Unemployment? No Pension for You! How to get a retirement pension if you've never had a job
- written by Matthias Urbach
- ⏱️ Approx. 2.5 minutes read
Annual Pension Amount for Lifetime Non-Contributors Revealed - Penalty for idleness or pension default: Consequences in Store
In plain English: If you've never worked a day in your life, you can't claim a retirement pension.
However, there's a loophole for parents who've raised more than one kid. These individuals can potentially claim a pension entitlement because the pension system acknowledges parenting as work to some extent. Here's the lowdown on that.
- Pension
- Social Security
- Retirement Provision
- Pension Entitlement
A Quick Overview of Pensions
Pension systems don't traditionally take into account the number of children a parent has raised when calculating pension entitlements. Instead, they usually consider factors such as the parent's work history, income during their working years, and type of pension plan. But let's not forget about benefits for kids! Some social security or survivor benefit programs provide such perks. Here's the nitty-gritty:
Parenting Simplified: Benefits for Kids
- Basic Pension Calculation: This is usually based on earnings and years of service. The number of children doesn't directly affect the basic pension amount.
- Survivor Benefits: These come into play when a parent kicks the bucket. Survivor benefit systems (e.g., U.S. Dependency and Indemnity Compensation, Canada Pension Plan children's benefits) will often provide payments to dependent kids. These payments are not necessarily tied to the number of children but rather to the child's dependency status and program guidelines.
- Additional Benefits: Some programs offer increased payments for families with multiple dependents. For instance, the U.S. Veterans Affairs boosts Dependency and Indemnity Compensation (DIC) for surviving spouses with dependent children, providing additional funds per child[2].
Child's Play: Examples of Benefits for the Little Ones
- Canada Pension Plan (CPP) Children's Benefits: Offers a flat-rate payment to dependent children under 18 or aged 18-25 if they're full-time students. The payment remains the same, regardless of the number of children[5].
- U.S. Veterans Affairs Dependency and Indemnity Compensation (DIC): Adds a specific amount for each dependent child. So, the more kids you've got, the more you can cash in[2].
In conclusion, pension entitlements themselves are not directly impacted by the number of children you've reared. But other benefits for children can be influenced by the number of dependents in some programs. So, start working, folks, if you want a nice retirement!
- The community policy could consider expanding the pension entitlement to include vocational training as a form of work, which could potentially benefit individuals who haven't worked traditionally but have gained skills through vocational training.
- Personal-finance experts suggest that parents, while focusing on their children's education and upbringing, should also consider investing in personal-finance avenues such as vocational training to secure a better financial future, as pension entitlements may not be directly affected by the number of children raised.
