What's the Deal with No Work, No Pension? All About Basic Security in Germany
- Written by Matthias Urbach
- ⏱️ approx 3 minutes read
Uncontributed Retirement Benefits: Amount Sought When No Payments Have Been Made - Unemployed and seeking pension: what's the payout if contributions were missed?
Let's cut to the chase: If you've no work history, expect no pension.
However, parents who have raised more than one child may have a Niche Pension Claim. This happens because the pension insurance recognizes child-rearing work. Details coming up.
Nevertheless, fear not! The state has provisions for those unable to support themselves. They're either eligible for Citizen's Allowance (formerly "Unemployment Benefit II" or "Hartz IV") if they're of working age, or they can opt for the Basic Security.
When Pension is Insufficient, Basic Security Steps In
In essence, Basic Security is a pension for those who haven't saved enough for their golden years or have no other means to secure their old age. The German Pension Insurance has a rule of thumb: If a monthly income is less than €1,062 (2025 estimate), an entitlement to Basic Security should be checked.
The conditions for Basic Security are similar to those for Citizen's Allowance and are applied through the Social Welfare Office in your residence. Interestingly, you can also file the application directly through the Pension Insurance - it will just forward it to the Social Welfare Office. The Basic Security is granted for a year, so you'll need to reapply annually.
Maintenance Obligations & Parents' Support
The state considers your assets while awarding Basic Security. However, certain items like cash up to €10,000, reasonable household goods, and heirlooms with values greater than their monetary worth are disregarded. Plus, a home or apartment is excluded, provided it's reasonable with respect to the state's contribution to maintenance.
As for the not-so-worked individuals, remember, any income counts when it comes to Basic Security: Maintenance payments, rental income, interest, life insurance payouts, or widow's pensions - all are offset against your claim.
The German Pension Insurance & Basic Security
The German Pension Insurance has published a comprehensive guide about Basic Security. Feel free to download the PDF here.
Pension Claims through Child-rearing
As mentioned earlier, parents can claim a pension even without professional work: child-rearing periods! Usually, the mother gets credited with three pension years per child (or two and a half years for children born before 1992). However, credits for multiple children can be split between parents. The focus should be on the parent primarily caring for the child. Also worth noting: these pension years are applicable only if the parent doesn't have other childcare claims, such as those held by civil servants.
A Sizable Boost, But Not Enough for Opulent Living
A parent with four child-rearing years can earn a maximum Basic Security of €451 (estimated April 2024, subject to changes). For further information, visit the official DRV (German Pension Insurance) website.
- Basic Security
- Pension
- Children
- German Pension Insurance
- DRV
- Retirement Provision
- Pension Claim
- The German Pension Insurance recognizes child-rearing work for Niche Pension Claims, providing a vocational training opportunity for parents who have raised more than one child.
- In Germany, if one's pension is insufficient, Basic Security can act as a safety net, offering a monthly income of less than €1,062 (as of 2025 estimate).
- For those not eligible for a work-related pension or Citizen's Allowance, personal-finance options like the Basic Security can be claimed through the Pension Insurance, though it may require a reapplication annually.
- The German Pension Insurance grants Basic Security to parents considering their assets, with certain items like cash up to €10,000, reasonable household goods, heirlooms, and a home or apartment excluded from consideration.
