Widow’s pension – what exactly is it, and who is eligible for it?
In one of our recent blog posts „The surviving spouse’s inheritance – what exactly is that?“ We have explained the statutory entitlement of the surviving spouse. This blog post deals with the survivor’s pension – also known as a widow’s or widower’s pension, and referred to hereinafter simply as the „widow’s pension“ for the sake of simplicity – in the context of the death of a spouse.
The death of a spouse often results in financial hardship for the surviving partner. The widow’s pension is intended to provide some relief from this hardship. However, in order to be eligible for the widow’s pension at all, the deceased spouse must have paid into the statutory pension scheme for at least five years. This is often not the case for the self-employed and must be assessed on a case-by-case basis.
Pension in the quarter preceding death
Following the death of a spouse, the surviving spouse will, as a rule, continue to receive the deceased’s statutory pension in full for an initial period of three months. This applies even if the surviving spouse receives their own income during these three months. The surviving spouse’s own income is not taken into account when calculating the deceased spouse’s pension during this period. If the deceased had not yet been receiving a pension, the surviving spouse is entitled to the reduced earning capacity pension that the deceased would have been entitled to receive.
Widow’s pension
For the period following this, you can apply for a small or large widow’s pension.
The widow’s pension is paid only upon application, which must be submitted to Deutsche Post’s pension service. As the pension application is complicated and extensive, it is recommended that you contact the pension insurance advice centres or similar organisations for assistance.
A widow’s pension can be claimed retrospectively for up to twelve calendar months prior to the month in which the application is made. So, if the spouse died in December 2022, the pension will still be paid retrospectively for the entire period if the application is made in December 2023.
Advance payment
It is also possible to receive an advance payment equivalent to three months’ pension of the deceased, but an application must be made within 30 days of the death.
Full Survivor’s Pension
The conditions for receiving the full widow’s pension, which is payable for an indefinite period, are that
- the couple had been married for at least one year or were in a registered civil partnership,
- the deceased was already receiving a pension or had paid contributions into the statutory pension insurance scheme for at least five years (Section 50 of Book VI of the Social Code), although exceptions may apply if the spouse died unexpectedly (e.g. in a car accident), and
- the surviving spouse has not remarried.
In addition, it is required that
- the required age limit for the longer-living spouse (see below) has been reached, or
- the surviving spouse is bringing up a child who is under the age of majority, or
- the surviving spouse has a child with a disability, irrespective of the child’s age or
- the surviving spouse is partially incapacitated for work due to illness or disability.
Age limit
Since 2012, the age limit for the longer-living spouse has increased by one month each year from the age of 45. If one spouse dies in 2023, the surviving spouse must therefore be at least 46 years old to meet the required age limit. For deaths occurring from 2029 onwards, a standard age limit of 47 years will apply, Section 242a(5) of Book VI of the Social Code (SGB VI).
Amount of the full widow’s pension
The amount of the full widow’s pension depends on when the marriage took place:
Who to Anyone who married before 31 December 2001 receives 55% of the pension that the pension insurance scheme was paying, or would have been paying, to the deceased spouse at the time of death. A child supplement may also be payable in certain circumstances. If the spouse died before reaching the age of 65, the pension entitlement is reduced by a deduction.
Who before who got married on 1 January 2002 and If at least one spouse was born before 2 January 1962, the surviving spouse receives 60% of the pension that the pension insurance scheme was paying, or would have been paying, to the deceased spouse at the time of death. There is no child supplement in this case.
Small widow’s pension
If the conditions for the full widow’s pension are not met, the reduced widow’s pension may be considered; however, under the new legislation, this is limited to a period of two years following the death of the spouse, Section 242a(1) of Book VI of the Social Code (SGB VI). However, if the marriage took place before 1 January 2002, the small widow’s pension is paid for life.
The amount of the small widow’s pension is 25%, plus a child supplement where applicable.
Switching from a small widow’s pension to a large one
Anyone who does not meet the eligibility criteria for the full widow’s pension – for example, because they are too young – may switch from the reduced widow’s pension to the full widow’s pension at a later date. As soon as the surviving spouse reaches the relevant age (and all other eligibility criteria are met), they are entitled to the full widow’s pension. However, an application must be made for this change; it does not happen automatically. It is also possible to switch to the full survivor’s pension if the surviving spouse has had a child or has become partially incapacitated for work.
Child Supplement
Anyone who has brought up a child until the age of three and married after 31 December 2001 is entitled to a child supplement once the three-month period following the death has elapsed. The amount of this supplement depends on the type of widow’s pension, the federal state (old/new) and the number of children.
Put simply, the child supplement for the full widow’s pension is currently EUR 71 for the first child and EUR 35 for each subsequent child, whilst for the reduced widow’s pension it is EUR 32 for the first child and EUR 16 for each subsequent child.
Taking one’s own income into account
The pension scheme takes the income of the surviving spouse into account when calculating the widow’s or widower’s pension. This is done, taking into account any allowances, as follows (outlined here only in broad terms for the sake of clarity):
- First, the Net income calculated. In addition to the state pension and earned income, capital income, private pensions, occupational pensions and parental allowance are also taken into account. In some cases, flat-rate methods are applied. For example, a flat-rate deduction of 40% is made from gross earned income; if the surviving spouse receives their own pension, the flat-rate deduction is 14%.
- From the net income calculated in this way, the Tax-free allowance is deducted. This currently stands at around EUR 950 (old federal states) and EUR 937 (new federal states). If there are children who are entitled to an orphan’s pension, the allowance increases by around EUR 201 (old federal states) or EUR 198 (new federal states).
- If the income calculated after deduction of the allowance exceeds that allowance, 40% of the remaining amount is credited against the widow’s pension, i.e. deducted from the widow’s pension. This may result in the widow’s pension entitlement being reduced to zero.
However, should the surviving spouse’s income decrease (e.g. due to a switch to part-time work or retirement), the pension entitlement – which may have been reduced or even withdrawn altogether – is reinstated.
Remarriage
If the surviving spouse remarries, the widow’s pension ceases. However, it is possible to apply for a lump-sum payment equivalent to two years’ worth of the full widow’s pension, which is calculated on the basis of the previous year’s earnings, Section 107 of Book VI of the Social Code (SGB VI).
Widow’s pension is not inheritable
As the widow’s pension is not inheritable, it is payable only to the surviving spouse or civil partner, and not to children or other heirs. Upon the death of the surviving spouse, the pension insurance scheme ceases to pay the widow’s pension (Section 102(5) of Book VI of the Social Code).
We would be happy to advise you on any questions or issues relating to inheritance law. Please make an appointment. You can contact us by email at willkommen@gwgl-hamburg.de or by telephone on 040/300 39 86-0 there for you.