IV President Knill

IV demands pension reforms from Zuckerl coalition

The solidarity-based social system has begun to falter. The IV, headed by Georg Knill, is insisting on reform and proposing an adjustment to the retirement age.

(Bild: Krone KREATIV/Erwin Wodicka – stock.adobe.com, APA/GEORG HOCHMUTH)

The Federation of Austrian Industry is making an urgent appeal to the coalition government for reforms to the pension system. The industry sees the social system in danger. If no countermeasures are taken, we are heading for the wall. "We are now spending 30 billion euros from the budget on pensions," IV President Georg Knill expressed his alarm in an interview with the "Krone" newspaper.

"If we leave the system unchanged, this subsidy will rise to one trillion euros (!) by 2050." In the short term, the actual retirement age needs to be adjusted to the statutory retirement age and part-time work reduced in order to increase contributions to the system. According to OECD figures, the actual retirement age is currently 61.6 years for men and 60.9 years for women, which is well below the OECD average.

The head of the Federation of Austrian Industries, Georg Knill, is calling for reforms.

(Bild: ORF (Screenshot))

In view of the difficult budgetary situation, it is particularly important to the IV that the Zuckerl coalition does not push aside the issue of pensions. The current pension system endangers the future of the next generations and our solidarity-based social system, warns Knill. The industry is also proposing an increase in the statutory retirement age. Knill does not give specific figures, but points to Scandinavia as an example. The retirement age needs to be adjusted in line with rising life expectancy. The figures speak for themselves: retiring one year later would reduce the need for pension insurance contributions by around 2.8 billion euros.

Flexi-pension

In some countries there is a flexi-pension. As the name suggests, it enables a flexible transition from working life to retirement. The later someone retires, the more they get out. For example, anyone who retires at the normal retirement age and continues to work on the side can earn as much as they like and increase their pension by paying pension insurance contributions.

Knill also proposes that the automatic pension increase mechanism be abolished and that occupational and private pension provision (second and third pillars) be expanded again. Part-time work is a growing problem. If you pay so little into the system that in the end the state has to step in again to make up for it, it no longer pays off. "It can't work like that, our system is not set up so that not everyone makes their contribution. That's a huge problem," says Knill.

Julia Aichhorn from Junge Industrie

(Bild: KANIZAJ)

The IV would like politicians to provide the population with better information. "We could protect women in particular from the old-age poverty trap. That would be an important point," adds Julia Aichhorn, Chairwoman of Junge Industrie.

No sympathy for the rapid graduation of civil servants
The industry has no sympathy for the rapid agreement to increase the salaries of civil servants without negotiations on savings in this area. This would further fuel the inflationary spiral. And there is an urgent warning against tax increases. "We already have extremely high burdens." Tax increases would further weaken our competitiveness.