- A light-hearted take by Matthias Urbach
- ~ 3 Min read
Unemployed or Contribution-less Individuals' Pension Amount Revealed - This translates to: "Expect consequences if you fail to work or neglect your pension obligations."
Wondering if a couch potato lifestyle can bag you a cozy pension? Well, newsflash: No work, no pension! But there's a silver lining for parents who've done their fair share of diaper-changing and celebrating milestones without a paycheck. Let's take a closer look.
The Pension Scene
First things first, if you've been shunning employment like it's a decade-old slice of broccoli, don't be counting on a pension.
But hey, there's a glimmer of hope for the kids-raiser cohort. If you've birthed and raised more than one mini-me, you might just earn a pension claim! That's right, child-rearing work is recognized by the pension insurance (albeit with a few conditions).
United States: VA Survivors Pension and Child Tax Credit
In the land of the free and the home of the brave, things might look a bit promising. For one, surviving spouses or kids of deceased veterans could be eligible for a VA Survivors Pension, known as Death Pension. You just need to have a history of war-time service, meet income and resource limits, and, importantly, be either the spouse or unmarried child of the deceased vet.
And if you've got kids under 18 (or 23 if they're in school) who rely on you, you might be eligible for the Child Tax Credit. But here's the catch. To qualify, you need to file a tax return and meet income requirements. If you've shied away from work and earned little to nothing, you might find that the Child Tax Credit's refundability is limited.
United Kingdom: Universal Credit
Heading across the pond, you'll find the UK's Universal Credit. For families with more than one child, it provides support, although the benefits for additional children are usually capped. However, there are exceptions for multiple births and non-consensual conceptions. To qualify, you need to be responsible for the children, meet income and savings limits, and reside in the UK without a work history. But don't forget, exceptions apply!
The Bottom Line
In summary, while no standard government pension exists in the US or UK for child-rearing without other qualifying factors, there are mechanisms in place to support low-income families with children, irrespective of work history. So, pick up those diapers, give those kids a hug, and dream of your future pension (if you're a parent, that is). Just remember to file those tax returns!
In the US, parents who have raised more than one child may be eligible for the VA Survivors Pension (also known as Death Pension) if they are the surviving spouses or unmarried children of deceased veterans with a history of war-time service and meet income and resource limits. Additionally, if they have children under 18 (or 23 if they're in school) who rely on them, they might be eligible for the Child Tax Credit, but income requirements and limited refundability may apply.
In the UK, families with more than one child may receive support through the Universal Credit, although benefits for additional children are usually capped. However, exceptions apply for multiple births and non-consensual conceptions. To receive this support, families must be responsible for the children, meet income and savings limits, and reside in the UK without a work history.
