Pension saving for families

With children, the budget is often tight – and that is exactly when your own pension saving easily slips into the background. The new subsidy is built so that even small contributions are topped up noticeably.

Small contributions, high subsidy rate

From 2027 the child allowance (Kinderzulage) is 100% of your own contribution, at most €300 per child. Together with the basic allowance (Grundzulage), the subsidy can be higher than your own contribution when contributions are small.

The table shows the basic and child allowance for one eligible parent who receives the child allowance for all the children.

Who gets the child allowance?

The child allowance is paid only once per child. It goes to the parent to whom child benefit (Kindergeld) for that child has been awarded. For married parents, additional allocation rules apply – you should clarify this before taking out a contract.

If one parent is not in paid work

Anyone who is not eligible themselves can be indirectly eligible through their spouse. This requires a contract of their own with a contribution of at least €120 a year. In this case the basic allowance is limited to €175 and depends on the contributions of the eligible spouse.

The child allowance is limited in time

The child allowance is only paid for as long as child benefit is paid. After that, the basic allowance remains. In our calculator you can state for how many more years you expect child benefit.