The German Bundestag adopted on October 16 the « Frühstartrente », a reform allowing children from age 6 to build retirement savings invested in the stock market with public assistance of 10 euros per month. Parents may add up to 6,840 euros per year to this savings, with funds tax-exempt during the accumulation phase and accessible from age 65. If parents do not open an account, the Bundesbank will manage public payments in a collective fund until the child transfers their rights before age 35, or they will lose them. Berlin estimates the cost of the measure at 198 million euros in 2027 and 411 million euros in 2030. The reform faces criticism regarding the risk of worsening inequality, with opponents fearing a two-tier savings system that primarily benefits families with greater savings capacity.
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