Germany's new Grundsicherung rules risk retirees' savings

On 1 July 2026 Germany will replace the Bürgergeld with a new Grundsicherung system. While the monthly benefit amounts remain unchanged, the reform eliminates the previous asset‑free period and subjects all saved wealth to immediate assessment. Claimants must now use any assets above modest exemptions – €5,000 for those under 20, €10,000 for ages 21‑40, €12,500 for ages 41‑50 and €15,000 for those 51 and older – for living costs. Private retirement holdings such as stocks, funds or ETF‑savings plans are classified as freely disposable wealth, meaning retirees may be forced to sell them, a risk highlighted by the statement “Wer gespart hat, muss erst sein Vermögen vernichten”.

The reform coincides with a 4.24 % increase in statutory pensions and higher minimum wages for care workers, while also introducing easier return of disposable e‑cigarettes. Critics, including the VdK president, warn that the tighter asset rules could jeopardize private retirement provisions for many Germans.