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The amount of the widow’s pension is determined by the following questions: Does old or new law apply, does the large or small widow’s pension apply?
If the spouse died before 01 February 2002, the old law still applies. If he or she died after 31 December 2001, old law only applies if the marriage took place before 1 January 2002 and one of the partners was born before 2 January 1962.
New law applies if the marriage took place after 31 December 2001. It also applies if the marriage took place earlier but both partners were born after 1 January 1962.
For three months after death, the survivor receives the full monthly old-age pension of the deceased partner as a widow’s pension. After this “death quarter”, further net income, such as a retirement pension, is offset against the survivor’s pension. There are two options for the period thereafter:
1. large widow’s/widower’s pension.
The calculation is complicated because several factors play a role. One prerequisite, for example, is that the survivor must be a certain age in order to receive the large widow’s pension (2020: 45 years and nine months). Entitlement also exists if the survivor has to care for a minor or disabled child.
2. small widow’s or widower’s pension
If you do not meet the requirements for 1. above, you still have the option of receiving a small widow’s or widower’s pension. This amounts to 25% of the pension to which your partner would have been entitled at the time of death.
At Horizon65 we can help you to determine if company pensions are worth it for you by using our mobile app to simulate its effect on your future taking into your existing investments and potential impact of inflation and taxation.
We regularly help our clients by comparing all the available company pension products on the market using our comparison portal or you can also directly get in touch with our experts to understand if it can be a good option for you.