People who have never worked do not receive a pension. But how high is the amount for pensioners who claim basic security?
Berlin – The new pension package from the traffic light coalition, as well as the pension increase in summer 2024, is on everyone’s lips. But while there are still many unanswered questions about pensions in the future and there is even more criticism of Pension Concept II, many pensioners are at least entitled to more pension points. But how much pension do you actually get if you have never worked?
Basic security for pensioners: Responsible for the effects of the tax-free allowance regulation
In fact, it is the case that more and more pensioners are also dependent on basic security. The number rose from around 414,000 at the end of 2020 to 469,000 in September last year. This is reported by
tagesschau.de
, based on data from the Federal Statistical Office.
According to the German Pension Insurance (DRV), this increase is due to the effects of the tax-free allowance regulation, a DRV spokeswoman explained to the
German Press Agency (dpa)
. These allowance regulations were introduced with the basic pension that started at the beginning of 2021. This resulted in the goal that people with particularly low wages receive retirement benefits above the basic security.
More and more pensioners are taking advantage of basic security
According to statisticians, in 2010, 283,000 pensioners received basic security in old age. Five years later there were already over 414,000 and at the end of 2022 around 454,000. Of these, 249,000 were women and 205,000 men. The DRV spokeswoman said: “With a total of around 16.3 million recipients of an old-age pension (around 16.2 million at the end of 2020/2021), this corresponds to a basic security rate of around 2.8 percent (at the end of 2020/2021 around 2.6 /2.7 percent).”
Now it is not only pensioners who receive basic security in Germany, but also the overall number of seniors with basic security has increased in old age in recent years. At the end of 2020, more than 564,000 people in Germany were dependent on basic state security. At this point, that was the highest value at the end of the year since the service was introduced in 2003, and at the end of 2022 it was even 659,000. By September 2023, the number had climbed to almost 689,000, of which around 297,000 were men and 392,000 women.
No pension if you have never worked: Who is entitled to basic security for pensioners?
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, which is why they are exempt from paying into the pension fund. However, they are not entitled to a pension. This is only available to those who have waited at least five years.
However, if the pension is not enough to live on, the welfare state will help them with basic security. According to the German Pension Insurance, these can be used by those who have reached the standard retirement age but 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 German Pension Insurance therefore recommends that everyone who lives in Germany and whose income or pension is less than 924 euros per month at least have an application for basic security checked.
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How much pension there is if you have never worked: How high is the basic security?
However, the amount of basic security depends – just like the pension – on several factors. It cannot be determined across the board, but varies from individual case to individual case. Wealth and income play a role, as does your partner's wealth. Normally, however, the standard rate in 2024 is 563 euros for adults who live alone or in a shared apartment. This rule also applies to adults with disabilities who live in an apartment with their parents.
For spouses and life partners who live together in an apartment, the standard rate is 506 euros. People with disabilities who live in special living arrangements also receive this standard rate.
Pension without work: What counts as income for basic security
Parental allowance over 300 euros
Earned income
rental income
Child benefit
Sick pay
Rental income
Pensions
pensions
Parental maintenance payments
Interest charges
Basic security instead of a pension if you have never worked: What does not count as income
Parental allowance up to 300 euros
Benefits of an additional, voluntary retirement provision
Basic pension
Maximum gross pension of 224.50 euros (33 years of basic pension periods are a prerequisite)
30 percent of income from self-employed or non-self-employed work (maximum 50 percent of standard requirement level 1)
Care allowance
Tax-free activities up to 250 euros (for example volunteer work)
Maintenance claims against children or parents
No pension, but entitlement to basic security: what counts as assets
Cash
House and property assets
car
Savings balance
Securities
Before a claim to basic security can be asserted, one's own assets must first be used up.
Entitlement to basic security: What does not count as assets
Adequate land or apartment. The prerequisite is that the property is lived in yourself
Family and heirlooms (as long as the ideal value far exceeds the actual value)
Ordinary household items
Smaller cash amounts (single person: 10,000 euros, partner: 10,000 euros)
Riester pension as private retirement provision
Apply for basic security: payment only for twelve months - the application is re-examined every year
However, the mega pension increase in July and other subsidies for pensioners do not benefit those who have never worked. All you have left is basic security.
It is therefore particularly important for them that once their application for basic security has been approved, it is paid out for twelve months before social assistance has to be applied for again in order to enable future payment.