Measures required: political dispute over pension figures and reforms

The figures can be clearly shown on the basis of the pension cost ratio: this will increase from the current 584 pensions per 1,000 insurance relationships to 736 in 2070. Pension costs will rise from the current 11.7 percent of GDP to 16.1 percent. In view of this development, many experts argue for an increase in the retirement age. However, the representatives of the pensioners warn against quick decisions and debunk myths.

The system cannot remain as it is
“I am not one of those who say that everything should and can remain as it is,” says Ingrid Korosec, president of the Seniors Association. This is not a long-term option, not even with the pension system. The latest report from the Old Age Security Commission last Friday showed that economic, social and demographic developments require adjustments in the medium to long term. But the starting point must be ‘reliability and justice’.

“The average pension for women is currently 1,409 euros net, for men 2,374 euros net. We don’t need ideas on how to reduce pensions, but rather how to adapt the pension system so that retirees continue to receive a pension worth living on in the future,” he said. The representatives of pensioners reject an increase in the retirement age to 67 years. Because the problem lies with the actual starting age.

Many retire due to illness
Currently, approximately 44 percent between the ages of 55 and 64 do not retire immediately, but rather due to illness or unemployment. On average, men only work until the age of 61.6. If everyone were to work until the legal starting age of 65, this would generate 2.8 billion euros per year. And by 2033, the starting age for women will be the same as for men: 65 years. This also reduces government subsidies because women work longer. Cumulatively, this amounts to around 10 billion euros, Korosec emphasizes.

There is a lack of age-appropriate jobs
She warns all “public debaters” and appeals to government negotiators: “We need fact-based discussion, reliability and transparency instead of uncertainty.” The seniors’ association demands that the actual retirement age be adjusted to the statutory retirement age. This requires age-appropriate jobs so that older workers can stay with the company longer. Volunteer work after retirement must be made more attractive by abolishing excise duties and taxes and investments in prevention are needed so that people age healthily.

Association of Pensioners warns against poverty in old age
President of the Association of Pensioners, Peter Kostelka, makes a similar statement: “We cannot allow more pensioners in Austria to fall into poverty.” When it comes to retirement age, “first and foremost we need an age-appropriate working environment to allow for longer working hours – and we have them. We are miles away and therefore very few people manage to reach the legal retirement age. “That shows where we should start,” says the pensioners’ association.

“Wi-Fi studies not without controversy”
Kostelka doubts the committee’s figures. The basis for the “pension approval proposals” are forecasts from the Old Age Security Commission and a study from WIFO, both written by the same author. “These works are not without controversy. According to experts from the Chamber of Labor, the assumption of the calculations is questionable, because they simply continue the crisis scenarios of recent years,” said Kostelka. However, the long-term forecast shows that the cost of pension expenditure will not rise exorbitantly until 2070. The European Commission’s aging report – a cross-border forecast of European pension systems until 2070 – had already shown this at the beginning of this year, according to Kostelka.