The Bundestag has decided to convert citizens’ money into a new basic security. From July 1, 2026, stricter asset rules and significantly lower allowances will apply. For ETF investors, this can mean that they have to liquidate their portfolios in the event of unemployment.
• The Bundestag has decided to convert citizens’ money into a new basic security
• The law is scheduled to come into force on July 1, 2026
• The previous waiting period of twelve months has been completely eliminated
There is no waiting period and assets are checked immediately
On March 5, 2026, the Bundestag decided to transform citizens’ money into a new basic security. This emerges from a communication from the Bundestag. The law is based on the government draft in Bundestag printed paper 21/3541 and is scheduled to come into force on July 1, 2026. The key change for savers and investors: the previous waiting period of twelve months has been completely eliminated. Until now, the assets of benefit recipients have only been checked to a limited extent in the first year, and up to 40,000 euros could remain relatively protected during this time. From July 2026, the job center will check assets and housing costs from day one.
This affects everyone who switches to basic security after receiving unemployment benefit I or ends up there directly. There will initially be little change in the standard rates: single people will continue to receive 563 euros, partners in communities of need will receive 506 euros. The tightening lies in access to benefits, not in their amount.
New allowances hit ETF portfolios particularly hard
In parallel with the asset checks, the allowances are falling drastically. According to the draft law, the protective assets will in future be staggered according to age: 5,000 euros for people up to 30 years of age, 10,000 euros up to 40 years of age, 12,500 euros up to 50 years of age and 20,000 euros from 51 years of age. The allowances apply per person within a community of needs. A four-person household that was previously able to claim up to 75,000 euros in savings assets will now only have around 30,000 euros.
ETF portfolios, stocks and funds are considered freely available assets in the basic security scheme and are fully included in the audit. A 35-year-old person with an ETF portfolio of 25,000 euros would first have to use up 15,000 euros before state benefits take effect. For a 50-year-old with a portfolio volume of 50,000 euros, 37,500 euros would have to be used before receiving benefits. The problem: Anyone who invests long-term and has to sell shares in the event of unemployment may realize losses when prices are currently weak.
Protected provision and the conflict of objectives for investors
Under the new rules, certain subsidized retirement provision products remain partially protected. Riester and Rürup contracts as well as non-cancellable company pensions are excluded from the calculation. Classic savings accounts, daily money accounts and securities deposits, on the other hand, count entirely as usable assets.
The social association VdK sharply criticizes the reform. VdK President Verena Bentele warned in a statement on the VdK website that basic security is the last social safety net. If it gets big holes now, there is a risk of a new dimension of poverty and homelessness. This creates a conflict of objectives: politicians have been promoting private provision and investments on the capital market for years, for example through ETFs.Savings plans. At the same time, social law requires that precisely these assets must be used first in the event of unemployment. For older employees in particular, the risk of having to liquidate their reserves shortly before retirement is growing. The law still has to pass the Federal Council. The planned start date for the new basic security is July 1, 2026.
Dominik Maier, editorial team at finanzen.net
