The EU CHARATION HOW ALARM: Austria's additional pensions in the crisis!

The EU CHARATION HOW ALARM: Austria's additional pensions in the crisis!

Vienna, Österreich - The EU CHARATION has pointed out significant problems with additional pensions in a current report. Accordingly, the European Union has not succeeded in promoting the expansion of company pension schemes and the European. While some countries such as Denmark and the Netherlands are leaders in the company pension scheme-Denmark reaches almost 200 % of the gross domestic product (GDP), the Netherlands almost 150 %-is 5.5 % of GDP in the lower third of the EU countries. The Austrian company pension scheme has a volume of 26 billion euros and is located in the EU midfield, such as [vienna.at] (https://www.vienna.at/eu-delungshof-warnt-vor-breben-bei-bei-bei-bei-bei-bei-bei-bei-bei-bei-bei-bei-bei-bei-ba-

Currently eight institutions of the company pension scheme are active in Austria, which protect 947,204 registered beneficiaries. An Austrian facility even offers services in Liechtenstein, the Netherlands and Germany, while three European institutions from Germany and Belgium are active in Austria. Despite this network, the report emphasizes that the European duck (Pepp), which was launched in March 2022, is not attractive due to the lack of tax incentives and an upper limit of 1 % for costs and fees. So far there is only one product of this kind with less than 5,000 savers and a volume of less than 12 million euros. The EU Department recommends the EU Commission to analyze the reasons for the low use of the Pepp.

need for reforms

The report also calls for a broader list of the retirement system in Austria and an improvement in transparency for costs and returns. An evaluation of systemic risks in company pension schemes is also required. These systems are important for social security protection and to strengthen the EU's capital markets.

In comparison, Germany shows a moderate regulation for pension expenses that make up 11.6 % of GDP. The standard age limit for pension is increased to 67 years by 2030, early exit is possible under certain conditions aged 63 years. Germany's pension expenditure is one percentage point below the EU average on GDP. The pensions are adapted according to the wage development, which allows pensioners to participate in the wealth gains of the company, such as bmas.de explained.

Problem of company pension scheme in Germany

Company pension in Germany, however, also faces challenges. A study by AON has shown weaknesses in this system, in particular the limited adaptability to demographic changes and the complexity of the BAV system, which restricts flexibility and participation. The political courage to slimming structures and introducing flexible payment forms is necessary to improve the framework conditions. At the same time, Great Britain is mentioned as a positive example, since there is a simpler and clearer BAV system, which encourages workers to take responsibility for their pension, such as [aon.de] (https://info.aon.de/die- company-im-im-Innternational- comparison-Was-koennen-- Laender-lernen/) shown.

The demand for reforms is noticeable in both countries. With the appeal to international comparisons, it becomes clear that other systems could serve as inspiration for future -oriented and flexible solutions. The need to rethink in retirement care for future generations is in the room in order to be able to react appropriately to the challenges of demographic change and financial markets.