Plakolm continues – Pensions: ‘Additional costs of 700 million euros’

Above all, Plakolm clearly rejects the SPÖ requirement of plus ten percent for all pensioners. “The pension system has to bear that first. Between the statutory pension adjustment and the SPÖ’s demand, there is more than 700 million euros in additional costs,” she criticized. He goes on to say: “We cannot constantly spend more than we have and live beyond our means. It should not become normal that we constantly undermine statutory pension adjustments.”

As an argument for intergenerational justice, the ÖVP politician states that “a student certainly won’t get a pay increase of ten percent”.

The enemy is 40,000 luxury retirees
So why the luxury retirees? 40,000 pensioners receive 5,000 euros and more per month. Plakolm is a strong supporter of minimum and small pensions above 5.8 percent.

The head of the SPÖ pensioners’ association, Peter Kostelka, cannot understand the generational conflict that Plakolm locates. “There is a high level of solidarity among the young that their grandparents have enough money for life.”

Pensions increased by 1.8 percent on January 1 – inflation has been rising ever since. “Retirees pre-finance inflation. They will not receive the pension increase retroactively, while a real wage increase is being negotiated in the autumn wage rounds,” says Kostelka.

The first negotiations with Social Affairs Minister Johannes Rauch (Greens) will start next week – we will see who will prevail in the end.

The text of the “Krone” interview with Claudia Plakolm:

“crown”: Mrs Plakolm, the first talks about the pension increase will start next week. They insist on intergenerational fairness and do not want a 10 percent increase. However, such measures boost purchasing power and retirees also have higher gas bills because they spend more time at home. Did you miss that?
Claudia Plakolm: There is a statutory pension adjustment…

But it’s 5.8 percent…
I am absolutely against giving a ten percent increase to 40,000 pensioners who receive 5,000 euros or more per month. For people who have worked for 45 years and have a low pension or maybe even a minimum pension, it would be more important to support them.

Vice Chancellor Werner Kogler can envision an increase to 8.5 percent this year, but next year the pension increase should remain below inflation. Would that be intergenerational justice for you?
We now have to make a decision. I don’t think it’s wise to speculate now about what’s going to happen next year. We do not know how inflation will develop in the winter. I’d rather we talk now about how to accurately increase pensions. My aunt is at least retired and has to pay 600 euros in rent. This is where you should start.

Did you express yourself badly last week when you said no to the 10 percent increase? SPÖ Pensioners’ Association chairman Peter Kostelka said you should think before you speak.
The question is, who has expressed themselves badly here? I would be doing my job badly if I didn’t yell at the announcement of a 10 percent increase in all pensions. The pension system has to bear that first. Between the statutory pension adjustment and the SPÖ requirement, there are more than 700 million euros in additional costs. We cannot constantly spend more than we have and live beyond our means. We have a statutory pension adjustment and it should not become the norm that we constantly undermine it.

Ingrid Korosec accuses young people of paying fewer pension years because they start working later. Part-time jobs are also becoming increasingly popular, so that work-life balance is good. Shouldn’t young people show more responsibility?
Circumstances have changed enormously. When the intergenerational contract was concluded, four employees had a pension. Today three employees have a pension. In 2030 there will only be two. We have a huge need for action in this area. The older people I know say you have to give future generations room to maneuver. A student will certainly not receive a ten percent pay increase.