A commentary by our author Klaus Bastian
The draft legislation on long-term care from June 2026 announces plans to roll back the €100,000 income threshold for parental support obligations in a separate procedure. This move is driven by rising municipal expenditure on long-term care assistance. Consequently, young families would be required to pay for the care of their parents, the needs of their own children, and their own private retirement provision. At the same time, there is a shortage of affordable housing and—in many areas—adequate care services. Further reform plans concern the “income splitting” tax system for married couples and the provision of premium-free health insurance coverage for spouses. These measures would impact the income, asset accumulation, and future pension entitlements of young parents.
Parental support obligations hit families across three generations
Since 2020, a €100,000 income threshold has generally protected adult children from having social welfare agencies seek reimbursement from them. However, the draft bill does not immediately abolish this limit; instead, it announces a subsequent legislative process. This would result in parental support obligations once again affecting significantly more families. The state aims to reduce municipal long-term care costs by shifting a larger share of the bill onto relatives.
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Young adults are already funding current pension, health, and long-term care benefits. In addition, they pay for their children’s food, childcare, education, and housing. At the same time, they are expected to make private provisions for their own old age. If the social safety net fails, the cost of caring for their parents becomes a third financial burden. In effect, a single generation is expected to secure the past, the present, and its own future.
Children entail costs regarding income, housing, and retirement planning
In 2026, the child benefit stands at 259 euros per month. However, in 2023, couples with minor children spent an average of 782 euros more than childless couples. It is not just spending on food and clothing that rises; families require larger homes, greater mobility, and additional educational resources. Consequently, for low- and middle-income households, having a child can become a risk factor for poverty.
There is also a significant gap in childcare provision. In 2025, parents reported a need for childcare for 49 percent of children under the age of three, yet the actual coverage rate was only 37.8 percent. Furthermore, fees vary widely across different federal states and municipalities. A lack of available spots or limited operating hours forces many parents to work part-time; among employed mothers with children under the age of six, the part-time employment rate was 73.7 percent in 2025.
Childless individuals often fare better within the social security system
Part-time work means lower income, reduced pension contributions, and less money for private savings. In contrast, childless individuals are more often able to work full-time continuously and build up additional wealth. Meanwhile, parents are financing the next generation of contributors. Although the pension system recognizes up to three years of child-rearing time per child, it does not compensate for long-term income losses or limited career opportunities. Consequently, the system often leaves childless individuals better off in old age.
In retirement, both parents and the childless receive benefits from the same pay-as-you-go systems. These benefits are largely funded by the very children whose upbringing was previously financed primarily by their parents. The Federal Constitutional Court has explicitly described child-rearing as a generative contribution to the functionality of such systems. Nevertheless, the federal government is planning further financial burdens for families. Starting in 2028, many individuals with statutory health insurance will have to pay an additional contribution for a spouse who was previously covered at no extra cost. The surcharge, which has already been approved, amounts to 2.5 percentage points on the insured member’s contribution-relevant income.
As long as having children feels like a financial penalty, birth rates will not rise. The planned requirement for parents to provide financial support for their own parents (parental maintenance) further exacerbates this imbalance. Parents bear the costs of raising children, often lose income, and accumulate fewer pension entitlements of their own. Yet, later on, their children help secure the provision of benefits for the childless—who are often better off financially. A system that holds families liable across three generations should not be surprised by a decline in birth rates. The fact that 288,579 German citizens emigrated in 2025 also fits this picture. While the statistics do not specify personal motives, a state that systematically disadvantages families creates incentives against having children and against a future in Germany.
Author: Klaus Bastian – Blackout News
Sources: Bundesministerium für Gesundheit (04.06.26) – Bundesgesetzblatt (29.07.26) – Tagesschau (07.05.26) – Deutsches Jugendinstitut (30.06.26) – Statistisches Bundesamt (23.07.26) – Bundesinstitut für Bevölkerungsforschung (15.07.26) – Statistisches Bundesamt (24.06.26) – Statistisches Bundesamt (01.07.26)