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What is the early start pension for children in Germany?

In short

The early start pension (Frühstart-Rente) is a plan under which the German state pays EUR 10 a month for every child aged 6 to 18 into a retirement investment account, EUR 1,440 in total, locked until 65. As of October 2026 it is not yet law: the Bundestag debated the bill on 25 September 2026, the planned start is 1 January 2027, backdated for children born in 2020.

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What is the early start pension for children in Germany?

What it costs

Figures from the government draft as of October 2026, plus our own sample calculation.

Example	Typical range
State payment per child	EUR 10 a month, EUR 120 a year, at most EUR 1,440
Voluntary extra contributions	up to EUR 6,840 a year
Cost cap in the standard account	at most 1 percent a year
EUR 1,440 invested until 65 at 4 to 6 percent	about EUR 11,000 to 31,000, not guaranteed
Cost to the federal budget	EUR 198 million in 2027, EUR 411 million in 2030

All rules come from the draft law and are planned, not passed.

The projection is our own calculation with assumed returns after costs, before inflation and tax.

Worked example

Child born in 2021, parents add EUR 25 a month

How the starting money works when the family adds to it. Contributions from age 6 to 18, then no further payments until 65.

State payment 2027 to 2039	EUR 10 a month, EUR 1,440 in total
Parents over the same period	EUR 25 a month, EUR 3,600 in total
Value at 65 at 4 percent a year	about EUR 40,000
Value at 65 at 6 percent a year	about EUR 110,000

EUR 5,040 paid in can grow to about EUR 40,000 to 110,000 depending on the markets, before inflation and tax. None of this is guaranteed, and the money is locked until 65.

What the draft law says

The federal government adopted the draft on 12 August 2026, and the Bundestag held its first debate on 25 September 2026 before sending it to committee. Everything in this section is therefore planned and may still change.

Under the draft, the federal government pays EUR 10 a month for every eligible child from their 6th birthday until they turn 18 into a personal retirement account invested in the capital markets. No application is needed: the allowance office at the German pension insurance (Deutsche Rentenversicherung) checks eligibility and pays.

The early start pension is not part of the state pension. It is private, invested retirement saving with starting money from the state.

Year of birth	Planned support
before 2020	no payment, an account can still be opened
2020	backdated from January 2026, first payments in 2027
2021	from 2027
2022 onwards	from the year the child turns 6

Where the money is held

Parents are meant to open a certified standard investment account (Standarddepot) for their child with a private provider, also online and without advice. There is no state product to choose.

If parents do not open an account, the Bundesbank invests the money collectively at first, and from 2028 a separate fund is planned for this. The pooled balance moves into a personal account as soon as one is opened, according to the draft up to age 35.

For providers the draft sets a cost cap of 1 percent a year during the saving phase. Sales and set-up charges are not allowed until the child turns 18.

What it can grow into

EUR 1,440 is not much money, but it has about 50 years until age 65. At 4 percent a year after costs it grows to about EUR 11,000, at 6 percent to about EUR 31,000. These figures are before inflation, and no return is guaranteed.

Your own contributions make the bigger difference. Under the draft, parents, grandparents and others may add up to EUR 6,840 a year. Returns stay tax free until payout, tax is only due in old age.

What it means for international families

What counts is the child's main residence in Germany, not the parents' nationality. The state payments are tied to that residence. If you may move abroad, check the rules of the final law on moving away before you add large sums of your own, because the account stays locked until 65 wherever you live.

Until the law is passed, there is no early start account to buy. Products advertised under this name today are not the subsidised contract. Wait for the final law and the certified offers.

Money you add yourself is locked until retirement age. If you have no emergency fund or will need the money for your child's education, keep it in a flexible savings plan instead.

Step by step

Check your child's year of birth: the draft covers children born from 2020.
Wait for the law to be passed, expected by the end of 2026.
Compare certified standard accounts, above all costs and investments.
Open an account for your child or knowingly leave the money in the pooled fund.
Decide whether and how much to add, without touching your own emergency fund.

Checklist

Child born in 2020 or later with main residence in Germany
Law actually passed before you sign anything
Account certified as a standard account for the early start pension
Costs at most 1 percent a year
Extra money only from funds that can stay locked until 65

Common mistakes

Signing an advertised children's contract now that is not subsidised at all
Counting on state money for older siblings
Paying in large sums that are later missing for education or a first car
Treating the projection as guaranteed

Questions and answers

Frequently asked

Has the early start pension been passed?

No, as of October 2026 it is a draft law. The Bundestag held its first reading on 25 September 2026; the planned start is 1 January 2027.

Do I have to apply?

Not according to the draft. The allowance office checks eligibility, and without your own account the Bundesbank invests the money in a pooled fund at first.

Does my child born in 2018 get money?

Not under the draft. Only children born from 2020 qualify. You can open an account anyway, but without state payments.

Can my child access the money at 18?

No. Payout is from 65 at the earliest. After turning 18 the child can keep paying in or transfer the balance to another certified pension contract.

How much can parents add?

Up to EUR 6,840 a year under the draft. Grandparents and others may pay in too.

Is it taxed?

Returns are tax free during the saving phase. Tax is due on the payout in old age.

Does it replace saving for my child?

No. The money is locked until 65. For education, a driving licence or a first flat you still need your own flexible savings.

Sources

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