Overview
- The DIW’s weekly report proposes a levy on all retirement incomes above €1,048 per month with proceeds earmarked for a special fund to aid lower-income pensioners.
- Simulations indicate the surcharge could reduce the poverty risk among those over 65 from just over 18% to about 14%, while the top 20% of retiree households would face an average levy of around 4%.
- Monika Schnitzer and other economic experts praise the concept as a generationally fair way to stabilize the pay-as-you-go pension system without extra charges for younger contributors.
- Johannes Winkel of the Junge Union and CDU representatives argue the plan threatens retirees’ planning security and offers no tangible relief to future contributors.
- No formal legislative measures have been introduced and stakeholders are awaiting the findings of a planned pension commission before any parliamentary action.