Child-rearing period: An increase of up to 122 euros per month in the pension
Parents raising children in Germany can significantly increase their future pension income, as periods of child-rearing are officially counted towards pension entitlements, potentially adding up to 122 euros per month for each child within the statutory pension system.
According to the rules of Deutsche Rentenversicherung (German pension insurance), parents receive pension points for the time they spend raising children. These periods are counted as insured working years, which helps individuals meet the requirements for receiving a pension even if they temporarily stop working to care for children. Typically, a minimum insurance period of five years is required to qualify for a pension.
The duration for calculating child-rearing depends on the year of the child's birth. For children born before 1992, up to 30 months of child-rearing periods can be counted, while children born from 1992 onwards can count up to 36 months. These periods start from the month following the child's birth and can be extended if another child is born during the same period.
During these years, the German government pays pension contributions on behalf of parents as if they were earning the national average income. Each year of raising children grants approximately one pension point, currently valued at 40.79 euros per month. This means that parents of children born after 1992 may receive about 122.37 euros extra per month, while parents of children born before 1992 receive about 101.98 euros per month.
These benefits are granted in addition to the income generated from work, provided that the total contributions do not exceed the current maximum contributions of 8,450 euros per month. The government has also approved a new reform known as 'Mütterrente III' (Mother's Pension III), which aims to eliminate the disparities between children born before and after 1992 by recognizing up to 36 months of childcare periods for all children.
Periods of child-rearing are automatically recorded in the mother's pension account, but they can be transferred to the father with the consent of both parents and by submitting a joint application using the official forms. Eligibility is not limited to biological parents only, but also includes adoptive or foster parents or spouses, and in some cases grandparents or relatives who have taken primary responsibility for raising the child, provided that the child-rearing has primarily taken place in Germany.
The application must be submitted through Deutsche Rentenversicherung (German Pension Insurance) along with the required documents such as children's birth certificates. However, government employees covered by separate pension schemes, as well as parents who are already receiving a full pension during the period of raising children, are exempt.
In addition to child-rearing periods, parents can benefit from Kinderberücksichtigungszeiten (child care consideration periods) for up to ten years after the child's birth. Although these periods do not grant additional pension points, they help avoid gaps in the insurance record, support meeting retirement conditions, and may allow for early retirement. As with child-rearing periods, these periods are usually recorded first in the mother's name.