More and more pensioners are also dependent on basic security. Number rose from around 414,000 at the end of 2020 to 469,000 in September last year.
This increase is due to the effects of the tax-free allowance regulation. Long-term unemployed people, those unable to work and those who have never worked have not, as a rule, accumulated 45 years of contributions for their pension like other pensioners. They are exempt from paying into the pension fund. However, they are not entitled to a pension. This is only available to people who have waited at least five years. If the pension is not enough to live on, the welfare state will help them with basic security in old age. According to the German Pension Insurance, these can be used by those who do not receive a retirement pension and cannot cover their living expenses with their income. The basic security is also intended to cover the costs incurred for accommodation and heating, health and nursing care insurance and pension contributions. The standard rate in 2024 is 563 euros for adults who live alone or in a shared apartment.