The Vienna Chamber of Labor has opposed possible interventions in the valuation of pension accounts. Abolishing the upgrade in 2025 “would really be a clear choice,” the chamber said. There is also harsh criticism from the NEOS and the Greens.
According to reports, the FPÖ and ÖVP plan to reduce the rating, as the “Krone” has already reported. “Anyone who has not yet retired will have their rights drastically reduced,” says AK expert Ines Stilling. The savings effect would be “relatively small”.
With retroactive cuts from January 1, approximately 80 million euros could be saved in 2025. More than six billion euros are being requested this year. According to AK, the effect of the measure would extend over the next 45 years. The bottom line is that there would be “terrible pension cuts” for those who work. Stilling calls the argument that only boys are affected false. Those “who have already paid more” would especially feel the cuts.
Tens of thousands of euros are at stake
Without the increase, all pension entitlements accrued to date would be reduced by six percent. According to AK, with an old-age pension of 3,000 euros, this would amount to a monthly loss of 180 euros. Extrapolated over the year, this would be more than 2,500 euros, or more than 51,000 euros over the entire benefit period. For Stilling, the idea has “disadvantages for everyone.” The negotiating teams “did not think about this or accept this.”
According to the AK expert, the effects would be “significant in the long term”. An intervention would therefore be ‘treacherous’ and destroy the population’s confidence in insured pensions. According to Stilling, this “actively takes money away from people,” makes them restless and increases the risk of poverty. “Not necessarily” Stilling identified a performance incentive.
Are there alternatives?
She thinks it makes more sense to keep people in the labor market until they are 65, if possible. It is “absolutely necessary” that people can and want to work until then. You have to look at which companies do not employ people over 60. If necessary, these employers should be held liable with fines. Stilling would advocate partial retirement and better rehabilitation programs.
There is harsh criticism of the considerations of Blau-Turquoise of the NEOS. Party leader Beate Meinl-Reisinger wrote on Platform X about ‘pension theft’. “Rather than finally raising the retirement age with a long transition period, the pensions of those currently working will simply be reduced. What fraud in the workplace!”
The Greens are also shocked
Markus Koza, spokesperson for the Green Party for Labor and Social Affairs, even speaks of a “malicious” measure. The temporary suspension or reduction of the appreciation is not effective for fiscal consolidation. “The short-term effect would be a run on early retirement BEFORE the valuation is suspended, because working longer would hardly make up for the looming losses.”
The aim should be to provide incentives to stay in the labor market longer. “Oddly enough,” those praised by the FPÖ as “high achievers” would be particularly affected. In other words, employees who have been paying for a long time and have only a few years left until they retire.
According to information from the “Press”, the year 2025 could remain untouched. Instead, Blau-Turquoise is considering adjusting the value of the pension accounts in 2026 and 2027 lower than planned. Pension accounts may not be increased more than current pensions over the next two years. This would mean permanent savings for the state as it would slow down pension expenditure. Of course, future retirees would also miss out on a lot of money this way.
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.
