From Generosity to Sustainability: The Austrian Pension System and Options for its Reform
January 1, 1997
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Summary
Austria has probably the world’s highest pension expenditures relative to its economic size, largely because of the generosity of its pension system. This paper examines the institutional setup of the Austrian pension system and projects its future development based on current policies. The projection results show a swift financial worsening. With the already high level of contribution rates, pension expenditures, and budget transfers, the results underscore the need for reform. Much of this reform can, however, be achieved by maintaining the structure of the system and adjusting some of its key parameters. The paper outlines options for such a reform.
Subject: Aging, Expenditure, Labor, Pension spending, Pensions, Population and demographics, Retirement, Wages
Keywords: Aging, budget transfer, contributor-pensioner ratio, Europe, insurance body, old-age pension level, old-age pensioner, pension age, pension calculation, pension duration, pension expenditure, Pension spending, pension system, pensioner dynamics, Pensions, Retirement, retirement age, revenue-expenditure gap, survivor pension, unemployment rate, Wages, would-be pensioner, WP
Pages:
30
Volume:
1997
DOI:
Issue:
010
Series:
Working Paper No. 1997/010
Stock No:
WPIEA0101997
ISBN:
9781451842654
ISSN:
1018-5941
