Finance — Personal-finance

Opportunity to serve as a volunteer in the retirement sector?

Living at home for extended periods due to childcare responsibilities can lead to reduced current income and future pension savings. Consider boosting your financial security through voluntary contributions.

, and Administrator

2025 September 16 . 12:51 AM

2 min read

Desire to contribute as a volunteer for senior citizens' programs?

Opportunity to serve as a volunteer in the retirement sector?

In a recent advisement, Dirk Manthey of the German Pension Insurance emphasised the importance of making informed decisions when it comes to voluntary pension payments, especially for parents and those who are unemployed.

Firstly, it's essential to know that voluntary contributions to the pension insurance can significantly impact your future pension. Paying the maximum voluntary contribution for one year will result in approximately 78 euros more per month in pension. However, paying the minimum voluntary contribution of 103.42 euros per year will only increase your pension by around 5 euros per month.

For parents, applying for child-rearing periods in the first three years after birth is an option. During these periods, the state pays the pension contributions based on an average income of around 50,493 euros per year in 2025. It's worth noting that only low-income earners can benefit from a top-up of contributions during these periods, up to the current average income.

After the first three years, child-consideration periods can be applied for until the child's tenth birthday. These periods count towards the old-age pension, but no further contributions are paid after the child-rearing period. It's important to note that those who do not work at all during child-consideration periods receive no contribution.

Manthey advises couples to calculate the cost-benefit of voluntary pension payments, particularly when unemployed. He recommends seeking advice from the pension insurance before making such contributions to ensure they are worthwhile.

The amount of pension received is directly proportional to the amount of voluntary contributions made. Therefore, Manthey recommends a voluntary pension insurance contribution of approximately 150 euros per month to achieve a sufficiently high pension entitlement.

It's also important to remember that voluntary contributions to the pension insurance are not limited to child-rearing or child-consideration periods. However, those who only pay the minimum voluntary contributions will receive a lower pension.

The DRV provides information on the increase in pension due to voluntary contributions. For more detailed advice, it's recommended to contact the German Pension Insurance directly.

In conclusion, making voluntary pension contributions can be a wise decision, but it's crucial to understand the implications and seek advice before making any decisions. By doing so, individuals can ensure they are making the most of their pension entitlement and securing a comfortable retirement.