Overview
- The DIW’s Boomer-Soli proposal offers two variants that would levy ten percent on pension or wealth income exceeding a €1,000 monthly exemption, spanning statutory, occupational and private pensions with an option to tax broader asset returns.
- Experts including Jochen Pimpertz of IW Köln warn the surcharge would invalidate decades of private and statutory pension planning and discourage older workers from extending their careers.
- Monika Schnitzer of the German Council of Economic Experts supports the levy as a fair contribution from retiring baby boomers, while CDU figures such as Gitta Connemann argue it amounts to abrupt fiscal interference that could harm Germany’s competitiveness.
- The Merz government is advancing an Aktivrente to make later-life work more attractive and has delayed formal legislation until a cross-party pension commission issues its recommendations.
- The dispute highlights wider demographic challenges and intergenerational fairness issues as Germany’s pay-as-you-go pension model struggles under a shrinking workforce.