Prominent pension expert Bert Rürup has cautioned against a proposed supplementary levy on income from retirement benefits targeted at higher-earning retirees, describing the concept as a “misguided approach.
Speaking to the Tagesspiegel newspaper, the economist acknowledged concerns regarding increasing contribution rates and the rising need for federal subsidies within the pension system. However, he expressed firm opposition to redistribution measures within the older generation, even if intended to bolster lower pension payments.
“The DIW’s proposed ‘boomer-solidarity contribution’ is undoubtedly well-intentioned, but as is often the case, good intentions can lead to unintended consequences” Rürup stated.
He questioned the method’s effectiveness, asserting that a low statutory pension does not necessarily indicate existing poverty among retirees. Furthermore, Rürup warned that this proposed levy risks undermining efforts to encourage private and occupational supplementary pension schemes. He suggested instead prioritizing the continued development and refinement of the basic pension supplement introduced in 2021 for those with long insurance records.
Bert Rürup, a figure of significant influence in German economic policy, previously chaired the Council of Economic Advisers and led the “Rürup Commission” a panel tasked with formulating long-term reform proposals for Germany’s pension, healthcare and long-term care systems. The concept of the “Rürup pension” is named in his honor, referencing his recommendations for pension reform.