Pension reform under pressure: Will the starting age finally be raised?

Pension reform under pressure: Will the starting age finally be raised?

In Austria, the pension system is coming under increasing pressure. Ingrid Korosec, President of the Austrian Senior Citizens' Association, is now calling for the actual retirement age to be adjusted to the legal age of 65. According to Korosec, this measure would save the state around 2.8 billion euros annually. In addition, the starting age for women will be equalized to that of men by 2033, which could reduce government subsidies by around 10 billion euros. Currently, around 44 percent of people between the ages of 55 and 64 end their employment not through regular dismissal, but through sick leave or unemployment. The figures show that in 2023 men were only working until the age of 62.2 on average, underlining the urgency of these reforms. Korosec calls on those responsible in government to provide facts and act quickly instead of stoking fears, as on OTS.at reported.

Political challenges and the future of the pension system

It has been 20 years since the last comprehensive reform of the pension system, and many experts warn that pressure to reform is growing. Christoph Badelt, President of the Fiscal Council, emphasizes that the aging of society will have a negative impact on both pension and care costs. This could lead to significant financial burdens in the future. A possible solution would be to gradually increase the statutory retirement age in view of the increased life expectancy. At the moment, men retire on average at around 62 and women at around 60, which is reminiscent of the conditions in the 1970s. The Pension Security Commission was established in 2017 to monitor the financial stability of the pension system. A new chairman, Christine Mayrhuber, is taking on this challenge the press reports.

The challenges are clear: Expenditure on statutory pension insurance could increase from 12.7 billion euros to 21.8 billion euros by 2028. This is due to an increasing number of people joining pensions and high inflation. Despite forecasts to the contrary by those responsible in the Ministry of Social Affairs, action is needed to make the adjustments successful. But party political discussions often take center stage while essential reforms fall by the wayside. It is clear that the pension dialogue must reach a new level of seriousness and transparency in order to enable lasting positive changes.