06.11.2019

Calculation in Pension Insurance: Long-term Implications

"Wirtschaft und Gesellschaft": Article by Christine Mayrhuber and Christoph Badelt

In contrast to the public pension discussion on "financeability" and "sustainability", WIFO economist Christine Mayrhuber and Director Christoph Badelt's "Wirtschaft und Gesellschaft" article focuses on possible consequences of extending the assessment period for the formation of the pension assessment basis from 15 to 40 years.

It can be seen that the strengthening of the equivalence principle with increasing de-standardisation of employment and income trends will in future be associated with an increase in the importance of compensation mechanisms such as partial insurance periods and minimum security elements. A development that is not in line with the cost containment goal of lifelong calculation.

Please find the complete article here.