Parents who plan to move an early-start pension (Frühstart-Rente) into a depot of their own need to watch the deadlines. The Frühstartrentengesetz (early-start pension act), which the Bundestag adopted on 16 October 2026 (committee report, Bundestag printed paper 21/8606), distinguishes between the period up to adulthood and the period afterwards. This guide explains what the adopted version says about both.
In short: Under the Frühstartrentengesetz as adopted by the Bundestag on 16 October 2026 (section 12, left unchanged by the Finance Committee), a transfer before the completed 18th year of life must be made in full to another qualifying contract. From the 18th birthday onwards, the target is another certified retirement savings contract. The second round in the Bundesrat and promulgation are still pending. Last updated: November 2026.
Key points
- The Bundestag adopted the act on 16 October 2026, the Bundesrat still has to deliberate again, and promulgation is pending. Entry into force is planned for 1 January 2027.
- Parents can open a depot with a financial institution of their choice. Only one qualifying contract per child is funded (section 13).
- Up to the completed 18th year of life, a transfer is only foreseen in full, to another qualifying contract.
- From the completed 18th year of life, a transfer to another certified retirement savings contract is foreseen.
- Without an identification number, the draft grants no entitlement to the subsidy.
- According to the explanatory memorandum, payouts are in principle possible only from age 65.
How does the transfer work before the 18th birthday?
Under § 12 subsection 1 of the draft, a transfer before the completed 18th year of life must be made in full to another qualifying contract under § 3 subsection 1 sentence 1. The wording requires a complete transfer. A partial transfer, in which part of the balance stays in the old contract, is not foreseen by this wording.
Section 3 subsection 1 of the draft defines which contracts qualify. Read this section before any switch, because the target contract must meet exactly these requirements. An error here could mean that the transfer does not count.
| Period | Target of the transfer under the draft | Provision |
|---|---|---|
| Up to the completed 18th year of life | Another qualifying contract under § 3 subsection 1 sentence 1, in full | § 12 subsection 1 |
| From the completed 18th year of life | Another certified retirement savings contract | § 12 subsection 2 |
The table is based on the government draft of 14 August 2026. The Finance Committee left the wording of section 12 unchanged in its committee report (Bundestag printed paper 21/8606), and the Bundestag approved the act on 16 October 2026. It becomes binding with promulgation.
What applies after the 18th birthday?
With the 18th birthday, the target changes. Under § 12 subsection 2 of the draft, a transfer to another certified retirement savings contract is then foreseen. The target contract must therefore be a certified retirement savings contract, and not every contract that a provider runs meets that requirement.
For costs, a special rule applies. Under the government draft, sales and distribution costs were prohibited up to the completed 18th year of life, both at contract conclusion and for capital transfers (§ 3 subsection 2 number 1). The Finance Committee moved the ban into a closing sentence of § 3 subsection 2: until the payout phase begins, no sales and distribution costs may be charged on the part of the contract that is based on the early-start pension assets, including on transfers. The period is not entirely clear in the wording, because the introductory sentence of subsection 2 still refers to the 18th year of life. Check the costs of the new contract separately before any switch.
How many contracts does the state fund per child?
Under section 13 of the act, the early-start pension is granted for only one qualifying contract per child. A further contract is rejected, and the contract date is decisive. The only exception is a capital transfer under section 12. If you want to switch, transfer the capital rather than opening a second contract in parallel.
Which steps belong to a switch?
A switch assumes that the early-start pension has been set up. The Federal Pension Insurance Institution (Deutsche Rentenversicherung) describes the status of the procedure and its basics on its FAQ page. Before you transfer, check three points: whether the target contract is qualifying or certified, whether the child’s age fits the deadline, and whether the costs of the new contract are known.
A switch can also stall if information is missing. For this reason, the identification number of the child belongs among the first documents you keep ready. More on this is in the guide on the tax ID for the early-start pension (in German).
Which documents should you keep ready?
- Information on the child’s date of birth.
- The identification number of the child, if it is already available to you.
- The contract details of the current depot and of the target contract.
- The target provider’s information on costs and on the certification of its contract.
Which documents the provider actually requires, you learn only from the provider. The list helps you avoid delays and nothing more.
What happens if no transfer takes place?
If no switch takes place before adulthood, the balance remains with the provider you chose for the depot. How the contract continues without a switch follows from the terms of that provider. Ask before a deadline passes, and get the consequences of an omitted switch in writing.
How do transfer and payout relate?
The transfer concerns the route the money takes before payout. The draft ties the start of payouts to the age of 65, not to a particular provider. A switch should therefore not be made in the expectation of accessing the money earlier. The guide on the payout of the early-start pension (in German) explains the age limit in more detail.
How do you choose a target provider?
A target provider should not persuade you through its advertising alone. Three questions matter, and you should have them answered in writing. First: is the contract marked as qualifying or certified, depending on the phase in which you switch? Second: how high are the sales and distribution costs, and do the draft’s rules apply to them? Third: which information on the cost and fee structure does the provider supply, as § 7a subsection 2 of the draft requires?
Compare the answers side by side. A provider that does not answer these questions clearly is not suitable for a switch, however attractive its advertising looks.
Frequently asked questions
Can I simply cancel the early-start pension before 18 and open a new one?
For the period up to 18, the draft foresees only a complete transfer to another qualifying contract. Opening a new contract without a transfer is not described as a route in the wording. If in doubt, ask the Federal Pension Insurance Institution before you cancel anything.
Do I have to apply to the state for the transfer?
According to the Federal Pension Insurance Institution, the federal government does not plan a separate application for the state subsidy. Which notifications a transfer requires, you clarify with the provider of the new contract and with the Federal Pension Insurance Institution.
What about the tax ID?
The draft requires an identification number under § 139b of the Fiscal Code (Abgabenordnung). Without it, there is no entitlement under § 16 subsection 5. The details on the number are covered in the guide on the tax ID for the early-start pension (in German).
Does anything change when the child gets older?
Yes. From the completed 18th year of life, the rule for certified retirement savings contracts under § 12 subsection 2 applies. The switch is then no longer limited to qualifying contracts under § 3 subsection 1, but requires a certified contract.
What to do now
- Follow the further legislative progress (Bundesrat, promulgation), for example on the pages of the Federal Pension Insurance Institution, and wait for the promulgated text.
- Note the child’s 18th birthday as a deadline in your calendar and plan the switch before it.
- Compare the possible target contracts by costs, and check whether they are qualifying or certified.
- Clarify the child’s identification number before you start a switch.
Related guides
- Retirement 2027: The overview of depot, early-start pension and Riester
- Early-start pension registration: does a parent need to apply?
- Which children receive the early-start pension first?
- Early-start pension decided? What is settled and what is still open
- Early-start pension and tax ID: does my child need a tax number?
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.
