The first consultation on pensions between Social Affairs Minister Johannes Rauch (Greens) and senior representatives will start today, Thursday. They demand a comprehensive package from the government and full compensation for inflation.
“Pension adjustment alone is not enough, we need a pension package against inflation.” The chairman of the Senior Citizens’ Association, Ingrid Korosec, argues for full inflation correction: special benefits for low pensions and medium-sized companies – this group contributes primarily to economic growth. The special payments should be subject to the government’s inflationary restraints.
In addition, a new calculation period is needed than the one from August to July. This is also the view of the chairman of the Association of Pensioners, Peter Kostelka, who calls for October to September. This better reflects real inflation.
Kostelka: Inflation will be above 10 percent in January
Kostelka caused a stir with a demand for a ten percent increase. Critics say this is unfair to all workers and future generations. He defends himself: “Until January, inflation will be above ten percent.” Pensioners would have suffered a huge loss of purchasing power due to inflation and pensions would have fallen de facto.
Well-intentioned, but “fire hazard” in the long run
Economist Dénes Kucsera of Agenda Austria states: In recent years, lower pensions (up to 2,500 euros) have been adjusted much more than inflation. From 3500 euros there is a real loss. Kucsera is for one-time payments for those in need. The extra raises are well-intentioned, but extremely dangerous in the long run. “They undermine the insurance principle and lead to significant additional expenses.” An increase of one percent costs another 580 million euros. You can still continue to increase excessively, but then you have to change the system: adjust the starting age to life expectancy.
Difficult subject. An anecdote from Kucsera: In 1992, it was decided that women should retire at age 65. The hot potato was passed on in Austrian fashion. From government to government. It should now be ready in 2033.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
