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READER QUESTIONS

Reader question: Will retirees benefit from Germany’s energy relief package?

Students, freelancers, benefits claimants and employees are all set to get a financial boost from the German government this year - but have they forgotten about pensioners?

Elderly people on a bench in Prerow
Three elderly friends sit together on a bench in Prerow, Mecklenburg Western-Pomerania. Photo: picture alliance/dpa/dpa-Zentralbild | Jens Büttner

Record levels of inflation, spiralling energy prices and fears of shortages… the news has been getting worse and worse for consumers in recent months.

At the start the year, the government announced it would be stepping in with numerous measures to help people pay their bills during these difficult months. But as more details of the measures emerged, there appeared to be one major omission: financial support for pensioners.

To find out whether pensioners will benefit from the relief packages, it’s worth taking a look at each of the measures in turn. In most cases, pensions have sadly been left out of the equation, but there are a few things that may help cushion their rising living costs.

READ ALSO:

€9 ticket and fuel tax cut 

We’ll start with the good news: the €9 monthly travel ticket and cut in energy tax on fuel are both designed to benefit everyone, including pensioners.

Unfortunately, the fuel tax cut doesn’t appear to have dampened prices at the pump very much. However, pensioners can enjoy cheap public transport throughout June, July and August with the €9 ticket. 

Überlingen Am Bodensee

Passengers exit a regional train in Baden-Württemberg at Überlingen am Bodensee. Photo: picture alliance/dpa | Felix Kästle

This is obviously great news for retirees who live in cities and parts of the country with good transport networks – but less good news for those who use their car to get around. 

The government’s third mobility measure – an increase in the commuter allowance to 38 cents per kilometre – is also unlikely to benefit the vast majority of pensioners. This measure allows workers who commute long distances to offset some of these costs in their tax returns. 

READ ALSO: Nine of the best day trips from Munich with the €9 ticket

€300 allowance for taxpayers

This flagship energy relief measure – a one-off payment for taxpayers – is another bit of support that pensioners may miss out on. 

The one exception would be pensioners who still work a part-time job to prop up their income.

Even if you’re only working a couple of hours a week, you’ll be entitled to a €300 bonus come September. It’s worth mentioning that this is taxable – but if you don’t earn enough to pay tax, the entirety of the €300 is yours to keep.

However, there may be a way that pensioners can get hold of the money even if they don’t have a regular job. As CDU finance expert Antje Tillmann explains: “It is enough, for example, that a pensioner looks after his grandson for one hour once in 2022 and receives €12 minimum wage from his children in return as part of a mini-job or from self-employment.

“Subsequently, he declares this income in the tax return and gets the energy price lump sum paid out in May 2023.”

READ ALSO: Who gets Germany’s €300 allowance – and when?

One-time heating allowance

As part of its first energy relief package, the government announced that recipients of housing benefit would be eligible for a one-time payment to help with their heating costs.

This is set at €270 for a one-person household and €350 for a two-person household, plus €70 for each additional family member. 

Pensioners who received housing benefit at any time between October 2021 and March 2022 should be eligible for this allowance, as well as people who currently receiving it. 

Pensioner counting money

A German pensioner counts cash in the kitchen. Pensioners who receive social support from the state could be eligible for one-off payouts. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

One-time allowance for benefits recipients

Pensioners who receive Grundsicherung (basic allowance) should be eligible for a one-time lump sum of €200, which will also be paid out to Hartz IV recipients.

Other allowances, such as the €100 Kinderbonus and €100 for people receiving Arbeitslosengeld I, are sadly unlikely to apply to pensioners. 

Scrapping of the EEG levy

The Renewable Energy Act (EEG) levy, which adds about 3.7 cents per kilowatt hour onto consumers’ energy bills, is set to be scrapped on July 1st.

This should benefit anyone with an electricity contract, including pensioners.

Tax relief measures

The government is raising the tax-free allowance for 2022 to €10,347 and raising the value of automatically deductible expenses to €1,200 per year.

Neither of these measures will benefit pensioners who don’t pay tax. 

READ ALSO: KEY POINTS: What Germany’s budget means for you

To sum up: Which measures can pensioners benefit from?

  • €9 ticket (for public transport users)
  • Fuel tax cut (for drivers)
  • Scrapping of EEG levy 

Pensioners claiming welfare could also benefit from:

  • €270 allowance for housing benefit recipients, and
  • €200 allowance for Grundsicherung recipients

Pensioners do seem to be getting a slightly raw deal in comparison to those in employment. However, there are some general measures they may benefit from, and those who are already getting help from the state should also receive a small income boost. 

