As of: March 6, 2024, 6:27 a.m
By: Andreas Höß
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Because the pension is not enough, more and more people are receiving basic security in old age.
Recently, the allowances for this were also increased.
What income you are allowed to have and what is taken into account.
Munich - The number of pensioners who receive basic security is increasing: while there were around 414,000 at the end of 2020, today there are already 469,000, the Federal Statistical Office just announced - an increase of more than 13 percent.
But why is the number of pensioners receiving basic security increasing so much?
Who can actually apply for basic security?
And what does this cover?
Here are the most important questions and answers.
Why are there more pensioners in basic security?
According to the German Pension Insurance, this has primarily to do with a political decision: people who have made contributions to employment, education or care for at least 33 years but have earned little, have been able to claim higher allowances for basic security since 2021.
And these allowances increase every year.
In 2021, up to 223 euros of the pension remained exempt, and in 2023 it was even up to 253 euros.
Anyone who previously had just a little too much income for basic security in old age could now receive it, says a spokeswoman for the pension insurance company.
“This explains the increase in numbers,” she confirms.
Are there any other reasons?
Although the increase over the past two years can largely be attributed to higher allowances, there are of course other reasons.
For example, rents have risen extremely in recent years: in Munich for new buildings, for example, according to the Real Estate Association of Germany South, from 13.20 euros per square meter in 2010 to 21.30 euros in 2023.
Heating has also become more expensive.
Of course, these price increases and general inflation also put a strain on senior citizens and especially those in need, as studies repeatedly show.
This is also why pensions are often no longer enough to live on.
The result: Since 2010, the number of pensioners receiving basic security has increased from 283,000 to 469,000.
Compared to the total number of pensioners, currently 16.3 million, that is only 2.8 percent, according to the pension insurance company.
What is basic security and who gets it?
If the pension is not enough to live on, the basic security comes in.
It covers living expenses and, if necessary, also housing and heating costs.
And: You can even pay for parts of the retirement or nursing home; there is at least a subsidy equal to the local rent.
However, anyone who wants to apply for basic security in old age must have reached the age limit for the regular pension.
This is currently being gradually increased from the 65th to the 67th birthday.
The standard rate for basic security is 563 euros for single people, 506 euros for married couples or civil partnerships and 451 euros for people in inpatient facilities such as retirement or nursing homes.
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Who doesn't get basic security?
Early retirees are not entitled to basic security.
This also applies to people who live abroad and those who have “grossly negligently” caused their need, according to the pension insurance.
Pensioners whose relatives earn more than 100,000 euros and are dependent on them also do not receive basic security.
Incidentally, the basic security is not paid out by the pension insurance, but by the social welfare office.
It also checks the income of the applicants and decides in borderline cases whether they are in need or not.
When every euro counts: More and more often the pension is not enough to live on.
One way to cover living expenses, rent, housing and heating costs is to apply for basic security in old age.
© Stephanie Pilick/dpa
How much income can you have?
This depends on a variety of factors, but there is a rule of thumb: from 1,016 euros, pensioners should check whether they receive a basic pension.
At this level, the pension insurance always includes an application for basic security with the pension notice.
However, the pensioner does not have to be automatically entitled to the help.
If he has a lot of assets or a lot of additional income from rents, company pensions, Riester pensions or other sources, his income may be too high.
The partner’s income and assets are also included.
What income and capital are taken into account?
For example, stocks, real estate, cash, savings or land are considered assets.
If you want basic security, you basically have to use up this capital first.
However, there are protective assets that do not need to be touched.
This includes your own house or apartment, provided they are appropriate.
The social welfare office decides what this means in each individual case.
Household effects, small amounts of cash (10,000 euros for single people, 20,000 for couples) or heirlooms are also excluded.
There are also credit limits for income.
Rents of up to 3,000 euros per year do not count as income, and the limits for income from volunteer work are just as high.
For earned income from continued work or a mini-job, a maximum of 70 percent is taken into account.
And for pensions or Riester pensions there is an allowance of 100 euros each, above which a maximum of 70 percent of the income is taken into account.
How is a specific payment calculated from this?
The office always calculates whether a pensioner's income or assets are less than their standard requirements - and then compensates for the shortfall through basic security.
This results in complex calculations.
According to a sample calculation from the pension insurance, a married couple with a total pension of 1,145 euros, 300 euros in monthly rent, 66 euros in heating costs receives exactly 233 euros in basic security.
For a single person with higher allowances due to 33 years of crediting time for the basic pension, 350 euros in rent, 95 euros in heating and additional costs and a pension of 850 euros, the basic security is 533.50 euros.
Where and how do you apply for basic security?
You either have to submit the application for basic security directly to the social welfare office or you can hand it in to the pension insurance company, which will then send it to the social welfare office.
Information is available on the pension insurance website and by telephone at
0800/1000-4800.
What criticism is there of basic security?
Welfare associations and economists complain, among other things, that social welfare offices assess assets, rent levels and income differently and sometimes contradictorily and that the application process is very complicated.
This means that many potential beneficiaries would not apply for basic security at all, criticized economic researcher Andreas Peichel from the Munich Ifo Institute in 2021.