Basic Income Support in Old Age
Grundsicherung im Alter
Coverage
- Persons residing in Germany who have reached the standard statutory retirement age and cannot sufficiently cover their necessary subsistence from income/assets.
Financing
- The scheme is entirely tax-financed out of the general federal budget.
Administration
- The administration and organisation of the scheme falls under the jurisdiction of the Länder.
- Local welfare authorities manage the scheme (i.e. review applications, decide on eligibility, and pay out benefits).
Qualifying Conditions
- Persons who have reached the standard retirement age of the statutory old age pension scheme (age 67 for persons born after 1963).
- Persons residing in Germany.
- Persons with income/assets below subsistence level as defined by law.
- Benefits are means-tested based on monthly net incomes and assets of the elderly person and his/her spouse/cohabiting partner; excluded from means-testing are e.g. assets of EUR 5,000 per person, pension benefits from voluntary occupational/private schemes (EUR 100, 30% of pension thereafter, max. 50% of benefit rate for basic needs) and self-used property/housing; income of children or parents is only considered if the yearly gross income (per person) exceeds EUR 100,000.
Benefits
- The amount of benefits is based on the sum of (mostly flat-rate) benefits for the overall needs of the elderly person minus income and assets.
- Benefits are granted for basic needs, reasonable costs for housing and heating, contributions to healthcare and long-term care, special needs (e.g. due to disabilities) and one-time needs (e.g. basic equipment, furnishing).
- The flat-rate benefits for basic needs are regularly determined based on the actual consumption expenditure of low-income households; benefit rates are adjusted yearly based on changes in prices/incomes; benefit rates can vary slightly between the Länder/municipalities.
- Benefits are typically granted for 12 calendar months; renewable as long as qualifying conditions persist; benefit payments are suspended if the beneficiary leaves Germany for a period exceeding 4 weeks.
- Benefits are not subject to income tax.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
- Persons residing in Germany who have reached the standard statutory retirement age and cannot sufficiently cover their necessary subsistence from income/assets.
- The scheme is entirely tax-financed out of the general federal budget.
- The administration and organisation of the scheme falls under the jurisdiction of the Länder.
- Local welfare authorities manage the scheme (i.e. review applications, decide on eligibility, and pay out benefits).
- Persons who have reached the standard retirement age of the statutory old age pension scheme (age 67 for persons born after 1963).
- Persons residing in Germany.
- Persons with income/assets below subsistence level as defined by law.
- Benefits are means-tested based on monthly net incomes and assets of the elderly person and his/her spouse/cohabiting partner; excluded from means-testing are e.g. assets of EUR 5,000 per person, pension benefits from voluntary occupational/private schemes (EUR 100, 30% of pension thereafter, max. 50% of benefit rate for basic needs) and self-used property/housing; income of children or parents is only considered if the yearly gross income (per person) exceeds EUR 100,000.
- The amount of benefits is based on the sum of (mostly flat-rate) benefits for the overall needs of the elderly person minus income and assets.
- Benefits are granted for basic needs, reasonable costs for housing and heating, contributions to healthcare and long-term care, special needs (e.g. due to disabilities) and one-time needs (e.g. basic equipment, furnishing).
- The flat-rate benefits for basic needs are regularly determined based on the actual consumption expenditure of low-income households; benefit rates are adjusted yearly based on changes in prices/incomes; benefit rates can vary slightly between the Länder/municipalities.
- Benefits are typically granted for 12 calendar months; renewable as long as qualifying conditions persist; benefit payments are suspended if the beneficiary leaves Germany for a period exceeding 4 weeks.
- Benefits are not subject to income tax.
Legal Basis: Social Security Code – Book XII, Chapter 4 (Sozialgesetzbuch XII, Viertes Kapitel).