Germany Launches Child Pension Accounts as Aging Strains System

Germany’s cabinet approved plans for a state-subsidized retirement savings account for youngsters, part of a broader push by Chancellor Friedrich Merz’s coalition to shore up a pension system under growing strain.

Under the so-called “early starter pension,” children aged six to 18 will receive a monthly contribution of €10 into a retirement investment account, according to a document from the German finance ministry. Returns will remain tax-free until payouts begin. The scheme is set to launch in 2027, with payments for those born in 2020 and later applied retroactively from Jan. 1, 2026.