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Reform of the pension system: experts call for drastic measures!
Social experts are urgently calling for comprehensive reforms of the Austrian pension system to secure its financial future.
Reform of the pension system: experts call for drastic measures!
The current challenges in Austria's pension system call for urgent reforms. How Kosmo.at reports, Gabriel Felbermayr, director of Wifo, is calling for the retirement age to be raised to 67 and for this age to be linked to average life expectancy. This proposal highlights the demographic changes that have caused the ratio of employed to retired workers to fall from 4.5 in 1980 to just three in 2023. Projections suggest this ratio could fall to an alarming 1.7 by 2050.
The current situation is also a consequence of changes in other European countries. In Denmark, for example, there are plans to increase the retirement age to 74 by 2070, while in Greece the retirement age has been raised to 72.5 years. This development is seen by Austrian experts as a warning, especially in view of the drastic measures that Greece had to implement after its national bankruptcy. Tagesschau.de reported that many pensioners in Greece are under severe financial pressure due to early and massive pension cuts.
Financial burdens and reforms
The reports of pension cuts in Greece illustrate the painful consequences of these political decisions. Pensioners like Yannis Agapitos have to live on just 960 euros a month, which in many cases is not enough to cover daily expenses. This situation is not only worrying for the pensioners themselves, but also highlights the burden placed on families, who often rely on the support of older family members. Pension spending has increased sharply in Greece over the last decade, even as individual pension payments have been reduced.
The need to reform the pension system in Austria is urgently emphasized by experts to ensure a sustainable solution for future generations. The former head of the Old Age Security Commission, Walter Pöltner, points out that many important studies and reports remain unnoticed and politicians may not respond adequately to the challenges. It remains to be seen whether Austria will take similar steps to other European countries to ensure the stability of its pension system.