Children in Germany will receive an 'early pension' of 10 euros per month from the state, starting from the age of 6 until 18.

The German government has approved a bill that introduces 'early pension', providing children with a monthly support of 10 euros starting from the age of six until they turn 18. This measure aims to support young people in accumulating their own wealth and to teach them about financial planning.

Vice Chancellor Lars Klingbeil emphasized that the initiative aims to reduce economic inequalities that persist throughout life. Parents can open investment accounts to add voluntary contributions, and children without individual accounts will benefit from a collective investment managed by the Central Bank.

Upon reaching adulthood, the account will be transferred into the private pension system, with tax exemptions until the money is withdrawn. Estimates show that, without additional contributions, the accumulated capital could reach approximately 53,000 euros by retirement. The 'early pension' will be retroactive from January 1, 2026, for children born in 2020 and will annually include the generation that turns six years old.