2023-11-24 12:38:36
Adapt retirement age to reality and ensure financial sustainability
Vienna (OTS) – “The medium-term report from the Old Age Security Commission shows once once more how important effective measures are to put the pension system on a solid footing and to bring the actual retirement age closer to the statutory one,” says Bettina Pauschenwein, Federal Chairwoman of the Young Economy (JW) in the Austrian Economic Chamber (WKÖ The report thus underlines the demands of the Young Economy (JW), which has often shown ways in which sustainable intergenerational justice can work.
The current challenges posed by the labor shortage and the wave of baby boomer retirements require innovative solutions. To counteract this, sensible performance incentives are needed that motivate people to stay in working life longer. “A key measure for a sustainable pension system is raising the actual retirement age and creating further incentives for longer working hours. The introduction of a sustainability automation system is a long-term solution to put the pension system on a solid basis,” said Pauschenwein.
The JW warns above all regarding the financial consequences. The recently published medium-term report on the financial development of statutory pensions shows a significant increase in federal funding in the next 5 years up to 2028. The financial resources are expected to increase by 55.5% from the current 14 to 21.8 billion euros, with the share of GDP of 2.92% will rise to 3.69%. What is particularly noteworthy is that 18 billion euros of this amount is earmarked for the federal government’s default liability in order to close the financing gap between pension expenses and pension income. These figures underline the challenges and the need for long-term strategies to ensure the financial viability of statutory pensions. “Experts have been warning for years that the pensions won’t work out for the country’s citizens. Now the government must quickly implement solutions for a future-proof business and living location in Austria,” adds Lukas Sprenger, Federal Managing Director of the JW. (PWK418/NIS)
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