Threat of high losses

“New pensioners must not be the stupid ones!”

Peter Kostelka, President of the pensioners' association PVÖ, is putting pressure on the government. His aim is to prevent losses for all those retiring in 2025. But time is pressing.

(Bild: PVÖ / Ludwig_Schedl)

Following the "Krone" report, the Social Democratic Pensioners' Association (PVÖ) is now putting pressure on the government not to leave the 2025 pension cohort out in the cold. PVÖ President Peter Kostelka explains in an interview with "Krone" why new pensioners are threatened with high losses and what needs to be done about it now.

As the "Krone" reported, all those who retire next year are threatened with losses of up to 33,000 euros over their entire retirement life. Peter Kostelka, SPÖ veteran, former public prosecutor and current president of the Pensioners' Association, explains how this can be prevented.

"Krone": Everyone who retires in 2025 is threatened with severe losses. How much?
Peter Kostelka: If the government does nothing, it will be many thousands of euros for all those affected.

What are the reasons for this?
The high losses are due to two factors. Firstly, from the so-called aliquotization of the first pension adjustment and secondly from the lack of a protective clause in the pension account. The government must therefore act quickly, because the new pensioners must not be the stupid ones!

What does aliquotization mean?
This is the unfortunate regulation introduced by the current government, according to which the month of retirement determines how high the first pension adjustment will be in the following year. If you retire in January, you will still receive the full pension increase in the following year. Those who retire in February will only receive 90 percent, in March only 80 percent and so on. Those who retire in November or December 2025 will not receive a pension increase at all at the beginning of 2026. That is unfair and unjust.

What are you calling for?
That this completely illogical regulation is abolished permanently and for good - at the earliest possible date.

Hundreds of thousands of women would be financially disadvantaged for their entire retirement because of the aliquotation rule.

(Bild: stock.adobe.com)

Women are particularly affected by this regulation ...
Yes, because due to the increase in the retirement age for women - by half a year every year - most of the retirement dates for women now fall in the second half of the year. As a result, they will receive less or nothing at all when they receive their first pension increase.

Those who retire in 2024 will receive an additional "revaluation" of their pension of 6.2 percent ...
 That's right, this so-called safeguard clause was necessary because the last pension increase of 9.7 percent on January 1, 2024 was 6.2 percent higher than the revaluation of the amounts in the pension account, which was only 3.5 percent. Without this safeguard clause, those retiring this year would have suffered heavy permanent losses.

As things stand today, those who retire in 2025 are the "Gschnapsten" and are at a disadvantage.

Peter Kostelka

Will this problem persist in 2025?
Yes, because inflation is still very high. As things stand today, there is still no protection clause for 2025. In other words, those who retire in 2025 will be the "Gschnapsten" and will be at a disadvantage.

What would have to happen to prevent this from happening?
That there is also a safeguard clause for the coming year. I demand that the government submits the relevant documents to us as pensioners' representatives without delay and resolves the issue for all future periods. In times of high inflation, this is unfair and we therefore need a permanent safeguard clause to prevent losses.

Why is there time pressure?
The safeguard clause requires a law that has to be submitted to the National Council on the basis of a government bill. This must be done now so that the law can be passed in September, before the elections.

The National Council will soon be taking its summer break, but the people affected want clarity now.

(Bild: APA/EVA MANHART)

And what about the aliquot system?
The government would have to introduce an amendment to the ASVG for changes to be made, which the National Council would have to pass at its last sessions before the elections on September 18 and 19.

Sounds like there's still plenty of time ...
No, time is of the essence: the current government must complete these two points before the elections! However, the National Council will only meet from July 3 to 5 and then only once more in September for the last time before the elections. It would be ideal if clarification were provided before the summer break, because people who want or need to retire in 2025 need clarity now!

What happens if the government does nothing?
After the elections, there will be government negotiations and there is a risk that these important decisions will be lost and the 2025 pension cohort - around 110,000 people - will be severely affected.