Pension for parents - This is how the child-rearing period pays off in retirement

Created: 05/30/2022, 05:11

By: Lisa Mayerhofer

There are some special benefits for parents in the state pension.

(Archive image) © Christin Klose/dpa-tmn

Those who work less to look after the children are actually at a disadvantage when it comes to retirement.

But there are some special benefits for parents that many are not aware of.

Berlin – The pension system does not work without young people.

But parents usually have to make do with a smaller state pension in old age because they have looked after their children and worked less or not at all.

Mothers in particular, who (still) do most of the child-rearing work in most cases, are affected.

Their pension is usually considerably smaller than that of childless women or men.

Small pension: Women worry about poverty in old age

A current survey of old-age provision by the German Institute for Wealth Creation and Old-Age Insurance (DIVA) revealed that women worry about poverty in old age at 66.2 percent, which is far higher than that of men (53.9 percent).

According to Professor Michael Heuser, Scientific Director of DIVA, the women's concerns are understandable: "The discrepancy is plausible.

Because women receive around 30 percent less monthly state pension on average due to different employment biographies.

In addition, because of their three to five years longer life expectancy, their need for provision is greater than that of men.”

A “different employment biography” refers, for example, to the child-rearing periods during which the women or mothers do not work at all or work less to look after the offspring.

However, there are special benefits for parents for the statutory pension, which they can have credited and thus improve.

An overview:

Pension for parents: apply for child-rearing leave

A break from work due to child-rearing can be counted towards the pension insurance.

However, the parents must apply for child-rearing leave before they retire.

This works with the form V0800 from the pension insurance.

In addition to the biological parents, adoptive, step- or foster parents can also apply for child-rearing periods – and self-employed and freelancers who do not pay into the pension insurance are also entitled to this.

However, only one parent can be credited for child-rearing time – however, it is possible to split it up.

The child-rearing period increases the pension roughly as if the mother or father had continued to earn the same average income and paid contributions after the birth as before.

If the children were born before 1992, the child-rearing period is 30 months, for children born later it is 36 months.

Pension: There are supplements for the child up to a maximum limit

For each child there are earnings points on the pension account - according to Stiftung Warentest for children who were born before 1992, 2.5 points and for children born later about three points.

According to Stiftung Warentest, this increases the pension for a child-raising period for a child born before 1992 by almost 85 euros per month.

With two children it is 167 (East) or 171 Euro (West) per month.

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If the children were born after 1992, according to Stiftung Warentest, it is around 100 or 103 euros a month for one child and 201 or 205 euros a month for two children.

However, the amount is lower if the parent in question earns above average, i.e. from a gross salary of 3640 euros per month (3420 euros in the East).

Above a maximum limit, there are no more surcharges.

This applies if the gross income is above the contribution assessment limit of the statutory pension insurance (7050 euros per month in the west, 6750 euros per month in the east).

By the way: Parents who work while they are raising children receive the pension points in addition to the entitlements from their gainful employment.

What is the mother's pension?

The mother's pension refers to an improvement in performance in the statutory pension insurance for parents whose children were born before 1992.

It was introduced on July 1, 2014, when the child-rearing period was extended from 12 to 24 calendar months.

Since January 1, 2019, all parents with children born before 1992 have had 30 months per child.

(For comparison: for children born later it is 36 months)

Pension: What else is there for parents

The so-called child consideration time is also interesting for parents.

This means that the pension insurance can calculate the first ten years after the birth of the child as the time under pension law.

This helps parents to accumulate insurance years, for example to be able to retire earlier.

In the case of low earners, the child allowance period also tops up the pension.

In addition, there is a supplement to the survivor's pension for the parent who has been raising children after the death of their spouse.

However, this can vary greatly depending on the situation.

It is best for parents to obtain information early on from social organizations or the German pension insurance.