The trade association makes an urgent call to the Zuckerl coalition for reforms in the pension system. The industry sees the social system in danger. If you don’t take countermeasures here, you’ll hit the wall. “We are now allocating 30 billion euros from the budget to pensions,” said IV President Georg Knill in an alarmed interview with the “Krone”.
“If we leave the system unchanged, this subsidy would amount to one trillion euros (!) by 2050.” to increase contributions to the system. According to OECD figures, the actual retirement age is currently 61.6 for men and 60.9 for women, which is well below the OECD average.
Given the difficult budgetary situation, it is particularly important for the IV that the Zuckerl coalition does not push aside the issue of pensions. The current pension system endangers the future of the next generations and our social system based on solidarity, Knill warns. The sector also proposes an increase in the legal starting age. Knill does not provide concrete figures, but he does point to Scandinavia as an example. The retirement age must be adjusted to increasing life expectancy. The figures speak for themselves: retiring a year later would reduce the need for subsidies in pension insurance by approximately 2.8 billion euros.
Knill also proposes to abolish the automatic pension increase and to expand company and private provisions (second and third pillars). Part-time work is becoming an increasing problem. If you pay so little into the system that the state eventually has to step in to make it right, it’s no longer worth it. “It can’t work like that, our system is not set up that way, so not everyone contributes. “That’s a huge problem,” says Knill.
The IV would like politicians to inform the population better. “We could protect women in particular against the poverty trap in old age. That would be an important point,” says Julia Aichhorn, chairman of Young Industry.
No understanding for a quick completion of the civil service
The sector does not understand the quick agreement on increasing civil servant salaries without negotiations on savings in this area. That would further fuel the inflationary spiral. And there are urgent warnings against tax increases. “We already have extremely high costs.” Tax increases would further weaken our competitive position.
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.
