Germany Launches Child Pension Accounts as Aging Strains System

Germany’s cabinet approved plans for a state-subsidized retirement savings account for youngsters, part of a broader push by Chancellor Friedrich Merz’s coalition to shore up a pension system under growing strain.

Under the so-called “early starter pension,” children aged six to 18 will receive a monthly contribution of €10 into a retirement investment account, according to a document from the German finance ministry. Returns will remain tax-free until payouts begin. The scheme is set to launch in 2027, with payments for those born in 2020 and later applied retroactively from Jan. 1, 2026.

The government only recently approved ...