Vienna (OTS) – As part of a study today, study author Peter Hajek (UNIQUE research) presented the results of the 2024 youth study. Under the title “What do young people want”, the 4 associations of Initiative 2050, as representatives of the second and third pillars of the Austrian pension system, shared their perceptions and expectations of young people between the ages of 18 and 30 about their future pensions.
Minister Gewessler underlines the importance of pension provision and climate protection
“Financial provision and climate protection have more to do with each other than many people think. Because the best retirement provision is the one that enables us to live a good life. Sustainable investments must be consistent with climate goals. This is ensured by a close connection with the EU taxonomy. With the Austrian Green Bond and green financial education measures, we are in the middle of implementing the Austrian Green Finance Agenda. And with the Green Finance Alliance, our department has launched an internationally unique pioneering initiative. The task now is to take double precautions. By taking the climate goals seriously, we are also making financial and economic provisions,” explains Federal Minister Leonore Gewessler at the event.
Youth State Secretary appeals for precautionary measures
“As a society, we need to form an alliance of reason when it comes to pensions. Because it won’t work without the knowledge and strength of the old, but neither will it work without the confidence and willingness to work of the young. In this sense: We need to talk about a healthy foundation for the generational contract. About how people stay healthy and happy in their jobs for longer and how we create awareness and real opportunities for a decent pension among young people. We will have to create this possibility with new pension models. For example, I think a state pension fund is a smart solution to relieve the burden on the state pillar. “But the implementation of the general pension fund contract and the reintroduction of the retention period would also be important building blocks for a healthy pension system,” said State Secretary Claudia Plakolm.
The need for additional pensions is not a criticism of the state pension system
Mag. Andreas Zakostelsky, chairman of the Association of Pension and Provident Funds, on the results of the youth study: “It is alarming that 75 percent of young adults are worried about their pension. However, we do not see this as criticism of the first pillar – the state pension system. Rather, the figures show that there is an urgent need to expand company and private provision to provide a substantial supplement. However, it is encouraging that young people are willing to invest in their retirement savings. On average, those surveyed reported an amount of just over 100 euros per month. This highlights the need to expand effective and accessible preventive care options.”
Zakostelsky continued: “One of our central demands is therefore to expand the scope of the statutory remit of the Old Age Security Commission to include all three pillars of the pension system. This would allow us to ensure a holistic and future-proof design of pension provision in Austria.”
Provision funds already offer comprehensive coverage
For board director Andreas Csurda, chairman of the pension funds professional group, “the results of the survey clearly show that young people are concerned about the future. Especially for those with little free funds for private provision, company pension funds already offer an important first building block for financial security in old age. As a comprehensive system of funded provision, the pension funds offer the perfect complement to the pension system and thus a secure perspective after active employment.”
Financial education is essential for successful provision
Board Director Dr. Peter Eichler from the Association of Austrian Insurance Companies (VVO) sees the available figures as a clear signal of the potential of education and support programs: “The present results show how important dealing with retirement provision is for the financial education of young people in our country. This is all the more important because the issue of pensions is obviously a major concern for young people – second only to inflation and ahead of climate change. Despite concerns about pensions and the fundamentally positive attitude towards private pension provision, the majority have not yet taken out any supplementary pension provision – a clear indication of the need for awareness-raising and incentives.”
Private providers see this as confirmation of the expansion of pension provision
For Mag. Heinz Bednar, President of the Association of Austrian Investment Companies (VÖIG), the present results of the youth study also show: “clear evidence of the urgency of further expanding personal provision as a supplement to the state and company pension systems.”
Important insights for future government
The 2050 Initiative sees the results of the 2024 youth study as a clear call on politics and society to improve the framework conditions for young people’s retirement provision. Only through joint efforts and the expansion of the second and third pillars can young people in Austria enjoy a secure and worry-free future.
In general, the speakers of the four associations of Initiative 2050 agree: “The present results of the 2024 youth study should not be understood as criticism of the first pillar of the pension system. Rather, it is important to further expand supplementary private and company pension provision.”
About the 2050 Initiative
The “INITIATIVE 2050” (formerly the Supplementary Pensions Association) includes all providers of company and private pension provision in Austria. These are the Association of Pension and Provident Funds, the Association of Austrian Insurance Companies (VVO) and the Association of Austrian Investment Companies (VÖIG).
The members of Initiative 2050 collectively represent an assessed volume of more than 200 billion euros. The aim of the initiative is to highlight necessary innovations and concrete options as well as to improve the legal framework in order to secure the domestic pension system holistically and sustainably at a high level. The focus is always on a substantial supplement to the state pension, but under no circumstances a competition or even a replacement of the state system.
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UNIQUE relations
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