On 16 October 2026 the Bundestag passed the Frühstart-Rente, the "early-start pension": 10 euros a month paid by the state, for every child, into a deposit dedicated to retirement. The CDU/CSU and SPD supplied the majority, the Greens and Die Linke voted against, and the AfD abstained. The law is not final yet: the Bundesrat still has to give its answer.
Here is what the law contains as voted, what remains open, and what the arithmetic says about a payment of this size.
What the law provides
- Who. Children aged 6 to 18. It is phased in: 2026 covers the 2020 birth year, then, from 2027, each year adds the birth year turning 6. Older children may open a contract but do not receive the state payment.
- How much. 10 euros a month per child: 120 euros a year, 1,440 euros over the twelve years of payments. The cost to the state is put at 198 million euros in 2027, rising to 411 million by 2030.
- Where. Into a retirement deposit contract ("Altersvorsorgedepot") that parents open in the child's name, electronically and without compulsory advice. Without a contract, the 10 euros go into a federal special fund, the "Sondervermögen Frühstart-Rente", due to be set up on 1 January 2028; the rights can later be moved to an individual contract.
- Invested in what. As amended in committee, the text requires broadly diversified global shares or share funds.
- Parents' payments. Up to 6,840 euros a year on top.
- Tax. Gains are tax-free until the payout phase begins.
- Access. The state-backed capital is in principle available only from age 65.
What remains open
The Bundesrat has already stated its requests. One, that parents' extra payments into a second contract should not get tax advantages, was accepted by the federal government. The other, an easier switch at 18 for children in the special fund to a publicly managed standard contract, is to be examined. The Bundestag archive page does not give a date for the Bundesrat session. The announced start is 1 January 2027, subject to that agreement.
What 1,440 euros is worth at 65
The 10 euros are paid from age 6 to 18, then the capital stays invested until 65. The result depends almost entirely on the return, which no law guarantees. Three assumptions of a constant annual return, before fees and before inflation, as an illustration and not a forecast:
| Assumed annual return | Capital at 18 | Capital at 65 |
|---|---|---|
| 3% | €1,726 | €6,926 |
| 5% | €1,953 | €19,351 |
| 7% | €2,215 | €53,253 |
Two readings are needed. First the gap: four points of return separate 6,900 euros from 53,000 euros, because almost fifty years of compounding magnifies each point. Then inflation: at 2% a year for 59 years, one euro of 2026 is worth only 0.31 at the end, so these sums are equivalent to about 2,150, 6,000 and 16,550 of today's euros. Contract fees, which are not fixed in this calculation, come off on top.
Why it is mostly a behaviour test
Ten euros a month does not make a pension. What the scheme tries to create is an account opened for every child, a first contact with the stock market and a habit of paying in. That is the point of the special fund as a default: a child whose parents did nothing still ends up with invested capital. For families who top up, the 6,840 euro annual ceiling leaves a wide margin.
For a reader outside Germany
The Frühstart-Rente is for children resident in Germany, with a German tax identifier. It therefore does not cover a child living in France. It does matter to a Franco-German family or a parent moving across the Rhine: the residence conditions are those of the final text, to be read again once the law is published. For a child in France, the equivalent is built with ordinary wrappers (a savings account, PEA or life insurance opened in a minor's name under the parents' legal administration), without a state payment.
In IgniFI, a savings contract opened for a child is entered like any other account, with its own return and its own date, and the withdrawal plan reads the capital on the date it becomes available.
Sources
- Deutscher Bundestag, "Einführung einer Frühstartrente für Sechs- bis Achtzehnjährige beraten", text archive, week 39 of 2026; bill, Drucksache 21/7864; Bundesrat opinion, Drucksache 21/8296.
- Bundesministerium der Finanzen, questions and answers on the Frühstartrente.
- Article calculations: monthly payments of 10 euros for 144 months, constant annual return, then compounding until 65; inflation at 2% a year.