Entitlement to a pension without work: How high is the basic security and who can apply for it?

Entitlement to a pension without work: How high is the basic security and who can apply for it?

According to a report by www.mainpost.de Employees usually pay into the German pension insurance in order to receive a pension when they retire. However, the amount of the pension is different for people who have never worked. According to the German Pension Insurance, entitlement to a pension only exists after a waiting period of at least five years during which payments have been made to the pension fund. Therefore, people who have always been unemployed and never worked are not entitled to a pension.

However, these people can apply for basic security, which is financed with tax money. There is also additional support in addition to basic income for housewives who have taken care of raising children and taking care of the household. Basic security is aimed at people whose living expenses cannot be covered by their income. The amount of basic security depends on income and assets.

It is important to note that the pension must always be applied for and is not automatically added to the account. Pensioners should also file a tax return to avoid penalties.

The effects on the market or the financial industry can be diverse. People who have never worked and are not entitled to a pension are usually dependent on basic state security. This can lead to an increased burden on state social systems. This can also have an impact on these people's retirement planning and consumption habits.

It is advisable to start thinking at a young age about whether you will have enough money when you get older. You can improve your future financial situation with the help of a part-time job or by making voluntary contributions to pension insurance. Applying for grants and using the hardship fund can also provide support.

Source: www.mainpost.de