Pension with 70? Holzmann shakes the Austrians!

Pension with 70? Holzmann shakes the Austrians!

In a sensational appearance in ZIB2, National Bank governor Robert Holzmann had the mind boiled on Friday. With his provocative statement that many employees in Austria may have to work up to the age of 70, he caused a sensation. This remark came during a conversation about the challenges that the Austrian pension system brings with it due to demographic change and falling birth rates. Holzmann explained that the current financing of the system based on a generation contract is no longer sustainable, since that of the BabyBoomer generation, which finances a large part of the pensions, will soon leave the labor market. This was reported by Today.

In addition to the possibility of a higher retirement age, Holzmann also advocates reforms on the labor market in order to facilitate older workers. Many would like to work longer, but would come against obstacles. In the conversation, he referred to Scandinavian countries, where the retirement age is already 67 or 68 years old. Holzmann believes that this idea is conceivable for a large part of the Austrians. However, so that the pension congestion can be cushioned, the labor market for older people must be better designed. In another interview with Puls24 explained Holzmann that it was necessary to counter the challenges of the pension system.

dark forecasts and necessary savings

In the context of the economic situation, the National Bank also makes a dark forecast for the coming years: a deficit of 4.1 percent of economic output is imminent. The hoped -for positive economic growth is missing, and the demand from private consumption has not increased, as Holzmann explained in the discussion about pension reform. In order to counter this situation, he announced that savings of 7.1 billion euros will be necessary, but they are perceived painfully for the population. The upcoming challenges require quick and clear decisions on the part of the government to set the financial priorities.