Means-tested benefits (Bedürftigkeitsprüfung)
A means-tested benefit pays out only after a Bedürftigkeitsprüfung (means test) confirms a household's own income — and often its assets — fall below a set limit. Grundsicherungsgeld (basic income support; called Bürgergeld until July 2026), Grundsicherung im Alter (basic income support in old age), and BAföG check both income and assets; Wohngeld checks income only. Assets below the protected allowance, Schonvermögen (protected assets), don't count against the applicant.
Why it matters
Two different checks decide eligibility, and they behave differently. An income test looks at what comes in each month — salary, pension, maintenance payments. An asset test looks at what's already saved — bank balances, securities, sometimes a car or a second property. A benefit can fail one test and pass the other.
This matters for anyone with modest savings: the Schonvermögen concept means money below the protected allowance stays untouched. A small side income or a modest emergency fund does not automatically disqualify a household — the amount matters, not the mere existence of savings or extra earnings.
How the test works
| Benefit | Income test | Asset test | Notes |
|---|---|---|---|
| Grundsicherungsgeld | Yes | Yes, above Schonvermögen | Bürgergeld was replaced by Grundsicherungsgeld in the 2026 reform; the previous first-year grace period for assets (Karenzzeit) is abolished, and the protected allowance now scales with the applicant's age [1] |
| Wohngeld (housing benefit) | Yes | No, in the standard case | Based on household income, rent, and household size; no separate asset check under the regular rules [2] |
| BAföG (student support) | Yes (own and, in most cases, parental income) | Yes, above a fixed allowance | Own assets above the allowance are counted; parental assets aren't relevant to the calculation [3] |
The mechanism is the same across benefits even where the limits differ: assets up to the allowance are fully protected; only the amount above it reduces or offsets the benefit. A reasonably used car and, in the social-benefit context, an owner-occupied home of reasonable size are generally excluded from the asset count regardless of value [1].
Worked example
A 26-year-old BAföG recipient has €20,000 in savings. The applicable asset allowance (Vermögensfreibetrag) for applicants under 30 is €15,000 (2026) [3]. Only the €5,000 above the allowance counts: it's spread across the 12-month award period and offsets the monthly payment by roughly €417. The first €15,000 stays fully protected — the same amount saved by a 35-year-old applicant, who has a €45,000 allowance instead, would offset nothing [3].
The same logic — allowance first, only the excess counted — applies to Grundsicherungsgeld and Grundsicherung im Alter, though the current allowance level depends on the applicant's age and the specific rules changed with the 2026 reform.
Check yourself
What does a means test (Bedürftigkeitsprüfung) check before a benefit is approved?
What does Schonvermögen (protected assets) mean in the context of a means-tested benefit?
Which of these apply both an income test and an asset test, based on their standard rules? (select all that apply)
A BAföG applicant has €20,000 in savings. The asset allowance (Vermögensfreibetrag) that applies to them is €15,000. How many euros count as excess assets that can offset the benefit?
Sources
- Bundesagentur für Arbeit — Grundsicherungsgeld löst Bürgergeld ab, https://www.arbeitsagentur.de/grundsicherung-loest-buergergeld-ab (2026)
- Bundesministerium für Wohnen, Stadtentwicklung und Bauwesen — Wohngeldgesetz (WoGG), household income basis, https://www.gesetze-im-internet.de/wogg/ (2026)
- Bundesministerium für Bildung, Forschung und Raumfahrt — BAföG, § 29 Freibeträge vom Vermögen, https://www.xn--bafg-7qa.de/bafoeg/de/rechtsgrundlagen/allgemeine-verwaltungsvorschriften-zum-bafoeg-bafoeg-vwv/abschnitt-v-vermoegensanrechnung/zu-29-freibetraege-vom-vermoegen/zu-29-freibetraege-vom-vermoegen_node.html (2026)