The Boomer Solidarity Surcharge: An Important Tool for Stabilizing Pensions

Infografik of July 20, 2025

The infographic from DIW Berlin in weekly report 29/2025 illustrates a proposed pension reform, known as the “Boomer-Soli.” It shows a box on the left with a stylized coin depicting a person with a cane. Above it, in large blue letters, is the word “BOOMER-SOLI.” Below that is the text: “Special levy (progressive above an allowance) on all retirement income: statutory, occupational, and private pensions, other pension payments, and optionally also investment income.” An arrow points to the right and is labeled “Redistribution, for example via subsidies to the statutory pension.” In the middle are two blocks of numbers: at the top in green: “+10 to +11%” with the addition: “Low-income pensioner households (1st quintile).” At the bottom in red: “–3 to –4%” with the addition: “High-income pensioner households (5th quintile).” Next to it is written: “The net equivalent income of poorer households would increase significantly.” On the right is a pie chart with a 14% mark: “Poverty among the elderly would fall from a good 18% to just under 14%.” On the far right is a scale labeled ‘Old’ and “Young.” Next to the scales is the statement: “Younger generations would not be directly burdened, as redistribution would only take place among older people.” At the bottom is the source reference: “Source: Own microsimulation calculations using the GETTSIM model based on data from the Socio-Economic Panel (SOEP) 2019.” Logos from DIW Berlin and the inscription “DIW Weekly Report 29 2025” are also located at the bottom.

© DIW Berlin

Topics: Retirement and pension provision

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