State social benefits, such as minimum security or unemployment benefits, and minimum pensions are well below the poverty line. Adjustments should help curb inflation, but they weigh heavily on the budget.
In 2030, the federal government must contribute 19.7 billion euros to pensions. In 2035 that will already be 28.9 billion euros. You don’t have to be Adam Ries to realize that the current pension system cannot guarantee long-term care for the elderly. “Here we are riding a dead horse”, is how German philosopher Richard David Precht puts his country’s current pension system in a nutshell in his joint podcast with Markus Lanz. Also applies to Austria. Because the pay-as-you-go system, in which young people are expected to finance the older generations, is no longer up-to-date.
Minister of Social Affairs Johannes Rauch will also not be able to offer a lasting solution during his term of office. But he takes responsibility himself: “As Minister of Social Affairs, I will continue to work to ensure that people who depend on the latest social safety net can live. The upcoming adjustment of small pensions must, of course, take into account the drastic price increases, which mainly affect people with low incomes.”
The climate bonus in October (500 euros), the inflation discount (500), the energy cost reimbursement (150), the zero setting of the green electricity lump sum (100) and the savings from the reduced electricity and natural gas tax (160 ) are intended to help the minimum pensioners in the short term. term with 1410 euros, the Ministry of Social Affairs calculates. Financial support, which naturally weighs heavily on the budget.
Just like other social benefits such as unemployment benefits (€1.873 billion per year) or emergency aid (€2.162 billion per year). Red numbers that future employees will have to pay for in the coming years. Yes, the horse is dead and yes, we will ride it as long as possible.
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.
