Measures demanded

Political dispute over pension figures and reform

The cost of pensions continues to rise.

(Bild: dpa/Andreas Gebert)

Today, there are 2.5 million pensioners compared to five million insured persons. By 2070, this ratio will be 3.4 to 5.4 million. The next government is called upon to take action. However, pensioners' representatives are urging caution and are correcting some of the figures.

The figures can be easily illustrated with the pension burden ratio: It is going up from the current 584 pensions per 1000 insurance relationships to 736 in 2070. The cost of pensions will rise from the current 11.7 percent of GDP to 16.1 percent. In view of this development, many experts are calling for an increase in the retirement age. However, pensioners' representatives warn against rushing into action and dispel myths. 

System cannot remain as it is
"I am not one of those who say that everything should and can stay as it is," says Seniors' Association President Ingrid Korosec. That is not a long-term option, not even for the pension system. The latest report by the Pension Commission last Friday showed that economic, social and demographic developments require adjustments in the medium to long term. However, the premise must be "reliability and fairness".

Korosec demands "reliability" from politicians

(Bild: Martin Jöchl)

"The average pension for women is currently 1409 euros net, for men it is 2374 euros net. We don't need ideas on how to cut pensions, but how to adjust the pension system so that pensioners can continue to receive a pension worth living on in the future," said the President. The pensioners' representatives reject an increase in the retirement age to 67. This is because the problem lies with the actual retirement age.

Many retire due to illness
Currently, around 44 percent of people between the ages of 55 and 64 do not retire directly from employment, but from sick leave or unemployment. On average, men only work until the age of 61.6. If everyone worked until the statutory retirement age of 65, this would generate 2.8 billion euros per year. And by 2033, the retirement age for women will be the same as for men - i.e. 65. This will also reduce state subsidies because women will be working longer. This adds up to a total of around 10 billion euros, emphasizes Korosec.

There is a lack of age-appropriate jobs
She warns all "public discussants" and appeals to the government negotiators: "We need a fact-based discussion, reliability and transparency instead of uncertainty." The Seniors' Association is calling for the de facto retirement age to be brought into line with the statutory retirement age. This requires age-appropriate jobs so that older employees are kept in the company for longer. Voluntary work in retirement must be made more attractive by abolishing levies and taxes and investments in prevention are needed so that people can grow old in a healthier way.

Pensioners' association warns of poverty in old age
Pensioners' Association President Peter Kostelka expressed a similar view: "We must not allow more pensioners in Austria to slide into the risk of poverty." When it comes to retirement age, "first and foremost we need an age-appropriate working environment to make working longer possible in the first place - we are miles away from that and that is why very few people manage to work until the statutory retirement age. This shows where we need to start," says the pensioners' association.

Kostelka is strictly against cuts.

(Bild: Kristian Bissuti)

"Wifo studies not uncontroversial"
Kostelka questions the commission's figures. The basis for the "pension cut proposals" are forecasts by the Pension Commission and a study by WIFO, both of which are by the same author. "These works are not uncontroversial. According to experts from the Chamber of Labor, the assumption of the calculations is questionable because they simply extrapolate the crisis scenarios of recent years," says Kostelka. Nevertheless, the long-term forecast shows that the costs for pension expenses will not rise exorbitantly by 2070. This had already been shown by the EU Commission's Ageing Report - a cross-national forecast of European pension systems up to 2070 - at the beginning of the year, according to Kostelka.