Financial Terms Glossary
The most important financial terms - with simple and concise explanations.
Early Start Pension (Frühstart-Rente)
The Early Start Pension (Frühstart-Rente) is a planned state subsidy instrument for children and adolescents and is designed to complement the reform of private retirement provision. Its aim is to build up initial capital for a capital-funded retirement provision at an early stage.
From the age of six, the state is expected to pay monthly €10 into an individual, capital-funded retirement account.
Upon reaching the age of majority, the account is intended to transition seamlessly into the tax-subsidised Retirement account (Altersvorsorgedepot). Earnings remain tax-free until retirement. The introduction of the Early Start Pension is planned to take effect retroactively from 1 January 2026.
(Status: Key points paper, December 2025.)