Germany's Care Funding Reforms Impact Millions of Seniors
Germany is adjusting long‑term care financing for millions of elderly residents. For people with care level 2, the "Verhinderungspflege" (substitution care) scheme now pays up to €173.50 per month when a regular caregiver is unavailable, with a maximum of eight weeks per year. A new Entlastungsbudget introduced in July 2025 lets care‑level 2‑5 recipients redirect up to 40 % of their monthly care‑service allowance to support daily living needs, effectively raising monthly assistance without changing the care level.
The German care‑home system limits exempt assets ("Schonvermögen") to €20,000 per couple, with additional small allowances for children in the household, and a modest personal cash allowance of €152.01 per month for those on social aid. A recent court ruling required a regional authority to fund €18,524.50 for a disabled adult’s everyday assistance.
In Austria, the number of Pflegegeld recipients rose to 508,897 in June 2026 – a 1.5 % increase year‑on‑year, with women comprising 61 % of beneficiaries. Monthly Pflegegeld payments were raised by 2.7 % on 1 January 2026, ranging from €206.20 for level 1 to €2,214.80 for level 7.
Analysts warn that dwindling cash flow into Germany’s care funds could force many nursing homes to close, leaving fewer options for future retirees.