Germany introduces monthly pension contributions for children

Germany is introducing a new initiative to strengthen the private component of its pension system. The measure involves a monthly contribution of 10 euros for every child aged 6 to 18, aimed at building a capital fund for their future retirement.

By the age of 18, a child is estimated to have accumulated approximately 2,200 euros. This amount can be increased if families choose to make additional contributions. The program aims to reduce inequalities between families and familiarize young people with saving and capital market investments from an early age.

Projections suggest that even without additional contributions, the 2,200 euros accumulated by age 18 could grow to as much as 53,000 euros by age 65 due to investment returns. The program will be applied retroactively from January 1, 2026, for children born in 2020, with subsequent generations being included as they reach the age of six.