Government is planning radical pension cuts: This is how they are affected!

Government is planning radical pension cuts: This is how they are affected!

Austria's government, consisting of ÖVP, SPÖ and NEOS, is planning drastic reforms in the pension system to lift an alarming deficit of 18 billion euros over the next seven years. As Kosmo , the focus is on comprehensive savings in the pension area, including an increase in health insurance contributions to six percent. The aim is to save around 2.9 billion euros in the pension system by 2031 and to raise the actual retirement age.

pension reform and aliquoting

In order to achieve the financial goals, the government plans to increase the average age for retirement. Currently it is 62.3 for men and 60.2 years for women, significantly below the legal minimum age. In the future, employees should only be allowed to retire at the age of 63, with the number of the required insurance months being increased from 480 to 504. These measures and the associated reform of the so -called corridor pension are under discussion. The Pensioners' Association criticizes that this new regulation, which provides for an even aliquoting of the first inflation adjustment, could be an unequal burden, especially for new pensionists, since 50 percent of the increase could be lost, such as 5 minutes

In addition to increasing the age, the government wants to create incentives so that older workers remain longer at work, among other things through tax relief for employers. In addition, a new partial board is being planned, which enables working hours to reduce working hours after 42 years of working without excusing their professional life. However, critics like Walter Pöltner warn that the savings measures could be inadequate without necessary structural reforms and require a thorough revision of the pension system to ensure financial stability in the long run.