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Planned early-start pension: Parents can top up state subsidy by up to 6,840 euros per year

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Planned early-start pension: Parents can top up state subsidy by up to 6,840 euros per year
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The Federal Ministry of Finance has introduced a draft law that provides for an early-start pension for children and adolescents. Under the proposal, a basic state subsidy of ten euros per month per child would be paid.

According to the draft, parents may add up to 6,840 euros per year from private funds on a voluntary basis. This additional contribution could substantially increase the total amount available for the child’s future.

The bill is currently undergoing interministerial coordination. After this stage, it will proceed to deliberation in the German Bundestag and the Bundesrat.

The initiative aims to help families build an early financial cushion for their children, thereby supporting long-term provision and savings.

Frequently asked questions

Who is eligible to make the additional contribution?

Parents or legal guardians of children entitled to the early-start pension may make the voluntary top‑up payment.

What is the maximum total amount per year?

The state subsidy of 120 euros (10 euros × 12 months) plus the maximum private contribution of 6,840 euros yields a possible annual maximum of up to 6,960 euros.

When could the law come into effect?

No specific date has been set yet; the draft must first complete interministerial coordination and then pass the parliamentary process in the Bundestag and Bundesrat.