German Government Introduces Early Child Pension Scheme

From 1 January 2027, a new "Frühstartrente" will provide a state‑funded pension contribution of €10 per month for every child born from 2020 onward. The monthly amount is deposited into a certified stock‑market pension account and will be saved until the child reaches 18. All children who receive child benefit are eligible.

Consumer watchdog Verbraucherzentrale Baden‑Württemberg urges that the collective investment option, originally intended only as a fallback for families without a private account, become the standard arrangement from the sixth year of life. The centre argues that a mandatory, low‑cost, diversified stock investment protects parents from commercial pressure and ensures consistent savings. Parents may still choose a private pension account if they wish.