WIFO head Gabriel Felbermayr, born in 1976, is calling for a comprehensive reform of Austria's pension and care systems. The proposal includes a gradual increase of the legal retirement age from 65 to 67, alongside a state pension fund proposed by the ÖVP.
Felbermayr notes that raising the retirement age would only affect younger generations, with relief effects expected in 20 to 30 years. He also criticized the 'Aktivpension' for deadweight effects while rejecting tax hikes due to high labor tax burdens.
The reform is critical as the number of people over 80 is projected to double, which Felbermayr warns will double care costs. Addressing these demographic shifts now is essential for long-term fiscal stability without increasing the existing tax burden.