The reason why Germany gives ten euros a month to children born since 2020
Germany has approved a measure to raise awareness among young people about retirement. The Government seeks to strengthen its system by focusing on the smallest in the house. For this reason, it has decided that all children between 6 and 18 years old receive 10 euros per month to start saving for their future. This is an unprecedented plan in Europe with which to encourage from childhood the importance of thinking about retirement and relieve some of the pressure on its public system.
This initiative is called Kinderstartgeld or early start pension. The idea of the German Government is for young people to earn this small amount each month in an individual fund that has the name of the minor and is intended only for retirement. That is, this money cannot be used before and can only be invested by the beneficiary when the time comes for him to retire from work.
When does the Kinderstartgeld start working?
This program will begin to operate in 2026. It should be noted that it is retroactive and Only children born after 2020 can access. The German Ministry of Finance has assured that the first payments will be made from January 1, although the deployment will be gradual. What’s more, the German Government does not rule out including other age groups that have been left out in the future.
The truth is that, in addition to this fixed contribution that the Executive will make, the system allows families to add more money to that fund. In fact, for every amount parents add, may receive an additional public subsidy.
This reform also includes an incentive for young people who enter the labor market. For example, those people who contract a pension plan before reaching the age of 25 may receive a bonus of 200 euros to encourage them to save from the start in the professional field.
The German measure aims to address a demographic reality that is seen more evidently in the country every day: the rapid aging of its population. And, according to the data, in the last two decades, the number of retirees in Germany has exceeded the number of workers who are active.
