Ignoring the Regular 9-to-5? So, What's Your Retirement Plan If You Never Worked?
Generous Pension Received without prior Work or Contributions - * Nonpayment of pension leads to loss of benefits: Consequences for retirees who fail to work or pay their pension dues.
** AUTHOR: Matthias Urbach **** READING TIME: - Approx 3 minutes**
Let's cut to the chase: If you've been a perpetual slacker and never graced the corporate world with your presence, don't expect a pension.
But there's a loophole for parents who've raised more than one mini-me. The pension pot recognizes their child-rearing efforts, granting them a pension claim. Delve into the details below.
- Pension
- Basic Safety Nets
- Golden Years' Fund
- Parental Pension Benefit
Pension 101First off, a pension is usually tied to your work history and social security contributions. But if you've been lounging on the beach instead of clocking in, you can't bank on a pension.
Parental Pension PerksFor those who've been busy cooking, cleaning, and chauffeuring, there's hope. Parents who care for more than one child, even without the classic employment, can now stake their claim to a pension. Here's the catch: it's not a standard practice in most countries.
North American Scene
- United States: Sorry, folks! There's no pension benefit for those who've been taking care of the little ones while avoiding the daily grind. However, parents can qualify for other forms of assistance, such as Supplemental Security Income (SSI) if they are infirm or of a certain age[1].
- Canada: Alas, no direct pension benefit for parents based solely on the number of kids reared. Nevertheless, the Canada Pension Plan (CPP) doles out benefits for children in the event of a parent's disability or demise[5].
World on WheelsVarious countries offer family benefits or child allowances, but they're not exactly pensions[2][3][4]. More precise information is needed to weed out the details for other nations.
In essence, while there's no specific pension for child-rearing superstars who've never worked, several forms of social assistance might exist, depending on where you hang your hat[6].
In light of your unconventional career path, you might need to consider alternative methods for retirement. Vocational training, particularly in fields like wealth-management or personal-finance, could provide a stable income source during your golden years. Furthermore, vocational training could also equip you with the skills necessary to manage your finances effectively and potentially accumulate wealth, improving your retirement prospects.
