Too little pension? You receive these subsidies from the state

“Older people predominantly live in secure financial circumstances,” says the federal government’s latest pension report. The monthly household income of pensioner couples is now just under 3,800 euros net. For single male seniors it is around 2,200 euros, while female pensioners get just under 1,900 euros. These are average values, statistics. And they not only cover statutory pension payments, but also company pensions and income from private pension plans. This includes life and pension insurance, Riester pensions, interest and dividends as well as rental income. So much for the average across all.

A deeper look at the statistics reveals: More than 3.5 million pensioners are at risk of poverty today. If you live alone, you have to get by on less than 1,380 euros net per month. This is shown by the latest surveys from the Federal Statistical Office. These people, more than 15 percent of today’s pension recipients, can be helped by a whole range of government subsidies and discounts.

Anyone who has retirement income of less than 924 euros per month can have their entitlement to the so-called basic security in old age checked. The German pension insurance advises this. The standard rate granted is 563 euros for single people and 1012 euros for couple households. In addition, housing costs will be covered in the first year. From the second year onwards, the employment office will check the suitability of the apartment.

The basic security is not paid out as a flat rate, but after an individual needs assessment – comparable to the citizen’s benefit procedure. In addition to the income of a pensioner household, any savings are also taken into account. In the first year, 40,000 euros are spared from being charged, and from the second year onwards, 10,000 euros. Other members of the household may have protective assets of 15,000 euros.

The number of people receiving basic security in old age has risen continuously in recent years, most recently to more than 650,000 pensioners.

Anyone who has accumulated at least 33 years of basic pension but only has a very low claim to payment receives the so-called basic pension supplement. And this happens automatically, without a separate application. The German pension insurance checks whether the necessary requirements are met. If this is the case, the pension supplement will be paid to those affected. The amount is individual and is noted in the pension notice. The exact calculation is quite complicated. For orientation: For a pensioner with a retirement pension of 985 euros after 40 years of insurance, the surcharge would be around 100 euros per month.

Important: The 33 minimum years do not include periods of receipt of unemployment benefit and assistance (today citizens’ benefit). Periods of voluntary contribution payment and so-called attribution periods (pensions due to reduced earning capacity and survivors’ pensions) are also not taken into account.

This shrink-wrapped paper in credit card format doesn’t bring any money into the tight pensioner’s budget, but it saves noticeably. The pension certificate is issued by the German pension insurance. And to every new pensioner.

ID card holders receive discounts, for example on admission to museums, zoos and amusement parks, as well as cultural and sporting events. Pharmacies, fitness studios, libraries, adult education centers, sometimes retailers and restaurants, as well as Deutsche Bahn with the “Seniors’ Savings Price” also offer discounts. Local transport associations also offer cheap senior tickets, and some federal states also offer a discounted Germany ticket. The following applies nationwide: Anyone who receives basic security in old age or a disability pension receives the Deutschland Ticket for 22.50 euros per month (instead of the regular 58 euros).

Living to rent has become significantly more expensive in recent years. For all seniors who have to spend 40 percent or more of their pension on rental costs, the consumer advice center recommends submitting an application for the “housing benefit plus” reformed in 2023. A heating cost subsidy is also possible.

The application contains around a dozen pages and is similar to tax forms. But the hard work can pay off: on average, eligible pensioner households receive at least 370 euros per month.

Less well-off pensioners who live in their own four walls can apply for the so-called housing benefit for property owners. Owners, but also those entitled to inheritance, permanent residence and usufruct are eligible to apply. Important: The living space must be used by yourself.

The application to the local housing benefit authority must provide information about the number and total income of all household members and the amount of financial burden, along with supporting documents. Charges that can be taken into account include building loans (interest and repayment), maintenance costs (a flat rate of 36 euros per square meter of living space annually), property tax and management costs.

The costs for health insurance have increased significantly at the beginning of 2025: those with private insurance pay an average of 18 percent more, while those with statutory health insurance pay almost one percent more in additional contributions.

For compulsorily insured people, the German pension insurance automatically offsets their share, half of the contribution, and the seniors’ share with the pension paid out. The additional contribution from the health insurance funds is not shared, but is paid solely by the retirees. The only way to save is to change your cash register. Inexpensive and well-rated health insurance companies include Techniker, Hanseatic and Audi BKK.

Anyone who has private or voluntary statutory health insurance must apply separately for a subsidy, in a sense the share of the German pension insurance. This typically happens at the start of retirement. The amount of the subsidy, which is then paid out in addition to the pension, depends on the so-called general contribution rate of the statutory health insurance. This is currently 14.6 percent of income. The current additional contribution from the fund is added (for privately insured people the average value of the fund of 1.7 percent). Divided by two results in the amount of the subsidy, for privately insured people up to a maximum of half the insurance premium.

Privately insured pensioners can save money by changing tariffs within their insurance, for example by increasing the annual deductible.

Anyone who wants to accommodate relatives in need of care in a care facility knows this: the personal contribution. For the first year of accommodation, this has increased to almost 3,000 euros, according to the replacement insurance association. Per month. On national average. For many seniors, this cannot be paid for from their current retirement income. It is not uncommon for their savings to be at stake. Once these have been used up, the welfare state steps in and takes over your own contribution. The following applies: a protective asset of 10,000 euros remains untouched. The care allowance does not count as pension income.

Since 2020, children of those in need of care have only been allowed to ask the social welfare offices to pay if they have a gross annual income of 100,000 euros or more and demand so-called parental maintenance. Consumer advocates recommend legal advice in individual cases.