New government plans

Pensioners must save three billion

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15.03.2025 18:00

The Zuckerl coalition failed at the first attempt, the current government program provides for noticeable cuts to pensions. Savings of as much as 2.9 billion euros are planned by 2031. However, there is also good news for retired people and those who will soon be retiring. The "Krone" has an overview.

First things first: the statutory retirement age of 65 for men will not be changed. The retirement age for women is currently in the middle of a gradual increase from 60 to 65 by 2033. However, the actual retirement age is to be raised. This is based on the planned budget path for pension expenditure and planned cost reductions - savings of 1.45 billion euros are to be achieved by 2028 and 2.9 billion euros by 2031.

There are several measures to achieve this:

Retirement age: from 2026, the requirement for the corridor pension (classic early retirement) will be increased from 40 to 42 years of insurance spread over three years. The retirement age will be raised from 62 to 63 over two years. Currently, men retire on average at 62.2 years and women at 60.2 years. If the actual retirement age cannot be raised, it will be tightened up.

Sustainability mode: A statutory sustainability mode is laid down in the government program. This stipulates that if the corresponding budget path cannot be adhered to by 2030, mandatory countermeasures will be taken. This may also lead to an increase in the retirement age or contributions.

Social Affairs Minister Schumann is "not happy" about the increase in health insurance contributions. (Bild: APA/HANS KLAUS TECHT)
Social Affairs Minister Schumann is "not happy" about the increase in health insurance contributions.

Increase in insurance contributions: The increase in health insurance contributions from 5.1 to 6 percent is causing great anger among pensioners' representatives. For a gross monthly pension of 1000 euros, this is two euros net (due to the negative tax), for a gross monthly pension of 2000 euros, this is eleven euros net. In total, these measures are expected to bring 320 million euros into the state coffers.

Social Affairs Minister Korinna Schumann said in an interview with "Krone" that she was "not happy" about this increase in health insurance contributions, but that they had already been reported to Brussels and could no longer be reversed.

Relief for medication costs: As compensation for the increase in health insurance contributions, there will be relief for medication costs. The upper limit for prescription fees (two percent of annual net income) will become an upper limit for medication costs. This means that the cost of prescribed medication that costs less than the prescription fee will also be included. This means that pensioners can save several hundred euros on high medication costs. The upper limit will also be reduced to 1.5 percent of income. The prescription fee will be frozen at 7.55 euros in 2026.

"Birth lottery" will be ended: When it comes to pension adjustments, the "birth lottery", which the "Krone" has reported on several times, will be ended. In the first year after retirement, there will be an aliquot of 50 percent for everyone. Now, the later in the year you start your pension, the less you get.

More company pensions: The company pension pillar is to be opened up to everyone. A general pension fund agreement is planned. This would allow more employees to be included in the second pillar of the pension scheme. The last government also had this point in its program in 2020, but it was not implemented despite constant demands from the industry.

Exemptamount: Another eternal request from the insurance industry can be found in the program - the annual exempt amount for securing the future should be increased "within the scope of budgetary possibilities". The allowance currently stands at 300 euros and has not been increased since the 1970s.

Authorities should offer similar application options. (Bild: Rojsek-Wiedergut Uta)
Authorities should offer similar application options.

Heavy work, occupational disability: many of the government's plans have not yet been specified. For example, the government is planning to reform the rehabilitation allowance and the disability pension. Heavy work is also to be revised and carers are to be included in this scheme. The pension commission is to be depoliticized. The new composition should enable better professional discourse between science and politics. As a measure against age discrimination, the public administration should offer mandatory analogous application options.

Partial pension to be introduced: Partial retirement is also to be introduced. This is a temporary reduction in working hours from an individual cut-off date. The corresponding part of the pension account is closed to the extent of the reduction and the pension is calculated on the date to which it is due. This allows you to collect part of your pension while working. Partial retirement will be harmonized with the partial pension system, which means that partial retirement can only be taken as long as no partial pension is possible or no pension entitlement exists.

This article has been automatically translated,
read the original article here.

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