Early start pension (Frühstart-Rente)

The Frühstart-Rente ("early start pension") is a planned state-funded children's investment account in Germany – one of the country's most ambitious retirement provision projects.

How it is supposed to work:

• Who gets it? Every child from the age of 6 – automatically, without applying
• How much? €10 per month from the state
• Where to? Into a subsidised securities account (ETFs or similar products)
• Access? Only from the statutory retirement age
• Taxes? Income during the savings phase is tax-free

What it could turn into:

• €10/month × 12 months × 60 years = €7,200 paid in
• At an average 7% return: approx. €50,000–60,000 at retirement
• That alone won't close the pension gap, but it's a start

Why so important? Demographic change is making the statutory pension less and less reliable. The early start pension is meant to make funded retirement provision accessible to EVERYONE – not just families who can afford a private ETF savings plan.

Status (2026): the law is due to be passed in 2026, with a likely start in 2027. The exact details (which ETFs, who manages the account, are additional payments possible?) have not yet been decided.