Union Proposes 'Frühstart-Rente' to Boost Private Pension Savings Starting in Childhood

The CDU/CSU plan would deposit €10 monthly into capital market accounts for children aged 6 to 18, aiming to build long-term financial security.

The 'Frühstart-Rente' initiative seeks to encourage private pension savings by starting contributions during childhood, funded by the state.
Under the proposal, children between 6 and 18 would receive €10 monthly in a capital market account, potentially growing to €36,000 by retirement age with no additional deposits.
Adults continuing contributions after age 18 could see their savings grow significantly, with projections exceeding €70,000 or even €200,000 depending on monthly input.
The accounts would remain inaccessible until retirement, with tax-free returns to maximize savings growth over decades.
Friedrich Merz emphasized the plan as a modern alternative to traditional savings, framing it as a cost-effective complement to the existing pension system.