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The German Parliament has approved a bill called "Frühstart-Rente" (Early Start Pension), aimed at providing retirement savings for children from an early age through a monthly government contribution of ten euros invested in private accounts. Support begins with children born in 2020, with the age bracket increasing annually. The retroactive effect is calculated from January 2026, with implementation expected to start in 2027. Based on an average investment return of 7%, the savings could reach approximately 53,000 euros at retirement from the government's contributions alone, potentially exceeding 107,000 euros when including parental contributions, and possibly reaching up to 320,000 euros if parents contribute larger amounts. These amounts are not guaranteed and depend on financial market performance; they do not account for inflation or taxes. The project still requires final approval from the Federal Parliament before it can be implemented.
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