Verivox study: Career breaks for childcare impact long-term wealth

A study by the comparison portal Verivox indicates that taking a career break for childcare can significantly reduce long-term wealth accumulation. Based on model calculations, individuals who reduce or stop contributions to ETF savings plans due to childbirth could face a deficit of up to 222,000 euros by the age of 67.

The impact is heavily dependent on the duration of the break. For instance, a one-year reduction in monthly savings—driven by a decrease in income from parental allowance—could result in a loss of approximately 17,700 euros by retirement due to the lost compound interest effect.

If the career break extends beyond twelve months, the model assumes parental allowance ceases and savings stop entirely. In such scenarios, a three-year break could result in a 108,000-euro deficit, while a six-year break, lasting until a child enters school, could lead to a loss of 222,000 euros. Verivox financial expert Melanie Ulbrich noted that the primary driver of these losses is not just the missed contributions, but the loss of decades of potential investment returns.