Bundestag passes €10 monthly retirement grant for children from 2027
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The Bundestag on Friday 16 October 2026 passed the "Frühstartrente", a new state grant that starts retirement savings in childhood. Under the law, the federal government will pay 10 euros a month into a retirement savings account for every eligible child, from the age of six until the 18th birthday. CDU/CSU and SPD voted in favour, the Greens and the Left voted against and the AfD abstained. The Bundesrat, the chamber of the federal states, still has to approve the law before it can take effect.
The grant starts with children born in 2020, who turn six this year. From 2027, each new group of six year olds is added every year. Children born before 2020 can have such an account, but they receive no state money. To qualify, a child must have their main residence in Germany and a German tax identification number.
Over twelve years the state payments add up to 1,440 euros. The money is invested in shares and can normally only be paid out from age 65. A model calculation by the Federal Ministry of Finance, assuming a return of 7 percent a year, shows the state payments alone growing to about 2,200 euros by age 18 and about 53,000 euros by 65, but no return is guaranteed. Parents and grandparents may add up to 6,840 euros a year of their own money. Costs are capped at 1 percent, and no sales or contract fees may be charged until the child turns 18. The law is due to take effect on 1 January 2027, and for children born in 2020 the support counts back to 1 January 2026.
What parents should do: once the law is in force, you can open a certified retirement savings account for your child with a provider of your choice, online and without a consultation. The state payment is then claimed automatically through the provider, so no separate application is needed. If you do not open an account, the state invests the 10 euros a month for your child in a collective fund managed by the Bundesbank. Keep your child's tax identification number ready and follow the Bundesrat vote before signing any contract.
Sources: ZDFheute, Deutschlandfunk
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