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Pension: Extra money thanks to raising children - Here's how

2021-11-04T04:25:05.156Z


In bringing up their children, parents often lose valuable working time for later retirement. But a compensation creates a remedy.


In bringing up their children, parents often lose valuable working time for later retirement.

But a compensation creates a remedy.

Berlin - So that parents do not have any financial disadvantage due to their child’s upbringing, this is included in the calculation of the statutory pension *.

However, there are a few important points that parents should be aware of in order to actually receive the money for the child-raising period later on.

Pension: More money thanks to parental leave - parents have to look after themselves

“We know that bringing up children takes time - including your working hours.

That is why we ensure compensation and count certain times during the child-rearing period as if you had paid your own contributions, ”writes the German Pension Insurance (DRV) on its website.

However, this compensation must be requested.

To do this, entitled persons must fill out form V0800 from the German Pension Insurance.

The application can be made up to retirement * - i.e. years after the actual parental leave.

How much parental leave is allocated depends on the child's year of birth.

If the offspring was born before 1992, the parents are credited for up to two years and six months per child.

For all children born after 1992, the time is up to three years.

Parental leave: This is how much the pension can increase

The credited parental leave then has a direct effect on the later pension.

One year of child-rearing time increases the pension as if the mother or father had earned on average during this time and paid pension contributions.

So in the end, a year of parenting makes about.

30 euros pension per month.

Also important: If parents continue to work during the parental leave, they receive the money in addition to the demands from the job.

Here, however, a maximum limit, the so-called contribution assessment limit, must be observed.

The gross income that exceeds this limit is not taken into account when calculating the later pension.

Thus, top earners hardly benefit from the advantage of the parental leave.

“Employees with a gross monthly salary of around 3,640 euros in the west and 3,420 euros in the east no longer receive the full entitlement for upbringing,” explains

Stiftung Warentest

.

Anyone who is self-employed and does not pay into the pension scheme receives the full entitlement to raise children - regardless of earnings.

Pension & parental leave: Parents can decide for themselves who makes the claim

In principle, parents are free to decide which of the two parents is to be credited with the parental leave.

In the end, however, only one parent can take advantage of the benefit at a time.

Here, the legal guardians can see whether the father or mother earns more on the job *.

Then it is worthwhile for the parent who earns less to apply for parental leave.

In this way, it may be possible to avoid exceeding the maximum limit.

In principle, the mother has the right to parental leave.

If the couple wants to change that, the pension insurance needs a joint, consistent explanation for this.

But be careful: the declaration is only possible retrospectively for a maximum of two months.

Parents-to-be should therefore think about this early on.

But not only biological parents can claim that the parental leave is taken into account.

Adoptive, step-parents or foster parents can also apply for this benefit.

The same applies to grandparents or relatives if the child lives there permanently in the same household as a foster child.

Then, however, there may no longer be any custody or parenting relationship with the biological parents.

(ph) * Merkur.de is an offer from IPPEN.MEDIA

List of rubric lists: © Ute Grabowsky / photothek.net / Imago Images

Source: merkur

All news articles on 2021-11-04

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