Austria's pension crisis: How long do we really have to work?

Austria's pension crisis: How long do we really have to work?

Österreich - Uncertainty in the Austrian pension system grows, while the signs of economic recession condenses. As the Austrian National Bank (OENB) recently reported, economic output in Austria is expected to decrease by 0.9 percent in 2024, followed by weak growth of only 0.8 percent in 2025. At the same time, OENB-Gouveerneer Robert Holzmann warns that a reform of the pension system is urgently necessary. In ORF, he expressed that the delicacy requires the situation that older employees in particular stay in their professional life for longer - possibly up to the age of 70. This was highlighted as a consequence of increasing life expectancy that puts the current pension period under pressure.

comprehensive reforms required

In a sharp report by the Court of Auditors, the lack of a clear strategy for the affiliation of the pension system is criticized. The retirement security commission, which is responsible for long -term analysis, has been acting without chair for over two years and fails to propose necessary reform measures. "There are no clear criteria in order to be able to assess whether the pension system is sustainable," said the examiners. These uncertainties contradict the increasing life expectancy and the need to adapt the pension age to future demographic developments, since it is predicted that the effective retirement age will stagnate from the mid -2030s, despite increasing life expectancy.

In addition, it is stated in criticism that the adaptation of the pensions was insufficient and ineffective. The Court of Auditors notes that the financial burdens due to changes in pension law between 2005 and 2022 have increased significantly without transparent information about the financial consequences. In view of the upcoming increase in pension by 9.7 percent, which covers the inflation and the costs of 5.3 billion euros, the urgency of an action plan to secure the pension system becomes clear in order to minimize the financial burden on future generations. As reporting the press, the future of the Austrian pension system is uncertain if there are no fundamental questions about the structure and financing.