"Driving at hellish speed"

Why the retirement age is rising far too quickly

Are we retiring too early - or too late?(Bild: Wolfgang Spitzbart)

Austria's politicians are too short-sighted when it comes to pensions. As a result, changes often have to be made in a hurry. "We are moving at a hell of a pace when it comes to raising the retirement age for women and the corridor pension," says Christine Mayrhuber, economist at Wifo and head of the Pension Commission, in an interview with the "Krone" newspaper.

The retirement age for women is rising by half a year every year. Never before has there been such a rapid pace. Mayrhuber warns that such major changes are not conducive to the confidence of insured persons in the system. Politicians need to act much more prudently and, above all, with more foresight. "We need to plan for the long term today, not for 2030, but for 2040." In Germany, the retirement age is being raised to 67, but in very moderate steps - by two months every year. "That's easily manageable."

Making companies much more accountable
In the current debate about mandatory quotas for the employment of older workers, the expert also believes that companies have a duty. "Companies need to rethink their approach and realize that a 50-year-old still has a third of her working life ahead of her." Health is a major issue here.

In the Netherlands, there is a monitoring system to determine how high sickness rates are in companies. The premiums for an employer's incapacity insurance are adjusted based on the incapacity claims of its employees. This system is intended to create incentives for employers to reduce incapacity claims, which can also have an indirect effect on the continued employment of older workers.

Christine Mayrhuber is an economist at Wifo and head of the Pension Commission(Bild: WIFO)

Austria lacks a tradition
Such monitoring is lacking in Austria. According to Mayrhuber, there is also a lack of tradition in keeping older workers on the labor market. The qualification structure, digitalization and new skills that need to be acquired in old age also play a role. Lifelong learning is needed to keep up at the age of 50.

Raising the retirement age for women has increased employment
For Mayrhuber, however, raising the statutory retirement age is also an issue, even if politicians are stifling any debate about it. The current rise in the retirement age for women shows that women are staying in work longer. It is not unemployment that has risen, but employment among women.