Those who start investing early in a broadly diversified portfolio of shares, equity funds or equity ETFs can build up long-term savings and effectively prevent poverty in old age. Starting early with financial provision is particularly crucial for women, who are disproportionately affected by pension gaps in old age.

‘Financial independence begins with financial education and access to capital market investments. This should not depend on one's family background or gender,’ says Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut. ‘A well-designed early start pension can make all the difference here. It lays the foundation for sustainable retirement provision and introduces boys and girls to the topic of wealth accumulation on an equal footing.’

Early start pension as the key to equality

With the planned early start pension, the German government wants to pave the way for children to enter the world of funded pension provision. Every child of school age is to receive a deposit account into which the state will pay 10 euros per month. The funds are to remain invested in the capital market until retirement in order to make the most of its long-term positive development. The exact details of the early start pension are currently being negotiated politically.

‘Girls in particular benefit in the long term from starting to save for retirement early,’ emphasises Peucker. Women earn less on average than men and continue to take a back seat professionally and financially in favour of children and caring for relatives. ‘This is reflected in a pension gap. Those who understand early on how investing works and why long-term share savings are worthwhile will be more confident and successful in dealing with money later on.’

Deutsches Aktieninstitut therefore welcomes the Federal Government's initiative for early retirement pensions. ETFs and digitalisation have made access to the capital market easier in recent years. This is a great opportunity for all sections of the population to reap the benefits, with equal opportunities for women and men.

Financial education for all is part of this from the outset

Together with asset manager Vanguard, Deutsches Aktieninstitut has analysed how children's securities accounts are structured in an international comparison. Peucker: ‘Even if the German government lags far behind other countries with its plans, the early start pension can contribute to greater financial education. It would be a good goal to be able to celebrate World Savings Day in Germany in future as World Investment Day, as in other countries.’ 

Background

Those who have saved in shares over a period of 15 years or more have consistently achieved average returns of between 6 and 9 per cent per annum over the past 50 years. This is shown by the return triangles Deutsches Aktieninstitut on the DAX, the Euro STOXX and the MSCI World.

Those who start investing early in a broadly diversified portfolio of shares, equity funds or equity ETFs can build up long-term savings and effectively prevent poverty in old age. Starting early with financial provision is particularly crucial for women, who are disproportionately affected by pension gaps in old age.

‘Financial independence begins with financial education and access to capital market investments. This should not depend on one's family background or gender,’ says Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut. ‘A well-designed early start pension can make all the difference here. It lays the foundation for sustainable retirement provision and introduces boys and girls to the topic of wealth accumulation on an equal footing.’

Early start pension as the key to equality

With the planned early start pension, the German government wants to pave the way for children to enter the world of funded pension provision. Every child of school age is to receive a deposit account into which the state will pay 10 euros per month. The funds are to remain invested in the capital market until retirement in order to make the most of its long-term positive development. The exact details of the early start pension are currently being negotiated politically.

‘Girls in particular benefit in the long term from starting to save for retirement early,’ emphasises Peucker. Women earn less on average than men and continue to take a back seat professionally and financially in favour of children and caring for relatives. ‘This is reflected in a pension gap. Those who understand early on how investing works and why long-term share savings are worthwhile will be more confident and successful in dealing with money later on.’

Deutsches Aktieninstitut therefore welcomes the Federal Government's initiative for early retirement pensions. ETFs and digitalisation have made access to the capital market easier in recent years. This is a great opportunity for all sections of the population to reap the benefits, with equal opportunities for women and men.

Financial education for all is part of this from the outset

Together with asset manager Vanguard, Deutsches Aktieninstitut has analysed how children's securities accounts are structured in an international comparison. Peucker: ‘Even if the German government lags far behind other countries with its plans, the early start pension can contribute to greater financial education. It would be a good goal to be able to celebrate World Savings Day in Germany in future as World Investment Day, as in other countries.’ 

Background

Those who have saved in shares over a period of 15 years or more have consistently achieved average returns of between 6 and 9 per cent per annum over the past 50 years. This is shown by the return triangles Deutsches Aktieninstitut on the DAX, the Euro STOXX and the MSCI World.

Those who start investing early in a broadly diversified portfolio of shares, equity funds or equity ETFs can build up long-term savings and effectively prevent poverty in old age. Starting early with financial provision is particularly crucial for women, who are disproportionately affected by pension gaps in old age.

‘Financial independence begins with financial education and access to capital market investments. This should not depend on one's family background or gender,’ says Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut. ‘A well-designed early start pension can make all the difference here. It lays the foundation for sustainable retirement provision and introduces boys and girls to the topic of wealth accumulation on an equal footing.’

Early start pension as the key to equality

With the planned early start pension, the German government wants to pave the way for children to enter the world of funded pension provision. Every child of school age is to receive a deposit account into which the state will pay 10 euros per month. The funds are to remain invested in the capital market until retirement in order to make the most of its long-term positive development. The exact details of the early start pension are currently being negotiated politically.

‘Girls in particular benefit in the long term from starting to save for retirement early,’ emphasises Peucker. Women earn less on average than men and continue to take a back seat professionally and financially in favour of children and caring for relatives. ‘This is reflected in a pension gap. Those who understand early on how investing works and why long-term share savings are worthwhile will be more confident and successful in dealing with money later on.’

Deutsches Aktieninstitut therefore welcomes the Federal Government's initiative for early retirement pensions. ETFs and digitalisation have made access to the capital market easier in recent years. This is a great opportunity for all sections of the population to reap the benefits, with equal opportunities for women and men.

Financial education for all is part of this from the outset

Together with asset manager Vanguard, Deutsches Aktieninstitut has analysed how children's securities accounts are structured in an international comparison. Peucker: ‘Even if the German government lags far behind other countries with its plans, the early start pension can contribute to greater financial education. It would be a good goal to be able to celebrate World Savings Day in Germany in future as World Investment Day, as in other countries.’ 

Background

Those who have saved in shares over a period of 15 years or more have consistently achieved average returns of between 6 and 9 per cent per annum over the past 50 years. This is shown by the return triangles Deutsches Aktieninstitut on the DAX, the Euro STOXX and the MSCI World.