Early start pension for children’s custody accounts: successfully tapping into the junior customer market
Germany’s federal government is planning to introduce the so-called Frühstart-Rente (early start pension) on January 1, 2026. In order for children and junior customers to receive the state subsidy, they will need an old-age provision custody account.
The new state-subsidized pension model will generate enormous sales potential in the strategically important junior customer segment and open up considerable growth and customer retention opportunities for banks in Germany.
Direct and neobanks in particular have already positioned themselves on the market with innovative offers for children’s custody accounts. These providers stand out against their competitors with fully digital and easily accessible products, complemented by attractive incentives. In doing so, they are setting the course for reaching young target groups quickly and easily – thereby increasing the competitive pressure on traditional institutions.