The German Cabinet approved this Wednesday the "early start pension" bill, which guarantees all children in Germany an initial capital of 10 euros per month from the state for private retirement.
Payment will start from the age of six and continue until children turn 18. This measure aims to strengthen the private pillar of the German pension system, having been initially presented last December as part of a broader bill.
Parents have the possibility to supplement this state contribution with their own earnings, creating an individual account for their children. In this way, families can voluntarily increase the amount accumulated for children's retirement.
