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Small pensions of up to 1,000 euros increase 3.5 percent. That is what The turquoise green government agreed for next year. the The pension increase should Continue staggered: From a pension of 2,333 euros there is a fixed amount of 35 euros. The increase in pensions will be decided in the Council of Ministers on Wednesday. The accolades come from the Austrian Seniors Association and the Retirees Association.
AUSTRIA. The adjustment announced by the government on Sunday averages 1.8 percent. Pensions for small and medium-sized enterprises are increasing especially sharply. Here the compensation is increased to 1,000 euros. Exactly the most legal 1.5 percent is available with a pension of 2,333 euros, with a fixed amount of 35 euros. This also applies to all higher salaries.
“Corona bonus for retirees”
In a press release, Federal Chancellor Sebastian Kurz (ÖVP) called it a “question of fairness that small and medium pensions in particular are increasing further.” The deadline is: after paying the crown bonus for families and employees, you now want to relieve the older generation. The pension increase is a “crown bonus for retirees” because the current pandemic is “particularly challenging” for the elderly. According to Finance Minister Gernot Blümel (ÖVP), this should bring relief for those who have not benefited from the reduction of the first tax bracket. The relief also creates significant economic stimuli. The total cost of the increase is estimated at around € 1 billion.
Korosec: “Social security for the older generation”
“Federal Chancellor Sebastian Kurz has always listened carefully to the concerns of older people. The constructive discussions and the subsequent success of the negotiations are living proof of this special appreciation for the older generation, ”said Ingrid Korosec, President of the Austrian Union of Older Persons, on the occasion of the 2021 pension increase.
“Especially in these economically difficult times for many people due to the corona pandemic, the increase in the compensation allowance to 1000 euros is an effective social protection and a real help for those who need it most urgently. The increase in the special pension for beneficiaries of small pensions is also a necessary support to cushion the increase in the cost of living ”, says Ingrid Korosec.
Increasing pensions strengthens purchasing power
He also points out that an increase in pensions is always an economic stimulus package. “We know that, especially with small pensions, almost all of the increases flow into consumption. Small service providers, such as hairdressers, also benefit from this. Given that almost half of the purchasing power is in the hands of the elderly, it is easy to calculate the economic leverage of an increase, ”concludes Korosec.
Praise of the retiree association
The President of the Pensioners Association, Dr. Peter Kostelka:
“The pension adjustment for 2021 is ready. The pensioners’ association has imposed itself with its demand to raise the limit of compensation (“minimum pension”) to 1,000 euros. That’s a 3.5 percent increase. Pensions of up to 1,000 euros will also be increased by 3.5 percent, which has also been demanded and achieved by the Pensioners Association. The Pensioners Association was the first senior citizen organization to ask for a stronger bonus for people with smaller pensions. This group is particularly affected by the notably higher cost of living. Furthermore, she did not receive any relief from the tax reform. Therefore, it was clear to us at the Pensioners Association that we had to negotiate particularly hard for these pensioners. “
“Avoid poverty in old age”
“It is important to avoid poverty of the elderly and ensure purchasing power. A loss of purchasing power for pensioners would be a disaster for the economy in these difficult times. Austria needs the secure purchasing power of pensioners, because that supports the local economy and helps the labor market! ”Kostelka said about the agreement that will be decided on Wednesday in the Council of Ministers.
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