Retirement: Berlin needs to pay cash to kids from 6 years previous | EUROtoday

On May 22, 2025

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OUtre-Rhin too, the query of the sustainability of the retirement system arises, and in an ever extra pressing method. The authorities coalition carried by the brand new Conservative Chancellor Friedrich Merz (CDU/CSU) needs to make the topic a precedence, reviews the German press, relayed by International mail May 16. The retirement of the Baby-Boomers era will increase the variety of pensions to be paid, for all the time fewer contributors. Despite a authorized retirement age which can progressively go from 65 to 67 years by 2029, the nation wonders about its capacity to carry.

While the earlier authorities was contemplating the observe of a transition from distribution financing, as is the case at the moment, to a capitalization system, Friedrich Merz has a brand new mission: to pay kids 10 euros monthly from the age of 6, to be able to represent a financial savings for the long run.

Up to 70,000 euros due to curiosity

Concretely, these 10 euros could be paid by the State to every baby educated in a German institution till their majority. Posed on a person account and managed by the non-public sector, the pursuits generated by these sums – 6 % have been talked about by Merz – might carry the full to 70,000 euros in retirement financial savings, along with a further pension, if the grownup continues to put 10 euros monthly till his departure, defended the Chancellor. In all circumstances, the sums paid by the State couldn’t be launched earlier than retirement.

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This “early preparation” measure, estimated at 84 million euros per 12 months for the German price range, dangers not convincing the social democratic clan (SPD) of the German coalition. The capacity of future retirees to avoid wasting after their majority will certainly be largely because of their future earnings, producing heavy inequalities between the beneficiaries.

For his half, Merz defends a measure that’s each symbolic and academic: it might goal to persuade younger folks “that they must save and, above all, that Shakes are really worth it,” he defined, quoted by BFMTV. If conservatives and social democrats handle to agree on the strategies, such a tool might come into drive from January 1, 2026.

https://www.lepoint.fr/monde/retraite-berlin-veut-verser-de-l-argent-aux-enfants-des-6-ans-21-05-2025-2590211_24.php