Widow's pension 2025: Can Bitcoin make sense as a hedge?

• Since July 1, 2025, higher allowances for income assessment have been in effect for widow's pensions: The monthly allowance is now €1,076.86 net and increases by €228.42 for each child entitled to an orphan's pension.
• Income above the tax-free allowance will continue to be credited at 40 percent towards the widow's pension – this means that many survivors keep more of their pension.
• In addition, statutory pensions – and thus also survivors’ pensions – were increased by 3.74 percent as of July 1, 2025.
• But especially in light of falling interest rates and persistent inflation, long-term protection of purchasing power remains an issue. Bitcoin supporters argue for a small addition of the leading cryptocurrency, especially against this backdrop.
• As a complement to overnight/fixed-term deposits and broadly diversified ETFs, it is intended to further diversify the portfolio. However, BTC is still subject to its notorious price fluctuations.
• For surviving dependents, a conservative dosage of approximately 1-5 percent is therefore only advisable, ideally through a savings plan to smooth out entry-level prices. This portion could be deducted from the amount invested in stocks/index funds, which are also considered risky investments.
• It is also important to keep your assets safe at reputable exchanges or, ideally, via a hardware wallet, as well as to keep proper documentation.
• For tax purposes, capital gains are generally considered private sales (Section 23 of the Income Tax Act). Important for pensions: It is not the invested capital, but rather income and realized gains that increase assessable income and can reduce the payment. Withdrawals should therefore be planned.
• Bitcoin would certainly be a good addition, especially given the macroeconomic situation—former hedge fund manager Ray Dalio warns of a “debt-induced heart attack” in the next five years. While the price fluctuates significantly in the short term, it should help counteract the effects of inflation in the long term.
• The rule of thumb is: the better off you are financially and the longer your life expectancy, the higher your share of “digital gold” can be. However, it's also important to always keep an emergency fund in your checking account to be prepared for urgent expenses in an emergency.
• Other cryptocurrencies are not recommended due to their much higher speculative nature.

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source

• Survivor's pension | German pension insurance