For women, the statutory retirement age will be raised to 65 in 2033, bringing it into line with that of men. But the fact is: men in Austria are currently retiring at an average age of 61.6. This not only means that there is a lack of manpower, but it also costs the state a lot of money. The Upper Austrian Chamber of Commerce wants to see countermeasures here.
“It’s about having good, sensible systems that make working longer attractive and enjoyable in the companies concerned,” says Doris Hummer. The chairman of the Upper Austrian Economic Chamber attacks the ‘hot potato’, the pension system, in time for government negotiations. Above all, she wants to put an end to the early retirement of healthy people from their working lives.
For men, the average age is 60.9 years
Men currently retire on average at 61.6 years, women at 60.9 years. For the latter, the retirement age will now be gradually increased to 65 years in 2033. How this affects the actual retirement age has not yet been statistically determined. When it comes to men, one thing is clear: they disappear from the working world too early.
“Only a third of men retire regularly,” says Martin Halla, professor at the Vienna University of Economics and Business. The economist analyzed the data and found: “In Austria, many men choose more free time instead of a higher pension.”
Higher discounts may lead to a reconsideration
This means that deductions are accepted for retiring under the age of 65. How can this be changed? “If I increase the deductions, the retirement age also increases – this is clearly visible in the economic literature,” Halla emphasizes. The state contributes around 30 billion euros annually to financing pensions. “The scale is extreme,” says Halla.
Companies must ‘take better care of employees’
Erich Frommwald, chairman of the industry section of the Upper Austrian Chamber of Commerce, sees the need for change not only in the system, but also in the companies themselves. “Employees often retire because a new change is coming and they don’t feel comfortable with it. The goal here is to pick them up and keep them working as long as possible.”
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.