READ ALSO: EXPLAINED: Germany’s plans to ditch sanctions for the unemployed

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For members

READER QUESTIONS

Can I get German citizenship and immediately move abroad?

German citizenship comes with perks, including freedom of movement in the EU. But some foreign residents are wondering if newly naturalised Germans get to enjoy these rights immediately or if they have to wait for a period of time before moving abroad.

Can I get German citizenship and immediately move abroad?

For those whose work and family lives allow it, freedom of movement and the ability to live and work in other member countries can be one of the best perks of European Union (EU) citizenship.

German citizens with the ability to work remotely may choose to spend the coldest months of the year near a sunny beach in Spain, for example. Likewise when summer heatwaves start to come on, they can move up to the Nordics, and all without applying for any visas or work permits.

Ahead of Germany’s new dual citizenship law taking effect on June 26th, some readers are wondering if it really is possible to naturalise as a German citizen and then immediately move to another European country – or even further afield. 

Here’s what is allowed with German citizenship regarding movement and employment across the EU:

Can I leave Germany as soon as I get citizenship?

The basic answer is yes, once citizenship is granted you can legally move to another European country indefinitely if you want to.

Asked how EU rules apply for foreigners who naturalise, immigration lawyer Sven Hasse told The Local, “With their naturalisation, third-country nationals also acquire EU citizenship in addition to German citizenship and thus freedom of movement rights within the EU in accordance with the Freedom of Movement Directive.”

There are no unique terms and conditions that apply for foreigners or dual citizens, nor is there any sort of probation period on citizenship once it is granted.

In fact, after citizenship is granted it can only be repealed for a few very specific reasons, such as joining a foreign military or it being revealed that you lied on your citizenship application.

READ ALSO: When can your German citizenship be revoked?

So, theoretically, if you gained German citizenship today you could move to Italy tomorrow, and there would be no reason, at least from a legal perspective, that you would need to return.

What are EU citizens’ residence rights?

EU citizens have the right to move to any EU country to live, work, study, look for a job or retire.

According to the European Union’s official website, “You can stay in another EU country for up to three months without registering there”.

After three months, depending on where you are staying, you may need to register your residence there. But provided you register according to the local regulations, you can then continue to reside there for longer.

In many EU countries, you may need to carry your German identity card or passport with you. In some cases you could be fined or temporarily detained if you’re caught without your identity documents, but it is not reason enough to make you return to your home country.

Additionally, in most cases, if you live legally in another EU country for a continuous period of five years, you’ll automatically acquire permanent residence there.

READ ALSO: 8 reasons why German citizenship trumps permanent residency 

Flight over Germany

A flight over Germany. Photo: picture alliance/dpa | Julian Stratenschulte

Indeed, freedom of movement is a huge benefit to millions of EU citizens who are therefore free to travel much more easily and also to seek work internationally within the EU region.

The popularity of benefits such as this could be one reason why far-right parties have stopped talking so much about leaving the EU in the current election cycle.

READ ALSO: From Swexit to Frexit – How Europe’s far-right parties have ditched plans to leave EU

Perks of the red eagle passport

Along with the ability to live and work across the EU, German citizenship comes with a sought-after passport. 

Passports are ranked by the number of countries they allow you to travel to without needing a visa.

In 2024, the German passport is the second most powerful in the world after the United Arab Emirates passport, according to Passport IndexGermany shares its 2nd place status with France, Italy, the Netherlands, Luxembourg, Spain, Austria and Switzerland.

Currently, German citizens get visa-free access to 143 countries, and another 43 countries offer a visa-on-arrival for Deutschland Reisepass holders.

In comparison, the UK passport has the 5th most powerful ranking – along with Singapore, the Czech Republic and South Korea – granting entry to 174 countries. The US, Canada and Australia all share the 7th most powerful passport ranking with access to 172 countries.

Lower down on the list, Kenyan passport holders have access to 100 fewer countries than German passport holders, for example. Similarly, India’s passport has the 66th ranking and allows entry to 73 countries.

On a practical level, having a powerful passport ranking simply means there are more places that you can travel to with relative ease. So, even if you don’t plan on moving elsewhere with your citizenship, the German passport is not a bad one to have.

Coming from countries with weak passports can make moving abroad, or even traveling, very difficult. For some citizenship applicants, being granted a German passport could significantly improve their mobility and access to certain countries.

READ ALSO: Passports – what are the rules for dual nationals travelling in Germany?

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