The basic state pension serves as a subsidy for pensioners who have earned less in their working lives. Who is entitled to the money and what needs to be done for it.
Update from February 8, 2023: Where to get a free living will: If you can no longer decide on medical measures yourself in the event of illness, you should have a living will. You don't necessarily have to pay money.
Up to 419 euros surcharge: This is what pensioners should know about the basic pension
Initial report: Berlin – Many consumers in Germany are struggling to make ends meet with their statutory pension. Especially in the case of citizens who have worked a lot in their time, raised children, but earned below average, the government wants to help with the so-called basic pension. This supplement is paid in addition to the existing pension and can amount to up to 419 euros per month. Who is entitled to the money and how the surcharge is made up, explains 24hamburg.de.
| Pensioner: | A person who is no longer or most of the person who is no longer employed and who earns his or her living from a pension |
| Pension: | Statutory or private insurance benefit |
| Differentiation between private individuals: | Living off your saved assets |
| Distinction pensioner: | Instead of a pension, they receive a pension, i.e. a usually state pension benefit that is not based on contributions paid in advance, but on pension entitlements related to length of service |
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 1 January 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 communicated to the beneficiaries in the pension notice.
Up to 419 euros: What pensioners now need to know about the basic pension. © Michael Weber/Imago
But what do you have to do in order to receive the basic pension supplement? Pensioners 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:
- Periods of compulsory contributions from employment or self-employment
- Compulsory contribution periods for child-rearing and care
- Periods of consideration due to child-rearing and care
- Periods in which you received benefits in the event of illness or rehabilitation
- Substitute periods (e.g. periods of political imprisonment in the GDR)
- Tip: Periods acquired abroad may also be included if the periods are to be taken into account for the pension under European law or a social security agreement.
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But beware: mini-jobs without their own contributions are not taken into account – as are periods for which voluntary contributions were paid, as well as periods of unemployment and the additional period.
Supplement for pensioners: when are you entitled to the basic pension?
However, not every pensioner who has 35 years of basic pension assessment periods is automatically entitled to the basic pension. The second important aspect that plays into the receipt of the supplement is the average income during working life. This must have amounted to at least 30 percent and less than 80 percent of the average earnings in Germany.
Average earnings change every year and, according to Finanztip News, will be around 2023,42 euros a year in 000. If the income in certain periods is less than 30 percent of it per month (i.e. around 1050 euros gross), these phases are not included. The same applies if the person concerned has earned an average of more than 80 percent of the average income during his or her working life. That is about 2023 euros gross per month in 2800.
Transitional area for the basic pension
According to the German Pension Insurance, the basic pension supplement 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 of basic pension periods receive the basic pension supplement in a staggered manner. So there is a smaller top-up, which increases with each month – until the full basic pension is reached at the age of 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 of all, the average value from the periods relevant for the calculation of the surcharge is doubled. However, this amount is subsequently reduced by 12.5 percent and calculated for a maximum of 35 years.
According to estimates by the German Pension Insurance, the basic pension amounts to an average of around 75 euros per month – but pensioners can also earn up to 419 euros per month under optimal circumstances.
How much can my pension be in order to receive the full basic pension?
What should be included in the calculation of the basic pension, however, is the income test. Because income is credited to the supplement, only pensioners who have a monthly income of up to 1250 euros as a single person or up to 1950 euros as a married couple receive the full amount. If the income is higher, it is credited to 60 percent of the basic pension supplement, according to the German Pension Insurance. With a monthly income of 1600 euros upwards – 2,300 euros for married couples – it is even credited at 100 percent.
Income is considered to be one's own pension and other taxable income. The income of the calendar year before last, i.e. in 2023, i.e. 2021, is decisive. By the way, as a pensioner, you can also deduct certain expenses from your taxes.
It is not necessary to calculate the basic pension yourself – payment for pensioners is automatic
In addition to all the complicated factors that have to be included in the basic pension, the supplement also has its good side: The financial injection does not have to be applied for separately, as 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 the German Pension Insurance as soon as they are eligible for a basic pension supplement. The payout is also automatic.
The Federal Ministry of Labour and Social Affairs assumes that about 1.3 million pensioners in Germany will benefit from the basic pension. But it doesn't stop at the supplement: In fact, there are eight subsidies from the state that you should know as a pensioner.
