From Generosity to Sustainability: The Austrian Pension System and Options for its Reform

Author/Editor:

Christian Thimann ; Manfred Koch

Publication Date:

January 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Austria has probably the world’s highest pension expenditures relative to its economic size, largely because of the generosity of its pension system. This paper examines the institutional setup of the Austrian pension system and projects its future development based on current policies. The projection results show a swift financial worsening. With the already high level of contribution rates, pension expenditures, and budget transfers, the results underscore the need for reform. Much of this reform can, however, be achieved by maintaining the structure of the system and adjusting some of its key parameters. The paper outlines options for such a reform.

Series:

Working Paper No. 1997/010

Subject:

Aging Expenditure Labor Pension spending Pensions Population and demographics Retirement Wages

English

Publication Date:

January 1, 1997

ISBN/ISSN:

9781451842654/1018-5941

Stock No:

WPIEA0101997

Pages:

30

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