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Up to 419 euros surcharge thanks to the basic pension: what pensioners need to know now

2023-01-24T18:08:57.890Z

The basic pension serves as a financial subsidy for pensioners who have earned less in their professional lives. Who is entitled to the money and what do you have to do for it?



The basic pension serves as a financial subsidy for pensioners who have earned less in their professional life.

Who is entitled to the money and what do you have to do for it?

Update from January 24, 2023:

Can the statutory pension be attached?

Allowance protects debtors.

First report from January 8, 2023:

Berlin – Many consumers in Germany make ends meet with their statutory pension.

The government wants to help with the so-called basic pension, especially for citizens who worked a lot during their time, raised children, but earned below average.

This supplement is paid in addition to the existing pension and can amount to up to 419 euros per month.

24hamburg.de explains who is entitled to the money and how the surcharge is made up.

Pensioner:

A person who is no longer or mostly no longer employed and earns his living from a pension

Pension:

Statutory or private insurance benefit

Demarcation of private individuals:

Living off their savings

Delimitation pensioner:

Receive a pension instead of a pension, i.e. a mostly state pension benefit that is not based on previously paid contributions, but on service-related pension entitlements

Basic pension as a supplement for pensioners: who is entitled to the money?

In the summer of 2020, the German Bundestag agreed on additional support for the basic pension, and the law finally came into force on January 1, 2021.

Since then, certain pensioners have been entitled to the supplement, which is paid together with the state pension.

The amount of the basic pension is determined individually and the beneficiaries are informed in the pension notice.

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Some pensioners are entitled to the so-called basic pension surcharge – recipients can get up to 419 euros.

© Frank Hoermann/SVEN SIMON/Imago

But what do you have to do in order to receive the basic pension supplement?

Retirees who have at least 33 to at best 35 years of so-called basic pension periods are entitled to the money.

According to the German pension insurance, this includes:

  • Times with compulsory contributions from employment or self-employment

  • Compulsory contribution times for child rearing and care

  • Consideration times due to child rearing and care

  • Times when you received sickness or rehabilitation benefits

  • Substitute times (e.g. times of political imprisonment in the GDR)

  • Tip:

    Times acquired abroad can also count if the times under European law or a social security agreement are to be taken into account for the pension.

But beware: Mini-jobs without own contribution payments are not taken into account - just like times for which voluntary contributions were paid as well as periods of unemployment and the supplementary period.

Supplement for pensioners: when are you entitled to the basic pension?

However, not every pensioner who can show 35 years of basic pension assessment times is automatically entitled to the basic pension.

The second important aspect that plays into receiving the supplement is the average income during working life.

This must have been at least 30 percent and less than 80 percent of average earnings in Germany.

Average earnings change every year and, according to

Finanztip News

, will be around 42,000 euros a year in 2023.

If the monthly income is less than 30 percent of this in certain periods (i.e. around 1050 euros gross), these phases are not included.

The same applies if the person concerned has earned more than 80 percent of the average income during their working life.

In 2023, that is around 2800 euros gross per month.

Transition area for the basic pension

According to the German pension insurance, the basic pension surcharge starts in a so-called transitional area at 33 years of basic pension periods.

Pensioners who have at least 33 years but less than 35 years with basic pension periods receive the basic pension supplement at a scale.

So there is a smaller top-up that increases each month until the full basic pension is reached at age 35.

Maximum amount of 419 euros per month for pensioners: how much is the basic pension?

But how exactly can the amount of the basic pension be calculated if you are entitled to it as a pensioner?

First, the average value from the periods relevant to the calculation of the surcharge is doubled.

However, this amount is then reduced by 12.5 percent and calculated for a maximum of 35 years.

According to estimates by the Deutsche Rentenversicherung, the average basic pension is around 75 euros a month – but pensioners can also skim off up to 419 euros a month under optimal circumstances.

How high can my pension be in order to receive the full basic pension?

What should be taken into account when calculating the basic pension, however, is the income test.

Because income is counted towards the surcharge, only pensioners who have a monthly income of up to 1,250 euros as a single person or up to 1,950 euros as a married couple will receive the full amount.

If the income is higher, 60 percent of the basic pension surcharge is counted according to the German pension insurance.

With a monthly income of 1,600 euros and up - 2,300 euros for married couples - it is even counted at 100 percent.

Your own pension and other taxable income count as income.

The decisive factor here is the income of the previous calendar year, i.e. 2021 in 2023. As a pensioner, you can also deduct certain expenses from your taxes.

It is not necessary to calculate the basic pension yourself – pensioners are paid out automatically

In addition to all the complicated factors that have to be factored into the basic pension, the surcharge also has its good side: The financial injection does not have to be applied for separately, since the pension insurance automatically determines the basic pension periods and also checks the other requirements of all pensioners themselves.

Pension recipients abroad are also automatically contacted by Deutsche Rentenversicherung as soon as a basic pension supplement is an option for them.

Payment is also automatic.

The Federal Ministry of Labor and Social Affairs assumes that around 1.3 million pensioners in Germany will benefit from the basic pension.

But it doesn't stop with the surcharge: there are actually eight government grants that pensioners should know about.

List of rubrics: © Frank Hoermann/SVEN SIMON/Imago

Source: merkur

All life articles on 2023-01-24

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