, head of the (WIFO), is advocating for an expansion of capital-funded elements within Austria's pension system. Currently, the nation relies on a pay-as-you-go model funded by insurance contributions.
WIFO study author Thomas Url suggests that gradually supplementing the current system with mandatory capital funding could increase welfare. Felbermayr points to the Swedish model, which combines statutory pensions with market investments, as a role model.
The shift aims to reduce dependence on domestic economic strength and birth rates. While VVO's Christian Eltner notes state pensions rely on local growth, Felbermayr argues for market investment despite the risk-averse nature of typical Austrian households.