Prominent pension expert Bert Rürup has criticized a proposal by the German Institute for Economic Research (DIW) suggesting a special levy on income earned during retirement for higher-income retirees, labeling it a “misguided approach.
Speaking to the Tagesspiegel newspaper, Rürup acknowledged the persistent challenges of rising contribution rates and increased federal subsidies within the pension system. However, he expressed his opposition to redistributing wealth within the older generation, even if the aim is to bolster lower pensions.
“The DIW’s proposed levy is undoubtedly well-intentioned, but as we know, good intentions can often have unintended consequences” he stated.
Rürup refuted the assertion that a low statutory pension automatically indicates old-age poverty and warned that the levy could undermine efforts to encourage private and occupational supplementary pension schemes.
Instead, he advocated for continued development and refinement of the basic pension supplement introduced in 2021, designed to support individuals with long insurance histories.
Bert Rürup, a highly respected economist, previously chaired the Council of Economic Experts and led the “Rürup Commission” tasked by the German government with developing reform proposals for the long-term stability of the country’s pension, healthcare and care insurance systems. The concept of the “Rürup Rent” is named in his honour, referring to specific recommendations made during his tenure.
