Germany agrees to give children 10 euros a month to save on retirement pensions
The so-called "early start pension" is part of a broader package of reforms of the private pension system launched by the German Government.
On Wednesday, the German Government adopted a bill to strengthen the private base of the pension system, which provides that the state will guarantee financial assistance of EUR 10 per month for children between the ages of 6 and 18 in order to create a capitalization fund for retirement.
The so-called "early start pension" now passes to the lower house and forms part of a broader reform package of the private pension system, which aims to strengthen the retirement forecast for younger generations through an individual retirement savings deposit.
"Our retirement forecast must be designed fairly between generations, including early pension and private retirement provision. With our pension decisions, we build confidence that we can guarantee safe income in old age," said German Chancellor Friedrich Merz.
Deputy Chancellor and Finance Minister Lars Klingbeil has stressed that "with the early start pension, we give young people a starting point for retirement forecasting from the outset."
"We help families save privately for their children and strengthen their financial education by making children and adolescents more predictable," he added.
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