Parents can have the so-called child-rearing periods credited to their pension. How much money is involved and how to apply for the contract, we explain here.
Educating children and helping them grow up takes time. Time that in the vast majority of cases is lacking elsewhere, for example at work. As a result, mothers or fathers receive less or even no salary at all – and thus automatically pay less into the statutory pension insurance. This is a major disadvantage, which even in today's times still mostly affects women, as they often take over the majority of child care. As a result, the mothers' pensions in particular are significantly reduced. But there is also good news: the child-rearing time can be credited to your pension – if you apply for it. By the way: In Germany, many low-income families are entitled to the child allowance (in addition to child benefit).
Child-rearing pension: this is how much money you are entitled to
Child-rearing periods are compulsory contributions and have a direct impact on the amount of your pension. According to the German Pension Insurance, during the time you are raising your children, you will be treated "as if you had paid contributions based on the average earnings of all insured persons." Converted, this amounts to about 34 euros pension per month.
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Anyone who goes to work in addition to raising children, for example in a mini-job, also receives these contributions. And in addition to what is paid in itself. This applies up to the contribution assessment ceiling.
Pension: Entitlement to child-rearing leave
Almost all parents, including adoptive, stepparents or foster parents, who have cared for their offspring in the first 30 or 36 months after birth can claim child-rearing leave. Important here: According to the German Pension Insurance, this time can only be taken by one parent at a time. It is true that the person who mainly educates the child in the month gets the time credited.
The child-rearing period cannot be credited to persons who ...
- ... who have reached the standard retirement age and have never paid into the statutory pension insurance.
- ... who already receive a pension or full retirement pension while raising their children.
- ... have acquired pension entitlements in another pension scheme by raising children.
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An exception applies to mothers and fathers, who earn a particularly high amount as employees subject to social security contributions. For them, the pension does not increase as a result of raising children. As a guideline, the contribution assessment ceiling of the statutory pension insurance (7,300 euros per month in the west and 7,100 euros in the east) applies. Incidentally, this does not apply to self-employed top earners such as doctors or lawyers: they receive "the full entitlements from child-rearing time regardless of the amount of earnings," Stiftung Warentest points out in a blog post.
How to apply for the pension for raising children?
Unfortunately, this does not work automatically with the pension for raising children. It must be applied for separately. The form for this is called V0800 and can be downloaded from the pension insurance. Even if parents could theoretically take their time with this application until their own retirement, Stiftung Warentest recommends making it early. This helps, for example, in estimating the amount of one's own retirement provision.
Caring for and raising children – this period can be credited proportionately towards the pension and is called child-rearing time. (Symbolic image) © Janine Schmitz/photothek.de/Imago
How much are the pension supplements for children exactly?
For children born before 1992, the parents are credited with 30 months of parental leave and are rewarded with 2.5 pension points. According to Warentest, this is around 90 euros in the old federal states, and around 89 euros in the new ones. For children born after 1992, 36 months of parental leave are credited – for this there are three pension points (approx. 108 euros in the old, approx. 107 in the new federal states).
By the way, child-rearing pension and maternity pension are two different things. The latter merely refers to the increase in the credited child-rearing period for children born before 1992 from twelve months to 30 months today.