Union plans early start pension: 10 euros for each child monthly!

Union plans early start pension: 10 euros for each child monthly!

The Union plans a state-funded “early start of the start” for children to promote private pension. Friedrich Merz, the chairman of the CDU, emphasizes the importance of early savings. According to Merz, small amounts that are created in the long term can create a considerable financial cushion in old age.

The proposal stipulates that each child between the ages of 6 and 18 should receive 10 euros per month in a capital market depot as a “starting capacity”. With an assumed annual return of 6 percent, a child would have saved around 2,100 euros at the age of 18. In the event of unchanged deposits until the pension at the age of 67, this amount could increase to 36,000 euros. If the deposits are raised to 50 euros per month after the age of 18, a capital of up to 200,000 euros could be achieved.

financing and tax regulations

The paid money should remain inaccessible to parents, state and children until the retirement. In addition, the income from the depot would be tax -free until the pension. Merz describes the “early start pension” as a digital answer to the traditional savings book. Each child would receive their own account number and could pursue the progress of its savings through an app.

The financing of this measure would cost around 700,000 young people per month for around 700,000 young people per month. The Union does not plan pension cuts and adheres to the existing legal regulation at the age of retirement. Rather, the statutory pension should be further supplemented by operational and private provision. Merz also calls for more efficiency in healthcare and consistent digitization to reduce costs.

Further information can be found on Radio euskirchen .