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The liberal think tank Agenda Austria wants to renegotiate our pension system and proposes to make changes to all three pillars. Otherwise, the old-age insurance would reach the limit of what can be financed.
The difference to be compensated by the tax authorities in the pension system this year is 24,000 million euros. For ASVG pensions, as well as pensions for the self-employed, merchants and farmers, there are 33 billion euros in pension contributions compared to expenses of 46.2 billion euros. In the case of civil servants, the difference is even greater in comparison. Revenues amount to € 2,200 million and expenses to € 13,000 million. The total difference of 24 billion euros this year threatens to grow further, say the economic experts at Agenda Austria.
In the state pension system, the statutory retirement age should be gradually increased to 67 years and then continuously adjusted to the life expectancy of Austrians. Compared to cuts in pensions or increases in contributions, this is the best alternative.
Agenda Austria also has proposals for private and company pension plans which, unlike the first pillar, are not covered by a pay-as-you-go system, but by a capital system. Heike Lehner, for example, proposes that the share capital of the severance payments, which by far does not meet expectations, be placed in national pension funds. Since a change in the law in 2019, they have a better chance of generating returns. Pension funds could also generate better income opportunities if the capital guarantee is optionally waived. By way of comparison: in Danish pension funds, from 2007 to 2018, 1,000 euros became 2,219.13 euros, in Austria 1,321.26 euros and compensations 1,229.8 euros.
Switzerland or European pension
Agenda expert Nikolaus Jilch hopes for alternatives like those offered by Switzerland after the failure of the subsidized pension plan. There, clients can choose an investment such as a pension plan, which is paid tax-free after reaching retirement age. But the new “European pension”, which will arrive in 2021, could not only strengthen the European capital market, but also be of interest to clients. Accordingly, financial institutions can offer a savings model based on the US model of individual pension account, which can be carried with you in the EU and which is limited in terms of fees, for example.
Article of
Dietmar mascher
Deputy Editor-in-Chief, Chief Business Editor
