Pension expert Axel Börsch-Supan is calling for a limitation on the planned pension level brake, arguing that its current structure places the heaviest strain on payroll costs. He stated in an interview with the Handelsblatt that the safety margin is prohibitively expensive and should only apply to the less wealthy segment of the population. The pension commission proposed a 48% hurdle, but according to Börsch-Supan, this measure should strictly benefit those who truly need it, making it unnecessary for better earners, thus significantly reducing the financial burden the federal government would otherwise incur.
Börsch-Supan is also highly critical of the “Swedish pension” model-which involves capital coverage within the statutory pension system. The seasoned Max-Planck researcher suggests a better approach would be to organize this coverage through supplementary company pensions. He notes that successful precedents already exist in countries like the Netherlands, Denmark, and Great Britain, and that a mandatory company pension scheme would only require additional burdens on half of all companies, as the other half already provide occupational pensions.
Furthermore, he criticizes the concept of a monopolistic state fund. Börsch-Supan explained that in such a system, the state, through its supervisory board, essentially controls investment decisions. While he concedes that state funds may generate good returns in small, highly transparent nations like Sweden or Norway, he argues that Germany is large and does not have a strong reputation for transparency. Therefore, he insists that Germany should focus on fostering competition instead.
