For many people, the pension is often so low that it does not allow them to finance their retirement. One in two pensioners received less than 1,250 euros in pension in 2022 and is therefore considered at risk of poverty, and more than nine million pensioners are at risk of a pension of less than 1,500 euros. Pensioners will not get very far with this. However, there are various subsidies that can be applied for in 2024. You can find out what these are in the article.
Pension subsidy 2024: You can apply for these benefits
health insurance
According to the German Pension Insurance, pensioners who have private or voluntary health insurance can receive a contribution subsidy from the statutory pension insurance. However, this must be applied for. Pensioners can do this, for example, when they apply for a pension.
The amount of the subsidy for voluntarily insured people depends on the respective pension level, the general contribution rate of the statutory health insurance and the additional contribution of the own health insurance company. The general contribution rate is currently 14.6 percent. To calculate the subsidy, this is increased by the contribution points of the additional contribution of the own health insurance company. This result is then halved and this is the basis for calculating the subsidy.
For pensioners who are privately insured, the same calculation applies in principle. The average additional contribution for statutory health insurance is used as the additional contribution, according to the German pension insurance. The amount of the subsidy is a maximum of half the insurance premium.
Anyone interested in a subsidy for health insurance should contact the German Pension Insurance.
Housing benefit plus
If pensioners do not have enough money to pay for adequate housing in old age, they can apply for housing benefit plus. This was introduced in January 2023 and has increased significantly compared to the housing benefit that existed until 2022. According to the consumer advice center, since 2023 there will no longer be around 177 euros per month, but an average of 370 euros.
The amount of the subsidy depends on the housing costs in comparison to income and in comparison to the housing costs of the municipality. Pensioners who spend around 40 percent of their pension on rent should apply for housing benefit plus, advises the consumer advice center. A heating cost subsidy is also possible within this framework.
Burden subsidy
The burden subsidy represents a further financial relief. Pensioners who do not live in rented accommodation but own their own house but have only a small pension can apply for the burden subsidy, as the Home Ownership Association explains.
This is not paid out as a lump sum, but depends on the following factors:
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Number of people living in the same household
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Amount of income of the entire household
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Amount of eligible burdens for residential property that is used by the owner.
Those affected who still have to pay off a loan for a property have the option of declaring the repayment as housing costs.
Nursing home contribution
There is also financial support for pensioners living in nursing homes. The prerequisite is that they do not have enough pension to cover the Own contribution for the nursing home to pay. In this case, the social welfare office will cover the costs. However, according to the consumer advice center, it must be noted that the entire income and other assets must have been spent in advance on the personal contribution. Pensioners are only allowed to keep protected assets.
By the way: The care allowance does not count as income for the pension.
Basic pension
Another option for more money is the basic pension or the basic pension supplement, as it is officially called. This is not a separate pension, but a component of the pension, as the German pension insurance company reports. This is paid out as a supplement to the statutory pension if the latter is very low.
The basic pension is calculated individually and is paid out in addition to the old-age pension, disability pension, survivors’ pension and childcare pension. Insured persons who have accumulated at least 33 years of basic pension time are entitled to it.
Important to know: The supplement does not have to be applied for, because the German pension insurance company checks on all pensioners whether the necessary requirements are met. If this is the case, the basic pension is automatically paid to those affected. Insured persons can find out how high it is from their pension notice.
Basic security in old age
Anyone who receives only a small pension can also apply for basic security in old age. According to the German pension insurance, this is available to people in need who have either reached the standard retirement age or are permanently disabled. It is also required that the person in need is at least 18 years old and lives in Germany.
The German pension insurance company advises insured persons whose monthly income is less than 924 euros to check whether they are entitled to basic security. This can include people who have never worked. This can apply to housewives, for example. However, they are also supported with the mother’s pension, as the time spent raising children can be credited towards the pension. More and more pensioners are receiving basic security in old age, as current figures show.
Basic old-age security is not paid out as a lump sum, but individually and depends on the assets and income of the person concerned. The partner’s income is also taken into account.
The standard rate will rise from 502 euros for single people to 563 euros from January 1, 2024, according to the federal government. Couples will no longer receive 451 euros per partner, but 506 euros. In the first year, the protected assets are 40,000 euros for the applying member of a community of need. This is not counted towards basic security. Each additional person has protected assets of 15,000 euros. From the second year, each beneficiary may still have 10,000 euros in assets.
With basic old-age security, the cost of housing is also covered in the first year. The Federal Employment Agency must consider the housing to be appropriate in subsequent years.
Pension certificate
Last but not least, there is the pension card, which can ease the burden on retirees’ wallets. Although this is not a direct financial injection, it can help retirees save a lot of money, as it offers reduced prices in many areas of daily life.
These include, for example, admission to various cultural and sporting events, libraries, adult education centers, leisure and wellness offers. There are also discounts on public transport, the broadcasting fee and current accounts.
By the way: There is still a subsidy of up to 5,000 euros for pensioners that they can apply for. In addition, around three million pensioners will receive more money in 2024. Since pensions will increase again in 2024, insured persons can see what this means for them financially from the pension table.
