Effects of income and assets on housing allowance for pensioners
When your and your spouse's/partner's incomes have been added up, they are compared with the limit for the additional deductible. If the incomes exceed this limit, an additional deductible of 40% of the exceeding amount is taken into account. This sum is added to the basic deductible, which is the same for everyone.
The effect of income on the housing allowance for pensioners
If you live alone, your housing allowance depends on almost all your income, assets and housing costs.
If you have a spouse/partner, your housing allowance will also depend on your spouse's/partner’s income and assets and your combined housing costs. ‘Spouse’ refers to married and cohabiting spouses and partners in a registered partnership.
The following types of income, among others, affect the amount of your housing allowance for pensioners:
- earnings and income from pensions
- unemployment allowances
- income from assets, such as interest on deposits or rent income.
The incomes are reduced by the interest on other debt than consumer debt, housing loans for own home or debts of an estate. The interest on housing loans is added to the housing costs.
Which income does not affect the housing allowance for pensioners?
The amount of the housing allowance for pensioners is not affected by preferential income (e.g. care allowances and disability allowances or share in the return on an estate).
Deposits not exceeding EUR 2,000, including interest, do not affect the amount of housing allowance due to you. Your spouse/partner can also have EUR 2,000 in deposits. Any interest and dividend income exceeding EUR 2,000 is added to income. The value of the deposits is added to assets. Interest and dividend income does not, however, affect the housing allowance for pensioners if the amount does not exceed EUR 60 per year.
Effect of assets on the housing allowance for pensioners
Assets affect the housing allowance for pensioners. However, the amount of debts is deducted from the assets. Eight percent of the value of assets exceeding a certain limit is added to income.
These asset limits are as follows:
- persons living alone, EUR 16,400
- married or cohabiting couples, EUR 26,240 per couple.
However, the housing allowance for pensioners is not affected by, for instance
- the single-family home where you live
- share in an undivided estate
- share in a housing corporation