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Marriage- and Family-Related Payments in Retirement: Important for Economic Stability of Families

Press Release of June 4, 2014

Family-related breaks in employment often lead to lower statutory pension entitlements, especially for retired mothers. Against this background, the legislation for marriage- and family-related payments has been designed to compensate for such deficits in old-age provision. These payments are directly related to old-age pensions and can be of relevant importance for the economic stability of families in retirement. This applies in particular to child-rearing periods and, to a limited degree, also to supplementary child allowance for widow's pensions and credited child-raising periods in relation to revaluation and bringing up several children. In contrast, credited child-raising periods have less relevance for the entitlements of those retiring before the default retirement age.
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