Due to the huge increase in costs, many local retirees are worried about their daily expenses. With the announcement of the inflation payments in July, it is now clear how much the cost of living will rise this year – by at least 5.8 percent. The pension association does, however, argue for more support.
Austrians have seen inflation face a significant pension increase. For the annual adjustment, the inflation rate between August of the previous year and July of the current year is relevant. While the final figures for this month are not yet available, today there is a flash estimate from Statistics Austria, which puts inflation at 9.2 percent in July.
Adjustment “almost not enough”
According to the Association of Pensions, this results in a correction factor of 5.8 percent. However, that will not be enough, emphasizes the head of the association, Peter Kostelka, in a broadcast.
He sees a value of ten percent as a ‘realistic negotiating basis’. Minister of Social Affairs Johannes Rauch (Greens) himself said a few weeks ago that the increase should go in the direction of eight to ten percent.
A ten percent increase is not an unreasonable demand given the actual prices for weekly groceries, which have risen by about 15 percent recently, Kostelka emphasized on Friday. Rather, it is the need of the hour.
Negotiation dates in August
Ingrid Korosec, president of the Senior Citizens’ Association, was more reserved, although she had expected more donations than the 5.8 percent for retirees. Extensive and targeted measures are needed before 2023 to absorb the sharp rise in prices for seniors. What these measures will look like will be part of the negotiations with Social Affairs Minister Rauch and the federal government. The dates for August are already set.
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.
