"Millions of baby boomers are being forced out of retirement, having realized their nest eggs don't quite make ends meet. With people living longer than ever, the issue will only get worse. It's a fate that Gen Alpha in Germany may never have to face. That's because under the German government's new plans, children as young as 6 will start saving for retirement."
"Enter the "early start pension"-a retirement program designed for children between 6 and 18 years old. Unlike your regular pension pot, which requires putting aside a portion of your salary for your future self, the country's government would pay out €10 ($11) a month to children in education under this new plan. Over 12 years of eligibility, this could accumulate to more than €1,440 ($1,700) per child, not counting the potential investment gains from compounding interest over the decade."
"A government spokesperson confirmed to Fortune that while the program's official startdate was Jan. 1, 2026, the actual payments to beneficiaries won't happen until the law comes into force, which is expected to be Jan. 1, 2027. "Strengthening pension schemes is high priority for the German government," the spokesperson said, adding that it's part of a wider overhaul. "To complement the state pension system, the government will also reform the private pension system.""
Germany will create an "early start pension" to deposit €10 monthly into accounts for children aged 6–18. Over 12 years, contributions would total €1,440 per child before investment returns. From age 18, account holders can add personal funds and earn tax-free profits. Account balances will be inaccessible until retirement age, currently 67. The program's official start date is Jan. 1, 2026, but benefit payments are expected to begin only when the law takes effect, likely Jan. 1, 2027. The measure forms part of a broader effort to strengthen public and private pension systems amid rising lifespans and longer working lives.
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