as "unemployment benefit II" or "Hartz IV". Alternatively, those who've worked insufficiently to live on their pensions or haven't prepared for their old age can apply for basic support, acting as a pension for such cases.
- To apply for basic support, you can approach the local welfare office, or exceptionally, apply with the pension insurance who will then forward your application. If granted, basic support is paid out for twelve months, with the need to resubmit the application annually.
- Regarding parents, since they might be called upon for maintenance support if their income exceeds 100,000 euros gross, they can still make use of their child-rearing periods to earn three years of pension for each child. However, parents can divide the waiting period for the pension claim among themselves, with the pension insurance paying a maximum of 451 euros (projected for April 2024) to a parent who's never worked, for four children.
