"Everybody should be able to look forward to retirement with hope, not fear. But the truth is, that is not the reality facing many people." ✍️ @leicesterliz https://t.co/0JLy4gX9bH https://t.co/NUBY6mrGLy
Future pensioners to be worse off, government warns https://t.co/kYLAnNOYi6
UK plans revived pensions commission to tackle a savings crisis https://t.co/uI48MBnhH2 https://t.co/9j0mIyi84Z
Economists at the German Institute for Economic Research (DIW) have proposed a “Boomer-Soli” aimed at shoring up the country’s pay-as-you-go pension system as the large post-war baby-boomer cohort retires. The plan would impose a 10% surcharge on all retirement-related income—state pensions, occupational schemes, private savings and rental earnings—above a monthly allowance of €1,048. DIW’s microsimulation suggests the levy would shift resources within the retiree population: the poorest 20% of households would see disposable incomes rise by about 11%, while the wealthiest fifth would forfeit roughly 4%. Proceeds would flow into a ring-fenced fund dedicated either to supplementing low pensions or easing contribution rates, rather than into the federal budget. The proposal has met swift resistance. Former government adviser Bert Rürup warned that taxing higher pensions could discourage private and occupational saving, and commentators in the Frankfurter Allgemeine Zeitung described the measure as redistribution that leaves the system’s structural financing gaps largely unaddressed. The debate comes as the coalition readies a broader pension package and a new commission to keep benefit levels stable beyond 2030. Policymakers have yet to clarify whether the “Boomer-Soli” would replace or add to other measures that could already leave younger workers facing up to €200 billion in extra costs by 2040.