The German government has approved a law that includes a subsidy of 10 euros per month for children between 6 and 18 years old, to help them save for retirement.

The German government has adopted a bill to strengthen the private pillar of the pension system, which provides a subsidy of 10 euros per month for children and adolescents aged between 6 and 18 years. This measure is part of a broader reform aimed at supporting the retirement planning of younger generations by creating an individual savings account for pensions. The payments will be retroactive from January 1, 2026, and will also include other age groups starting in 2029.

The reform introduces a pension savings account without guarantee requirements, offering greater opportunities for profitability. Additionally, parents will benefit from subsidies for contributions made, and young people who start saving before the age of 25 will receive a bonus of 200 euros. The Minister of Finance, Lars Klingbeil, emphasized the importance of financial education and support for families in saving for their children's future.