Basic income support in old age and in the event of reduced capacity - what is it?
For many people, the statutory pension is not enough to cover their living expenses in old age. Especially those who have earned little for a long time, raised children or cared for relatives often face financial difficulties in retirement. In such cases, the welfare state steps in: with the basic income support in old age and in the event of reduced earning capacity. This benefit secures the minimum subsistence level - regardless of previous employment history. It takes precedence over subsistence assistance. But how exactly does it differ from subsistence assistance? Who is entitled to it, how much is the benefit and what is taken into account? In this article you will find all the important information explained clearly.
Basic income support in old age is a social benefit for people of retirement age with low income and assets.
You must have reached the standard retirement age and be in financial need.
You can also receive the benefit despite a pension or salary. The income is offset against the benefit in each case.
There are allowances for assets and protected pension provision.
The benefit includes the standard requirement, costs for accommodation and heating as well as additional requirements.
The social welfare office at the place of residence is responsible - this is where the application is made.
Children are not included if their annual income is less than 100,000 euros.
With our basic income support calculator from LeistungsLotse, you can quickly and easily calculate how much basic income support you are entitled to in old age. Check now!
Check nowFor many people, the statutory pension is not enough to cover their living expenses in old age. Especially those who have earned little for a long time, raised children or cared for relatives often face financial difficulties in retirement. In such cases, the welfare state steps in: with the basic income support in old age and in the event of reduced earning capacity. This benefit secures the minimum subsistence level - regardless of previous employment history. The entitlement to this social welfare benefit is based on the twelfth German Social Security Code - in particular § 41 and § 5 SGB XII. But how exactly does it differ from subsistence assistance? Who is entitled to it, how much is the benefit and what is taken into account? In this article you will find all the important information explained clearly.
Basic income support in old age and in the event of reduced earning capacity is aimed at people who are permanently unable to support themselves - either because of their age or because of a health-related reduction in earning capacity. The prerequisite is that the standard retirement age has been reached (currently you must be 66 years old) or that you are permanently fully incapacitated for work. The benefit regularly begins when the age limit is reached at the age of 65 or currently 66. An entitlement only exists in the case of a medically recognised permanent reduction in earning capacity that precludes participation in general working life.
The benefit is often granted in addition to the respective pension if the pension is not sufficient:
Reduced earning capacity pension -> Basic income support for reduced earning capacity
Regular old-age pension -> Basic income support in old age
But even if you do not receive a pension but have exceeded the age limit or are permanently disabled, you can receive basic income support. Citizens allowance is no longer paid if you exceed the age limit or are unable to work. This distinguishes the basic income support from the regular citizens allowance.
Basic subsistence assistance, on the other hand, is aimed at people who are not yet of retirement age, but who are temporarily or permanently in need of assistance and unable to work. The entitlement to assistance with living expenses and basic income support arises from the general entitlement to benefits in accordance with Section 1 SGB XII.
Although both benefits pursue the same goal - namely to secure the minimum subsistence level - there are legal and administrative differences. Basic income support is regulated in the fourth chapter of the twelfth German Social Code (§§ 41 SGB XII), while subsistence assistance is regulated in the third chapter. In contrast, subsistence assistance is anchored in the third chapter of SGB XII (§§ 27 ff. SGB XII). The basic security benefit is granted permanently as long as the requirements are met. Assistance with living expenses is usually granted for a limited period of time and only in the event of temporary need for assistance.
Assistance with living expenses usually comes into play if you are not entitled to basic income support. The most typical cases are as follows:
Temporary reduction in earning capacity: If, for example, there is a prospect of recovery from an illness through rehabilitation.
Under 15 living with a basic income support recipient: Children of basic income support recipients living in the same house are not taken into account when calculating their needs. From the age of 15, they can apply for citizens allowance themselves. Before that, however, they can receive assistance with living expenses.
The distinction is important for those affected because different legal consequences can arise depending on your situation - for example, when it comes to maintenance claims or the application process.
The purpose of basic income support is to provide people with low income and assets with financial support so that they can lead a decent life. It is available both to senior citizens who have reached the standard retirement age and to adults below this age who are permanently fully disabled.
The legal basis for basic income support is regulated in § 41 in conjunction with § 2 and § 5 SGB XII. This social welfare benefit is aimed at people in permanent need who are unable to support themselves from their own income or existing assets.
Need is assessed on the basis of individual financial circumstances. Both the applicant's income and assets are taken into account - as are the costs of accommodation, heating and any additional requirements.
Basic income support is a state social benefit that secures the legally guaranteed minimum subsistence level. It is intended to prevent people from falling into poverty in old age or in the event of a permanent reduction in earning capacity. The benefits include
the standard requirement for living costs,
the costs of accommodation and heating, where appropriate,
additional needs, for example in the event of illness, disability or single parenthood,
and in certain cases one-off benefits such as initial equipment or relocation costs.
Benefits for accommodation and heating are paid at an appropriate level. The actual expenses for accommodation may not exceed the local reference values.
Anyone completing a vocational training programme in a workshop for people with disabilities may also be entitled to benefits when they reach the age limit or in the event of a permanent reduction in earning capacity if they do not have sufficient cover via the pension. Persons with disabilities who have completed the entry procedure and the vocational training programme may also be entitled to benefits.
