NEOS brake: Pensions should increase below inflation

NEOS social spokesperson Johannes Gasser argues for increasing pensions next year by less than the expected inflation rate of 2.7 percent. An increase of 2.2 percent instead of the full inflation compensation would save the state budget nearly 400 million euros, according to Gasser.

Pension adjustment should be socially staggered

"The budgetary situation remains tense," Gasser said on Thursday in the ORF program "Vorarlberg heute". In recent years, pensions have been regularly adjusted above inflation. A socially targeted and staggered approach is therefore appropriate.

Especially for low pensions, such as in the area of the compensatory allowance, full inflation compensation is necessary, Gasser emphasized. This compensatory allowance is "an instrument for combating poverty in old age". At the same time, he sees no need for an adjustment for very high pensions: "Luxury pensioners, who receive far more in pensions than what is possible in the normal legal system," do not need an additional increase.

Resistance from senior representatives

Representatives of the Senior Council are not enthusiastic about the savings plans. Birgit Gerstorfer (SPÖ Pensioners' Association) and Ingrid Korosec (ÖVP Senior Citizens' Association) demand an increase in line with inflation: "Out of respect for the older generation," an adjustment of 2.7 percent is expected.

Social Minister Korinna Schumann (SPÖ) wants to wait for the final inflation figures for the time being. Subsequently, discussions with senior representatives are to follow. The topic of pensions will also play a role in the government retreat at the beginning of September.

Opposition also sharply criticizes NEOS proposal

The opposition parties FPÖ and Greens criticize the NEOS proposal to increase pensions in 2026 by 2.2 percent instead of 2.7 percent. Freedom Party social spokesperson Dagmar Belakowitsch speaks of an "unprecedented attack on the retirement of our seniors". Green social spokesperson Markus Koza said a pension adjustment below the inflation rate is "unacceptable".

The statutory pension adjustment factor must be adhered to, especially in times of rising inflation and previous cuts for pensioners, Koza stated in a press release. A pension adjustment below the inflation rate would "only lead to further social hardships." Particularly recipients of low and lower middle pensions would be under significant pressure, for example, due to the increase in health insurance contributions or the abolition of the climate bonus. These income losses must be cushioned by inflation compensation.

SPÖ Burgenland Gives NEOS Proposal a "Clear Rejection"

The state managers of SPÖ Burgenland, Kevin Friedl and Friedrich Radlspäck, give the NEOS proposal a "clear rejection": "Pensioners are not a social benefit - they have paid into our system for decades, built this country, and enabled our current life with their work. They have the right to live with dignity in retirement." As previously stated by Governor Hans Peter Doskozil, Friedl and Radlspäck also oppose raising the statutory retirement age.

Criticism Also from ÖGB

ÖGB senior chief Monika Kemperle also criticizes the NEOS proposal to increase pensions below inflation: "This means nothing other than sending hundreds of thousands of pensioners directly into old-age poverty. Our clear demand is therefore: Full compensation for inflation for all pensioners - anything else is extremely dangerous." Pensioners have already felt the highest price increases of recent decades, such as rising food prices, rents, and energy costs, Kemperle said.

Federation of Austrian Industries for Lower Pension Adjustment

The NEOS proposal receives backing from the Federation of Austrian Industries (IV). The pension system in Austria is one of the most expensive in Europe, so a pension adjustment below inflation is appropriate, the IV stated in a press release. Furthermore, it advocates for structural reforms. This would "naturally include the discussion about the statutory retirement age and the restriction of early retirements."

NEOS Respond to Criticism from Opposition Parties

NEOS Secretary General Douglas Hoyos responds to the criticism from opposition parties with counter-criticism in a press statement: "If FPÖ and Greens had had the courage for reforms during their time in government and not spent money as if there were no tomorrow, there would be no budget crisis now and more leeway." Especially the Greens, with "their scattergun policy and indiscriminate salary increases," contributed to the "financial misery." Hoyos invites both parties to "participate with constructive proposals in the rehabilitation of the state budget."

(APA/Red)

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