Minimumsrenten

Minimumsrenten are government-guaranteed baseline incomes for retirees intended to prevent poverty in old age. They may be universal, paid to all eligible residents above a specified age, or means-tested, awarded only to those whose income falls below a defined threshold. The aim is to provide a floor to retirement income that complements earnings-related pensions, occupational schemes, and private savings.

Financing and design vary. In universal designs, benefits are typically funded from general taxation or social contributions without regard to prior earnings. Means-tested versions are funded through taxes and social transfers and may phase out gradually as other income rises. Eligibility generally depends on age, nationality or residence, and a minimum period of residence or contributions, though specifics differ by country.

Minimumsrenten interact with other pension components. They establish a floor while allowing for additional income from state pensions, private pensions, or work. In some systems, benefits are reduced as earnings increase (income testing), while others maintain a fixed benefit up to a cap.

Advantages and criticisms: Proponents argue that minimumsrenten reduce poverty, promote social cohesion, and provide security for the elderly. Critics point to high fiscal costs, potential disincentives to saving or work, and administrative complexity or gaps in coverage due to threshold effects.

See also: basic income, social pension, old-age security.