Reform of the pension system: Generational justice now required!

Reform of the pension system: Generational justice now required!

Österreich - The Industrial Association (IV) calls for urgent structural reforms in the Austrian pension system on June 5, 2025 to ensure generation fairness. According to the IV, it is essential that measures to increase the age of retirement and incentives for longer work are introduced. The need for such reforms is underpinned by a WiFo study, on behalf of the generation equality. This shows that the pension system is under pressure due to demographic developments and the rising public subsidies.

international perspectives and recommendations

The organizations such as the OECD also recommend restricting premature retirement and integrating sustainable mechanisms into pension systems in order to achieve the core objectives of a pension system. These include combating poverty among older people and the smoothing of consumption between working and pension times. In a contribution -financed pension system, as can also be found in Austria, people acquire rights to their contributions, which is why reforms are complex.

The evaluation of the pension systems shows that high coverage within the systems enables a redistribution, while low covers require additional programs to support non -covered people. Fiscal sustainability is crucial for the future, and the pension system must consider obligations for the next 50 to 75 years.

comparison with other countries

In international comparison, the data indicate that Germany's standard age limit is currently 67 years, which is gradually reached by 2030. Early retirement is possible from the age of 63, which represents another aspect of flexibility in the German pension system. The pension expenses in Germany are just below the EU average with 11.6 % of GDP, which is considered moderate in view of the demographic development. A high proportion of the older population can be compensated for by a high level of employment, especially for the 60 to 64 year olds.

In addition, the adaptation of pensions in Germany to wage development is also emphasized, which allows pensioners to participate in the wealth gains of society. The pension guarantee in Germany ensures that pensions are not shortened during adaptation, a point that could also be important for Austria as part of the discussion about reforms.

The challenges that the Austrian pension system must master are clearly outlined. Without profound structural reforms, it will be difficult to establish a sustainable system that meets the needs of all generations.

For more information on the topic, you can find the complete reports on [ots] (https://www.ots.at/presseaus-sung/ots_20250605_OT168/IV-Oesterreich- Usen-ein-pension-mit-mit-mit-mit-mit-mit-mit-mit-mit-mit-mit-mith Slideserve and BMAS.