The pension system in Austria compared to the German one – advantages and disadvantages and tax differences.

The pension system in Austria compared to the German one – advantages and disadvantages and tax differences.

According to a report by www.gegen-hartz.de,

The pension system in Austria is viewed by many experts as financially more stable compared to Germany. This is based in particular on the uniform pension approach and the higher contribution rates for pension insurance, which lead to significantly higher pension payments. These observations are also confirmed by a study by the Economic and Social Sciences Institute (WSI) in the Hans Böckler Foundation, the Institute for Macroeconomics and Business Cycle Research (IMK), the Berlin University of Economics and Technology and the Vienna Chamber for Workers and Employees. Nevertheless, the German pension insurance company points out that there are also differences and disadvantages in the Austrian pension system, especially with regard to pension deductions, tax aspects and pension benefits.

An analysis of the facts from the article shows that the higher contribution rates for pension insurance in Austria lead to significantly higher pension payments. The values ​​shown in the table show that Austrian pensioners receive higher pensions than German pensioners in all categories. This suggests that the Austrian pension system is actually more financially stable and pensioners in Austria enjoy a better financial situation.

The higher pension payments in Austria are also due to the fact that the country adheres to a uniform pension approach, while in Germany a “three-pillar system” of old-age provision was introduced to compensate for the declining level of statutory pension provision. This suggests that the Austrian pension system offers a more sustainable solution to secure living standards in old age.

However, the differences in tax aspects and pension benefits show that there are also disadvantages in the Austrian pension system that need to be taken into account. Nevertheless, in summary it can be said that pensioners in Austria receive more pensions and the system is more stable because civil servants and self-employed people also contribute to pension insurance. These differences highlight the need to rethink and potentially make improvements to both countries' pension systems.