If there is not enough money in old age - this is what you should know about the basic pension

The pension is very low for many people - even though they have worked for years.

To change that, the federal cabinet has decided to introduce a basic pension.

You have worked for a long time, and yet your

not enough for you: This is how many people in Germany feel.

Because the pension may be safe.

In many cases, however, it is narrow.

To change that, the federal cabinet has decided to introduce a basic pension.

With this

,

receive

a premium on their

onwards

.

This is how it should work in concrete terms: From 2021, those affected should

receive a supplement to the statutory pension

from the

, which is calculated individually.

Whether one the first time a

receive or already

is, it did not matter how the German Press Agency (dpa) reported.

From the current pensions, those biographies are filtered out that meet all the requirements, explains the Deutsche Rentenversicherung accordingly.

Dpa gives an overview of the

Read here:

Basic pension: how long do you have to have worked?

In order

to be able to receive

the

, there must be at least 35 years of "basic pension", dpa describes the background.

That means that you worked during this time and made mandatory contributions to the statutory pension insurance.

“But even those who have only worked and paid in for 33 years receive the basic pension -

but then in a reduced form,” says Daniel Konczwald, board member of the Federal Association of Pension Advisors, in the report.

Periods of

and

are also included in the basic pension - just like periods in which

benefits were received

during

or rehabilitation.

According to the report, however, the years in which voluntary contributions were paid, periods of unemployment and those in which one received a disability pension are not taken into account.

Read here:

Basic pension: What does “below average earnings” mean?

What other requirements are there?

The

must have been at least 30 percent and at most 80 percent of the average

over the entire working life, as the report goes on to say.

"For the year

that means, for example: at least 1,013 euros and a maximum of 2,703 euros gross per month," explains Konczwald according to dpa.

If the average income of the entire professional life is over 80 percent of earnings, which is determined as the national average for the respective professional years, the basic pension cannot be paid, reports dpa.

Periods with marginal employment are also not taken into account.

Read here

Basic pension: how high is the benefit?

According to the report, the

basis for

is the

that were earned as a result of the contributions during the entire insurance life.

The pension entitlement will be doubled for a maximum of 35 years, but limited to 80 percent of average earnings.

In the end, the surcharge calculated in this way will be reduced by a flat rate of 12.5 percent, according to the German pension insurance, according to dpa.

“The

” the expert estimates.

.

The report also says: If you earn income in addition to your pension, you have to accept

.

Read here

Basic pension: this is how it affects social benefits

Those who

meet

the requirements for the

also enjoy

, the report said.

These should therefore be at least 100 and a maximum of 216 euros.

"In this way we ensure in all cases that the long-term insured has more monthly available than the current basic security requirement," says a spokesman for the Federal Ministry of Labor and Social Affairs.

According to the dpa, the expert Daniel Konczwald also states: "Basically, the income level with a basic pension is around ten percent above that of the basic security."

Basic pension: when does the new regulation come into force?

The

occurs according to dpa

into force.

The

can therefore

out in

.

Amounts to which there is a claim from January 2021 would then be paid in arrears.

An application for a basic pension does not have to be submitted.

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