The Union will establish a state-subsidized capital market deposit for every child for old-age provision. This is evident from the draft text of the party’s election program, which the “Stern” newspaper reported on.
“Young people should save as much as possible for their old age” it says in the election program, which is to be decided on December 17. “Therefore, 10 euros per month will be deposited in a capital-backed and privately organized old-age provision deposit for every child from the age of 6 to 18.”
Unlike other models, such as the Grunderbe, the money will not be paid out at the age of 18, but will instead serve the purpose of old-age provision. With a monthly deposit of 10 euros and an assumed average return of 6 percent per year, every German child would have a savings capital of 2,100 euros by the age of 18. Without any further deposits by the saver, the capital would increase to 36,000 euros by the time of retirement, solely due to the expected returns.
“The returns from the deposit will be tax-free until retirement” it is further stated. The capital will be protected from state access, but not before the standard retirement age. If the monthly payment of 10 euros is continued privately from the age of 18, the example calculation shows that around 70,000 euros will be saved by the time of retirement, 200,000 euros with a monthly deposit of 50 euros, and around 370,000 euros with a monthly deposit of 100 euros.