Savings only work in the long run | kurier.at

Even if one currently tends to put all the measures that put pressure on the budget into the background, precautionary measures should not be neglected. If you wait now, you are wasting valuable time. Another reason why you are now making special provisions for old age is that the state budget has been strained by the crises. It can be assumed that further pension reforms will be inevitable. Long-term budget forecasts show that spending on state pensions will rise sharply in the coming years. While this still amounted to 13.3 percent of GDP in 2018, this rate will rise to 15 percent by 2035 according to forecasts. The main reason for the increase in pension expenditures by 2035 is the growing number of beneficiaries – the keywords baby boomer generation. Add to this the rise in government spending during the pandemic and the energy crisis, which will leave its mark on budgets. So if you don’t make allowances, you won’t be able to maintain your standard of living into old age because of the pension gap, the difference between your last earned income and your pension, which is already 47 percent on average today. .