Austrians Have Knowledge Gaps About Pensions

Respondents underestimated the average pension amount: women receive over 1,500 euros gross, men over 2,500 euros. The estimate was 1,500 euros and 1,050 euros in the median, influenced by extreme outliers. Marketagent CEO Thomas Schwabl criticized the Austrians' lack of knowledge. Over 80 percent mistakenly believed there was a statutory minimum pension; in fact, there is a compensatory allowance for low pensions of just under 1,300 euros gross for sole earners. The assumed minimum pension was estimated at over 1,000 euros.

Men More Satisfied with Pension Amounts than Women

The satisfaction with one's own pension corresponds quite well to the actual pension amount: 64 percent of men are very satisfied or rather satisfied, but only 42 percent of women. Accordingly, three-quarters of respondents believe that men and women are differently affected by old-age poverty. Especially women fear that their pension will not be sufficient for a living in old age.

Pensions: Few Incentives for Working

This is also where the criticism of Vollpensions founder Moriz Piffl-Percevic comes in. The social business operates generation cafes and a bakery with retirees, offers catering, and also supports other companies that want to create jobs for older people. On one hand, there is no statistic that provides information on how many people are looking for work in retirement. On the other hand, there are no incentives for people to earn additional income in retirement - neither for the older generation itself nor for companies.

For example, people are no longer considered long-term unemployed from the start of their pension, which means that corresponding subsidies for hiring them are also eliminated, said Piffl-Percevic. Tax considerations also need to be made - in Vollpension, people are usually employed on a minor basis because higher earnings are often no longer financially attractive. However, longer involvement in working and thus social life would have a positive impact on health and save the state money in the long run, according to Piffl-Percevic. Additionally, earning one's own money brings a completely different form of self-affirmation than benefits or subsidies. Vollpension itself cannot even employ all the seniors who apply for a position, even in Vienna.

(APA/Red)

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