2024-08-22 16:55:32
Austrian pension funds are unable to pay the originally promised pensions because twenty years of income is not enough. This affects nearly 150,000 pension fund beneficiaries. Repeated cuts to pensions often result in more than half of the original pension disappearing forever. In addition to those entitled to benefits, more than 900,000 recipients are also affected and will receive significantly reduced benefits when they retire.
What do those with a sense of political responsibility think?
The approaches to solving this problem are very different. The Chamber of Commerce and NEOS believe that action is simply not necessary and favor the expansion of Pillar 2. As a result, known problems will continue to be passed on to those with the power to solve them for decades to come.
Those who qualified were supported in various ways by the Council for Older Persons, the Pensioners Association, the Labor Chamber, the Trade Unions and, as expected, also by the political parties. Possible measures range from minimum return guarantees imaginable by the AK, FPÖ, SPÖ and Green parties to additional financial obligations. ÖVP and FPÖ sent positive signals regarding the consideration of tax buffers in the event of losses. AK also imagines tax-free payment of employee contributions and freedom to choose risk strategies. An overview of all measures can be found in the Appendix and front page.
PEKABE REQUIREMENTS
The most effective solution for those affected is the next federal government
- Risk sharing between beneficiaries and retirement funds
- Free choice of investment model and full cost transparency
- Tax measures to compensate for losses
- paid capital At least that is the case for those who are entitled to benefits but have already suffered cuts to their pensions if there is no other solution. In any case, this way you can offset further foreseeable losses. This variant is possible for everyone – pension funds, employers and the state – without any financial outlay.
PEKABE Chairman Peter Weller:
“Retirement funds cannot close the pension gap. Stabilization almost never happens; instead, cuts continue; the system ultimately fails. Political responsibility means admitting mistakes while looking for suitable solutions. The nearly 1.1 million people who qualify must not Being snubbed by politicians.
About Pekka Bay
pekabe Independent and non-partisan representation of the interests of more than one million beneficiaries of Austrian pension funds.
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