Parents who want to provide for their child often ask whether they should top up the state early-start pension (Frühstart-Rente) with their own money. The Frühstartrentengesetz (early-start pension act), adopted by the Bundestag on 16 October 2026, sets an upper limit for this and makes the top-up explicitly an option. This guide explains the limit, works through an example, and sets out the arguments for and against a top-up.
In short: Parents can top up the federal contributions through voluntary payments. Under § 3 subsection 3 of the act (Bundestag decision of 16 October 2026, printed paper 21/8606, unchanged from the government draft), payments beyond the early-start pension totalling up to 6,840 euros are permitted in each calendar year. Whether a top-up pays off depends on costs and on how the depot develops. Last updated: November 2026.
Key points
- The federal government pays 10 euros per month per eligible child. The Bundestag adopted the act on 16 October 2026, and the Bundesrat (second round) and promulgation are still pending.
- Parents can top up these payments with voluntary contributions.
- The ceiling for payments beyond the early-start pension is 6,840 euros in total per calendar year.
- The returns should remain tax-free during the saving phase.
- Payouts are in principle foreseen from age 65 at the earliest.
How high is the ceiling for top-ups?
Under § 3 subsection 3 of the draft, payments beyond the early-start pension are permitted up to a total of 6,840 euros in each calendar year. The figure is an upper limit and not a recommendation. The Federal Pension Insurance Institution describes the top-up as an option that parents can use, not as an obligation.
| Item | Amount per year | Source |
|---|---|---|
| State contribution (10 euros times 12 months) | 120 euros | Draft, DRV |
| Parental top-up as an upper limit | 6,840 euros | § 3 subsection 3 of the draft |
The table shows that the state contribution forms a small share of the possible total payment. The upper limit says nothing about what is sensible, however. What remains decisive is what you can afford over the long term.
Worked example: a top-up of 100 euros per month
Assumption: parents pay an extra 100 euros per month, so 1,200 euros per year. The state adds 120 euros per year. The total of 1,320 euros stays below the ceiling of 6,840 euros.
| Item (assumption) | Per year | After ten years (no returns) |
|---|---|---|
| State (10 euros per month) | 120 euros | 1,200 euros |
| Parents (100 euros per month) | 1,200 euros | 12,000 euros |
| Total payments | 1,320 euros | 13,200 euros |
Assumption: no returns, no costs and no taxes. The numbers show only the payments. Returns, costs and taxes change the final result. A comparison with an ordinary savings plan must therefore use the same assumptions, as the guide on early-start pension or savings plan for the child (in German) does.
Which arguments speak for and against a top-up?
In favour of a top-up, the returns should remain tax-free during the saving phase according to the Federal Pension Insurance Institution. The money also serves the same purpose, the provision for the child, over many years.
Against a top-up, the money is tied up until age 65. Costs of the depot work over the term and can noticeably reduce the result. No return is guaranteed, and the draft names none. Anyone who needs the money in the short term should not choose this form of provision.
When can a top-up make sense?
A top-up suits best when a family’s regular expenses leave a fixed margin and the payment can be made without pressure. Anyone who expects tight finances should first secure their own reserves before tying money up for the child. The order matters: first a reserve for everyday life, then provision for the child.
For families with several children, the question is whether the ceiling applies per child or per contract. Only one qualifying contract per child is funded, however (section 13). The act does not state expressly whether the ceiling is counted per child or per family. Ask the Federal Pension Insurance Institution before you spread amounts across several children.
How do you plan a top-up over time?
A top-up is a decision over many years, so the whole period matters. An amount that feels heavy after one year of saving becomes a different item when viewed over decades. At the same time, income, training and housing change. A top-up should therefore be planned so that it can be adjusted when circumstances change.
A fixed rule helps: a percentage of income or a fixed monthly amount. Ask the provider whether changes to the payment are easy to make. This is also a point to clarify before you sign.
Worked checklist for each year
- Review the payments made so far and check whether they stay below the annual ceiling.
- Look at the costs that were charged in the year and compare them with the information you received.
- Check whether the plan still fits your income and your household.
- Note any change in the rules before the next payment.
Frequently asked questions
Is the top-up tax-deductible?
No. Under section 29 subsection 2 of the act, which the Finance Committee left unchanged, expenses of parents or third parties cannot be claimed by them as tax-reducing. The returns should remain tax-free during the saving phase.
What happens if I pay more than 6,840 euros?
The draft does not provide for payments above the ceiling. How the provider deals with them is set out in your contract. Before any large payment, check the contract terms and ask how the provider treats overpayments.
Is there a return guarantee?
The draft names no return. A guarantee exists only if the contract expressly states one. A depot depends on the development of the capital markets. Look for guarantees in the contract itself and check which conditions are attached to them.
Do I have to top up for the child to receive the 10 euros?
The Federal Pension Insurance Institution describes the top-up as an option next to the state contribution. The draft does not require parents to pay in themselves.
Can I change my top-up later?
Whether and how payments can be adjusted, suspended or made as a lump sum is set by your contract. The draft itself describes no separate rule for this. Ask the provider about the conditions for changes, pauses and lump sums before you commit.
What to do now
- Work out which monthly top-up you can sustain without weakening your own provision.
- Check the costs of the depot before you pay money in, and ask about the cost structure.
- Wait for the promulgated text before you fix the ceiling in your plan.
- Compare the top-up with a savings plan whose costs you know exactly.
Related guides
- Retirement 2027: The overview of depot, early-start pension and Riester
- Early-start pension or savings plan for the child
- Retirement depot calculator: what ends up in the account
- Early-start pension decided? What is settled and what is still open
- When is the early-start pension paid out?
Sources: German Bundestag, printed paper 21/8606, committee report of the Finance Committee on the Frühstartrentengesetz (October 2026), German Bundestag, text archive, decision of 16 October 2026, Bundesrat printed paper 445/26, draft of a law introducing an early-start pension (14 August 2026) and Deutsche Rentenversicherung, early-start pension (page status 20 October 2026) (all in German)
Last updated: November 2026. This guide is general information, not individual advice.
