The economy is complaining of a shortage of skilled workers. Many people want to continue working when they reach retirement age, but in Austria the insurance system ‘rewards’ hard work with higher premiums.
The economy urgently needs workers, and many people would like to continue working beyond the statutory retirement age. But those who do this are punished by the insurance system. You not only pay double for health insurance, but also for pension insurance. The contributions to the pension insurance do increase the old-age pension from the next calendar year, but these are “ridiculous amounts of two to three euros”.
Only after 15 years are you entitled to a pension from these contributions, chairman Ingrid Korosec of the Seniors Association explains in the “Krone”. She calls on the government to finally change this. “I also support any other form of tax relief for working retirees, such as tax breaks. “Work should be worthwhile,” says Korosec.
Government working group without results
The government set up a working group at the beginning of this year to encourage longer working hours, but so far nothing has been achieved. Currently, approximately 90,000 retirees continue to work in Austria. According to a study, interest in continuing to work after retirement would increase from six to 39 percent if there were tax and levy benefits. With 100,000 new retirees per year, there is a potential for up to 40,000 additional employees, Korosec calculates.
Early retirees may only earn 500 euros
The amount of additional earnings is not capped in the regular old-age pension. You can earn as much as you want, but you have to pay additional tax the following year. If you retire early, you may not earn more than 500 euros.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
