Germany introduces Mütterrente III and plans early‑start child pension

Mütterrente III will come into force on 1 January 2027, granting parents of children born before 1992 an additional roughly €20 per month per child. The reform standardises child‑care credit to up to 36 months for all children and raises pension entitlements by 0.5 earnings points per qualifying child. Because the German Pension Insurance (Deutsche Rentenversicherung) cannot process the adjustments in time, payouts will start in 2028; current retirees will receive a retroactive payment for 2027, while new retirees will see the higher amount from the first month. No separate application is required if the child‑care periods are correctly recorded in the pension account.

A recent Union Investment survey shows that 70 % of German parents already save for their children, primarily for a driver's licence (45 %) or education (43 %). Only 13 % earmark savings for a child's retirement. Awareness of the planned "Frühstartrente" – a state‑supported early‑start pension product for children – is low, with just 30 % of respondents having heard of it. Digital enrolment is favoured by many, though personal advice remains important.