Government's Pre-Retirement Benefits Program
In a surprising development, the coalition of CDU/CSU and SPD in Germany has announced plans for an early start pension for children aged 6-18, set to begin on January 1, 2026, according to the coalition agreement. However, it's essential to clarify that, as of mid-2025, no official early start pension scheme for this age group has been outlined or widely reported in publicly available official or financial expert sources.
The existing pension system in Germany requires contributions and a minimum retirement age (usually 67), and benefits primarily come in the form of child benefits (Kindergeld), which are monthly payments to families to assist with the costs of raising children. As of 2025, this benefit amounts to approximately 255 to 297 euros per month per child, depending on the source and income level.
The proposed early start pension is designed to motivate families to make long-term investments, familiarize Germans with investing, and serve as retirement provision. According to Ulrike Malmendier, a member of the Council of Economic Experts, the early start pension is intended to encourage long-term investments. Financial experts generally favour the early start pension, as reported by the Frankfurter Allgemeine.
However, the details regarding the early start pension are still unclear. Recipients of the early start pension will be required to attend a German school, and the invested wealth will only be paid out when the retirement age is reached. Thomas Richter, CEO of the Investment Fund Association BVI, has expressed concerns about the lack of freedom in investing and withdrawing money for the early start pension, and some financial experts consider 10 euros per month as too little for the early start pension.
It's important to note that the law may not come into effect before 2027, according to Thomas Richter's predictions. For accurate updates, monitoring official government communications from the German Pension Insurance (Deutsche Rentenversicherung) or financial policy announcements would be necessary.
In conclusion, while the proposed early start pension for children aged 6-18 in Germany is an exciting development, many details are still uncertain. As more information becomes available, we will keep you updated on this significant change to the German pension system.
The proposed early start pension in Germany, aimed at motivating long-term investments and serving as a retirement provision, is exclusively focused on the business and finance sector, as it encourages families to invest their wealth. However, the lack of concrete information on the early start pension scheme, including the freedom in investing and withdrawing the money, has raised concerns among financial experts such as Thomas Richter, CEO of the Investment Fund Association BVI.