The application for basic benefits must be actively submitted - usually to the local social welfare office. The benefits are granted from the month in which the application is submitted, not retroactively.
When basic security benefits are granted, it is also checked whether the applicant may have priority claims under SGB II or another benefit. The amount of basic income support depends on individual needs. This is made up of the standard requirement, the cost of accommodation and any additional requirements. In 2025, the monthly standard requirement for single people will be around 563 euros. Single people are assigned to standard needs level 1, which has an impact on the amount of monthly benefits. Lower rates apply for partners in a joint household.
In addition, there are reasonable rent and heating costs. What is considered reasonable is based on regional guidelines. If you live in a flat that is too expensive, you may be asked to move - at least if there are no special reasons for the higher rent.
Expenses for accommodation and heating are paid in full if they are reasonable - otherwise the social welfare provider can demand a reduction in costs.
The benefit can be increased by an additional requirement - for example in the case of a costly diet. 100 euros per month is not deducted from certain incomes - for example voluntary work or care allowances.
Only people who are unable to support themselves from their own resources - neither from income nor from assets or family support - are eligible. The prerequisite for receiving basic income support is, on the one hand, reaching the age limit or having a permanent full reduction in earning capacity. Secondly, there must be financial need. This means that your own income and assets are not sufficient to cover your current living expenses.
An entitlement only exists if the available assets do not exceed the allowances according to § 90 SGB XII. Basic income support will only be granted if the application is complete and all necessary evidence has been submitted - including current pension statements from the statutory pension insurance scheme.
Further conditions are
habitual residence in Germany,
the submission of a formal application to the social welfare office,
and proof of all relevant income and assets.
Particularly important: Anyone applying for benefits must disclose all income - this includes pensions, maintenance payments, rental income, capital gains and other regular income.
The basic income support consists of several components:
Standard needs: This covers the costs of food, clothing, personal hygiene, household effects, electricity (excluding heating) and personal needs of daily life.
Costs of accommodation and heating: Assumption of the actual rent and heating costs, provided they are deemed reasonable.
Additional requirements: There are supplements for certain groups of people - for example in the case of disability, pregnancy, single parenthood or cost-intensive nutrition.
One-off benefits: In special cases, the social welfare office also covers one-off expenses, e.g. for initial furnishings or necessary purchases.
The benefits are authorised by the contact person at the responsible social welfare office and are based on the individual needs of the applicant.
Basic security benefits in old age therefore include all measures that are necessary to ensure the necessary means of subsistence - especially for people who have reached the age limit and are permanently in need. In addition to the standard requirement, basic security also includes the payment of health and long-term care insurance contributions if no other insurance cover exists.
The local social welfare agency, i.e. the organisation responsible for basic income support - usually the social welfare office at the place of residence - is responsible.
When calculating basic income support, it is checked whether income or assets are available that can be used to cover living expenses. Anyone wishing to claim basic income support must disclose and provide evidence of their entire income and existing assets. Income from secondary employment or pension benefits can also be offset against the basic income support. This includes
statutory pensions,
salaries and wages
Company and private pensions,
investment income (e.g. interest, dividends),
rental income or other income.
However, not everything is taken into account. There are allowances, for example for small pension schemes or for people with basic pension periods. A certain amount of protected assets is also not taken into account - currently this is 10,000 euros for single people and 20,000 euros for couples.
In addition, no maintenance is claimed from children if their annual income is less than 100,000 euros - an important difference to subsistence assistance. Owner-occupied residential property, reasonable household effects and a car are also excluded as long as they are reasonable.
In certain cases, there is no entitlement to basic income support in old age and in the event of reduced earning capacity, although there is a basic need. The German Social Code provides grounds for exclusion in order to avoid inappropriate utilisation or to take into account other overriding obligations.
An entitlement is excluded, for example, if
the applicant is not legally resident or is only temporarily resident in Germany (e.g. if they have been resident for less than three months or do not have a residence permit),
the need for assistance was caused intentionally or through gross negligence (e.g. by wasting assets or unjustified abandonment of reasonable gainful employment),
there is an entitlement to priority benefits such as citizens allowance or maintenance payments which have not been exhausted,
the person concerned is abroad without a justified reason.
In addition, benefits may be suspended or reduced if obligations to co-operate - for example when submitting documents or undergoing medical examinations - are breached.
People who live in an inpatient facility and are fully cared for there may also have no or only limited entitlement to basic income support. In these cases, special regulations apply to the granting of benefits by the social welfare organisation.
An entitlement may be cancelled if the need for assistance was caused intentionally or through gross negligence in the last ten years.
Not exclusively, but older people are affected by poverty in old age more often than average - especially if they have earned little for a long time, raised children or cared for relatives. They often have low pensions and cannot fully support themselves in old age.
With LeistungsLotse, you can quickly and easily calculate how much basic income support you are entitled to in old age and apply for it directly. Check now!
Check nowThe basic old-age pension is a central element of social security in Germany. It ensures that people can lead a dignified life in retirement - even if they only receive a small pension or none at all. Anyone who is permanently in need of assistance has a statutory right to support. It is important to honestly assess your own situation and apply in good time. After all, nobody has to live in poverty in old age - that's what basic income support is for.
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