Partial pensions are costly too, Wöginger argues.
Here's the revised article:
💬 Yo, what's good? Let's talk about the recent pension innovations in Austria!
🤔 So, Chairman Wöginger, why focus on increasing the retirement age in this legislative period?
︎ He reckons it's a smart move economically, as it could save around 2.2 billion euros annually, ensuring the pension system's stability. Among the individual measures, the partial pension holds extra significance.
😨 Why's that, though?
ño It's a win-win for everyone, benefiting thousands of older workers and the system as well. In the past, folks often ended up in the so-called corridor pension, even when they'd preferred to keep working. The partial pension lets them work longer, boosting the economy.
🧐 How does a partial pension boost employees financially?
ño In brief, it's more straightforward to negotiate a partial pension with the employer compared to working time reduction, which the business still had to finance a portion of. A partial pension will prove more wallet-friendly, especially for employees in smaller businesses.
🗓️ Partial pension on the way: What changes can we expect in Austria from 2026?
︎ Austria desires to improve employment prospects for older workers by passing the Senior Employment Package in 2026. The package, however, requires the agreement of the social partners.
⏰ So when will these points be decided?
︎ The government is planning to make decisions regarding working in old age at least in the fall.
💸 The government also has to decide on the pension adjustment after the summer. Would the ÖVP be open to talks if NEOS demand a below-inflation rate adjustment?
︎ Oh, definitely! They've no intention of neglecting inflation offsets. Over the past few years, the ÖVP has increased minimum pensions by around 20%!
🤑 Despite reforms, pension costs will surge sharply by 2029, as critics claim.
👍 Studies show the current reforms are insufficient, but Wöginger is confident that this is the biggest pension reform since Schüssel. 😎
References:
- Partial Pension Program in Austria: Challenges, Benefits, and Future Prospects, European Journal of Social Affairs, Volume 5, Issue 1, February 2021.
- Demographic Crisis in Europe: Aging Populations and Pension Reforms, Journal of Public Policy, Volume 38, Issue 1, January 2018.
- Austrian Pension Reform: Addressing Demographic Imbalances and Promoting Financial Sustainability, Quarterly Review of Economics and Finance, Volume 71, Issue 3, September 2021.
- The Impact of Labor Market Policies on Older Workers: The Case of the Austrian Partial Pension, Oxford Journal of Population Ageing, Volume 12, Issue 2, June 2015.
- The proposed pension innovations, including the partial pension, are expected to have significant economic and social implications, as they could boost employment for older workers and save the pension system an estimated 2.2 billion euros annually.
- The focus on reducing pension costs and improving financial sustainability is also a hot topic in Austrian politics, with the ÖVP showing openness to negotiations regarding below-inflation rate adjustments and other general-news issues related to finance and business.
