The government is taking the first steps to implement the announced pension reform. The most important points: tightening in the gang pension, the introduction of a new form of the pension, partial sign, anchoring a sustainability mechanism and creating a flat tax for work after retirement age.
About 2.5 million pensioners currently live in Austria, and in 2045 this will take approximately 3.25 million. So that the pension system remains functional, it is necessary to take measures, says ÖVP Club chairman August Wöginger. He talks about the “largest pension reform” since Chancellor Wolfgang Schüssel 20 years ago.
Access to the classic early board, the gang pension, is difficult. From 2026, for three years, the condition for 40 to 42 years of insurance will be increased. The inaugural age is increased from 62 to 63 for two years. The increase takes place in quarterly steps: every quarter increases for two months until the destination is reached. “It is a achievement that we live longer and longer. And that must also be reflected. With this measure we expect savings of around a billion euros in 2029/2030,” explains the Neos club director Yannick Shetty.
The details of the new partial board
At the same time, a partial administration is introduced, which can also be used from the age of 63 and 42 years of insurance. In this partial sign, as the name suggests, you can partially move and continue to work.
There will be three models:
- A quarter of work and three -quarters of them,
- Half -division
- And three -quarters of work and a quarter of a pension.
The goal is to keep people longer in working life. The advantage for the employee is that the pension of the partial council is free from a discount and that you have a higher return. The second advantage is that there is the possibility to earn more than currently with the small limit. A comparative example:
With the legal anchoring of a sustainability mechanism, the three government parties want to ensure that steps are taken to protect the pension system, even after the legislative period. The aim of the government is to reduce the expenditure of currently 30 billion euros for pensions. This is now a quarter of the total government spending of 123 billion euros.
Spö: pensioners must also make contributions
“The pension package is an important part of the government program. We have never made a secret of the fact that unfortunately should also be saved between pensioners. I can only ask you to make your contribution to budget hernovation. We all know about the budgetary situation and the enormous debt we have taken over from the previous government,” said Minister of Social Affairs (Spö). The dramatic financial situation was not caused, but you take responsibility and have been agreed to renovate the budget.
Airbag for the budget
“The sustainability mechanism is nothing more than a kind of airbag for the budget, so that if these measures do not apply, the next government will certainly take more measures to guarantee the sustainability of the pension system,” Shetty explains. The future government can then choose from a bundle of measures to achieve the goals. This can be a recovery of the insurance theater for the Corridor Board, an adjustment at the start of the age, the contribution percentage, the account percentage and so on.
Another topic is employment among older employees. For the 55 to 64 year olds, this is currently 57.3 percent. It is 65.4 for men, 49.4 percent for women. This difference is also the result of the low inaugural age of women (61.5 years). This is currently adapted to that of men (65 years) in half -year steps (between 2024 and 2033). To be able to take targeted measures, the government introduces a monitoring instrument to increase industries in which people work longer.
The Act on the Partial Council will be sent to the assessment on Friday, the person for sustainability mechanism will come over the year.
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.
