Young industry demands reforms: pension system needs changes!

Young industry demands reforms: pension system needs changes!

Julia Aichhorn, Federal Chairman of the Young Industry, said today, on April 22, 2025, at a press conference entitled "Care is difficult work". She addressed the challenges of the Austrian pension system, which is increasingly under pressure. The legislative measures to increase the factual retirement age are urgently necessary to ensure the future financial stability of the system. Aichhorn particularly appealed that a restriction of the statutory early pension options should be considered. "Individual measures must not be at the expense of the young generation," she warned.

Current data show that around 2.34 million people received a pension in 2017, of which around 1.68 million received an age pension. The entirety of the pension recipients has increased by more than one million since 1970. This demographic challenge will be further exacerbated by the increase in life expectancy and the upcoming pension of the BabyBoomer generation. Aichhorn emphasized that the dependency quotient will increase to 55 percent by 2060, which means that fewer than two employees will be responsible for every retired person.

The urgency of reforms

The pension commission has determined that access to age pensions depends heavily on legal regulations. Aichhorn underlined the need to discuss legitimate savings in the pension system in order to relieve the generation of employed people. Current studies, including one of the WIFO, have shown that only 1.7 pension insured per pensioner are now depositing. This could soon lead to a tense situation, considering that in 2030 the ratio of 2.5 and in 2050 could even drop to two employees per 65-year-olds.

Without comprehensive reforms of the pension system, a financial burden on future generations will be passed on, which could endanger investments in education and innovation. Aichhorn therefore demands clear perspectives for the young generation so as not to endanger their future. Successful examples of other countries could serve as a model, in particular measures to increase the age of retirement and incentives for longer work. There is currently no prospect of relaxing the situation - the challenges remain enormous.

Overall, these factors show how urgently measures are needed for the sustainable design of the pension system. The welfare and education systems must be supported in order to meet future requirements. Further information on the reform options in the Austrian pension system can also be found on ecoaUstria

For a detailed assessment of the demographic challenges that are imminent, Agenda Austria

Further insights into the current demands and developments in the pension system offers OTS .