Tough for savers: If you want basic security, you first have to get rid of your savings

The Bundestag has approved the long-planned changes the end of citizen’s money decided to come into force on July 1, 2026. Basic security will bring with it many innovations that those affected should be aware of.

One of them also concerns the savings that are in ETFs (Exchange Traded Funds). This kind, to save money in the long termis now very popular – thanks in part simple apps like Trade Republic. Investors hope for a constant and secure return in order to provide for their old age.

But it is precisely these savings that could be at risk if you lose your job and want to receive basic security.

Basic security: What should be completely eliminated

Previously, new recipients of citizens’ benefit were entitled to a waiting period of twelve months, during which the housing costs were largely covered, even for more expensive apartments, and their assets remained untouched within a certain limit.

This grace period will be eliminated completely in the future. However, these tough rules only come into effect when someone switches from unemployment benefit I to basic security or is not entitled to unemployment benefit I and falls directly into basic security.

The job center then checks your assets and accommodation costs on the first day. Assets also include savings in ETFs. The saving assets are linked to age:

• up to 30 years: 5,000 euros
• up to 40 years: 10,000 euros
• up to 50 years: 12,500 euros
• over 50 years: 20,000 euros

So if a deposit is above this amount, the excess must first be used up before the basic security is paid. If a 55-year-old person has saved 30,000 euros, then 10,000 euros of surplus must be sold. This also applies if the portfolio is actually in the red.

The contradiction here is that politicians have been promoting more private pension provision for a long time, for example through long-term investments. The changes to basic security go against this because the assets saved are paid off before state support is available.

That could especially Hit people hardwho only become unemployed for a short time and therefore have to use up the savings they have saved for a long time.

Experts recommend storing an emergency fund of three to six monthly expenses in a savings account. The reserve can be used immediately if you are unemployed without applying for basic security.