The SPÖ and the trade unions currently demand that 45 years of work should be sufficient. However, experts say this is a myth: By 2022, the average retiree will have received insurance benefits for only 38.75 years.
SPÖ leader Andreas Babler is repeatedly confronted with internal crossfire in the middle of election campaigns. Currently he has silenced Georg Dornauer with his thoughts on ‘no asylum immigration’. An apology came from the Tyrolean, the unrest will probably continue.
All Red parties – including the union – agree on one point: less work pressure. And “45 years of work is enough.” There is probably little contradiction here. But this is a nice, albeit “unrealistic” slogan from the SPÖ, says Denes Kucsera, economist at Agenda Austria. He and his team have made calculations: from 2022, all pension recipients will have an average of only 38.75 years of insurance benefits. Including periods of unemployment etc. For women the number is 36 years.
Demand for system change
“We are still far from the 45 years of insurance that we often strive for,” says Kucsera. The economists calculate that in Austria this number is reached by an average of 45.6 percent of men and only 4.3 percent of women. Only 25.5 percent in total.
This affects the entire pension problem. “The retirement age in Austria remains constant and life expectancy is increasing. You spend fewer and fewer years in your working life and longer when you retire. This trend will not change.” By the year 2060, life expectancy after retirement will be another 25.3 years. According to calculations, this is 29 years for women. Currently this is 20.5 and 26 years respectively.
Bad letters from retirees
Conclusion of Agenda economist Kucsera: “An increase in the actual starting age in the planned form is not sufficient. Major reforms are needed and an automatic pension system, as is the case in most countries.” In other words, adjusting the starting age to life expectancy. Kucsera, however, is skeptical. “No party in government will tackle this issue seriously.” Agenda Austria always receives angry letters from pensioners when such warnings are issued. “They are not affected at all. It’s about the future. And how long we can continue to afford the system.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
