Expenditures for Pensions are Increasing According to Report

According to the report, nearly seven billion more will have to be spent on pensions in the next five years - five billion for the statutory pension insurance, about 1.8 billion for civil servant pensions, reports the Ministry of Social Affairs. These figures correspond to 0.2 percent of GDP.

More New Pensioners

The main reasons for the increase in the coming years, according to the experts, are the effects of high inflation, weak economic forecasts, and a rising number of new pensioners in the coming years.

In their new long-term report, the commission sees a reasonably stable further development. Although federal funds in the statutory pension insurance will rise from 2.7 in 2023 (without compensatory allowance) to 6.2 percent of GDP by 2070. At the same time, however, expenditures for civil servant pensions will decrease from 3 to 0.6 percent. Overall, this corresponds to an increase in federal funds for pensions by 1.1 percent of GDP by the end of the forecast period.

Rauch Sees Proof

For Social Minister Johannes Rauch (Greens), this proves that pensions in Austria are also secured in the long term.

(APA/Red)

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