German Charity Chief Slams “Active Pension” as Unfair Tax Break for Boomers
Berlin – The head of the German Caritas Association, Eva Maria Welskop-Deffaa, has delivered a scathing critique of the federal government’s proposed “active pension,” labeling it a costly and inequitable tax giveaway to wealthier retirees. In an interview with Welt am Sonntag, Welskop-Deffaa argued the roughly €3 billion plan exacerbates existing inequalities within the social security system.
The “active pension” would allow German pensioners to earn up to €2,000 per month tax-free. While proponents argue it incentivizes continued work, Welskop-Deffaa highlighted the stark contrast faced by working parents.
“A caregiver, who re-enters the workforce after raising three children – benefiting from childcare – has every additional euro taxed,” she pointed out. “That simply cannot be right.”
Welskop-Deffaa cautioned against escalating rhetoric surrounding the planned social reforms, warning politicians to avoid fueling an already emotionally charged debate. She stressed the importance of protecting the welfare state, particularly given the potential for opposition parties to exploit any perceived weaknesses.
With Germany‘s demographic shift accelerating,Welskop-Deffaa emphasized the urgent need for solutions that foster intergenerational equity. “We need answers that can only succeed through cooperation between generations,” she stated, urging politicians to exercise restraint in their public statements and avoid inflammatory language.
About the Author: This article was originally published by Buisness Insider Germany. Daniel Zwick is an economic editor based in Berlin,covering economic and energy policy,digitization,and public sector modernization.
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