And Austria? it’s in the middle
Austria is not only geographically in the middle of Europe, but also in terms of social benefits: together with Germany and France, Austria is one of the countries with a generous pension system, but combines it with support for families and the unemployed, informs the economist. The redistribution to the lowest income quarter of the population is seven percent of disposable income in this country. This would put him “in the upper midfield” in Europe.
According to the study, there is “adjustment potential”, especially in terms of redistribution to the highest income quarter of the population, says the specialist. “Our analysis shows that countries with a limited base state pension and additional funded provision, such as Denmark and the Netherlands, can limit state redistribution to the retired population while spending more on low-income people and therefore have low rates of poverty in all segments of the population.” , he explained to the APA.
Basic provision for all
“Also in Austria, the funded pillar should be expanded to guarantee the income of those who earn a lot and offer only basic provisions for everyone through the PAYG system”, says the population economist. This would greatly relieve the social system and future generations and is “a necessity in view of the aging population”.
“Fairness aspects would also require cuts to existing luxury and very high pensions,” says Binder-Hammer: “Funding them through a pay-as-you-go system contradicts generational fairness and equity and is a key factor in funding problems. ” If the generation that pledged pensions had to shoulder those expenses, “the inflated claims would not have happened at all”, says the population economist.