Advertisement

Retirement Determinants in Austria: An Aging Society but a Hesitant Policymaker!?

  • Lisa Schmidthuber
  • Heike Schröder
  • Edmund Panzenböck
Chapter

Abstract

The Austrian welfare system faces substantial challenges from the low labor market participation of those aged 55 plus and from persistent early labor market exit. This is partly due to the low female pension age, but also due to the availability of institutionalized financially attractive early retirement pathways. Reforms in the 2000s aimed at closing off early retirement pathways, boosting labor market participation and delaying retirement transitions. However, even though participation rates have improved since, the effect of these reforms has been moderate, because reforms have mainly created financial disincentives to retire early in a still generous state pension system. Negative perceptions about old age at the firm level and early retirement preferences of individuals additionally contribute to early retirement trends. In summary, already implemented and forthcoming measures might affect the effective retirement age in upcoming years. However, individuals and employers also have to change their attitudes toward late retirement to significantly increase old age employment rates.

Keywords

Labor Market Disability Pension Early Retirement Pension Benefit Labor Market Participation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Biffl, G., & Isaac, J. (2007). The challenge of ensuring a healthy workforce in an ageing society. Austria and Australia in comparison. WISO Austrian Economic Quarterly, 3, 144–157.Google Scholar
  2. Bosch, G., & Schief, S. (2005). Die Beschäftigung Älterer in Europa zwischen Vorruhestand und ‘Work-Line’. Arbeit, 4(14), 275–290.Google Scholar
  3. Buchebner-Ferstl, S., Dörfler, S., Haas, M., & Niksova, D. (2011). Teilzeit. Eine Studie zu betrieblichen Effekten von Teilzeitbeschäftigung. In W. Mazal (Ed.), Research report (Vol. 6). Vienna: Austrian Institute of Family Studies.Google Scholar
  4. Budimir, K. (2010). Das Pensionsantritts- und Erwerbsaustrittsgeschehen im Gefolge der Pensionsreformen 2000 und 2003. WISO Austrian Economic Quarterly, 9, 735–751.Google Scholar
  5. Conen, W. S., Henkens, K., & Schippers, J. (2012). Employers’ attitudes and actions toward the extension of working lives in Europe. International Journal of Manpower, 33(6), 648–665.CrossRefGoogle Scholar
  6. D’Addio, A. C., Keese, M., & Whitehouse, E. (2010). Population aging and labour markets. Oxford Review of Economic Policy, 26(4), 613–635.CrossRefGoogle Scholar
  7. Dorn, D., & Sousa-Poza, A. (2010). ‘Voluntary’ and ‘involuntary’ early retirement: An international analysis. Applied Economics, 42(4), 427–438.CrossRefGoogle Scholar
  8. Eibel, K., Iwanowa, A., Jiménez, P., Kallus, W., Korunka, C., & Kubicek, B. (2009). Die Qualität des Arbeitslebens von älteren ArbeitnehmerInnen. Graz/Innsbruck/Vienna: Federal Chamber of Labour.Google Scholar
  9. Engelhardt, H. (2012). Late careers in Europe: Effects of individual and institutional factors. European Sociological Review, 28(4), 550–563.CrossRefGoogle Scholar
  10. European Commission.1 (2012). The 2012 aging report: Economic and budgetary projections for the EU27 member states (2010–2060). Joint report prepared by the European Commission (DG ECFIN) and the Economic Policy Committee (AWG) European Economy, 2, Brussels.Google Scholar
  11. Fasching, M., Forster, J., & Moser, C. (2014). Arbeitsmarktstatistiken. Ergebnisse der Mikrozensus-Arbeitskräfteerhebung und der Offenen-Stellen-Erhebung, Statistics Austria (Eds.), Vienna.Google Scholar
  12. Federal Ministry of Finance. (2013). Österreichisches Stabilitätsprogramm. Fortschreibung für die Jahre 2012 bis 2017. Vienna.Google Scholar
  13. Felderer, B., Koman, R., & Schuh, U. (2006). Investigating the introduction of NDCs in Austria. In R. Holzmann & E. Palmer (Eds.), Pension reform. Issues and prospects for Non-Financial Defined Conbribution (NDC) schemes. Washington, DC: The World Bank.Google Scholar
  14. Fink, M. (2011). Annual national report 2011. Pensions, health and long-term care. Report to European Commission via ASISP network. Austria.Google Scholar
  15. Fischer, J. A. V., & Sousa-Poza, A. (2006). The institutional determinants of early retirement in Europe. Discussion paper 8. University St. Gallen.Google Scholar
  16. Gabmayer, R., & Strantz, M. (2012). Das Personal des Bundes 2012. Daten und Fakten, Federal Ministry of Education and Women’s Affairs (Ed.), Vienna.Google Scholar
  17. Garrouste, C., & Paccagnella, O. (2012). Shall I stay or shall I go? Late graduation and retirement decision (JRC scientific and technical reports). Luxembourg: Publications Office of the European Union. http://develop.fafo.no/files/news/9108/P_forum.pdf (home page). Accessed 11 Nov 2013.
  18. Gómez-Salvador, R., Messina, J., & Vallanti, G. (2004). Gross job flows and institution in Europe. Labour Economics, 11(4), 469–485.CrossRefGoogle Scholar
  19. Götz, R. (2005). Active aging—Recherchestudie zu good practice im Auftrag des AMS Österreich. Vienna: ÖSB Consulting.Google Scholar
  20. Graf, N., Hofer, H., & Winter-Ebmer, R. (2009). Labour supply effects of a subsidised old-age part-time scheme in Austria (IZA discussion paper, 4239).Google Scholar
  21. Gruber, J., & Wise, D. A. (Eds.). (2004). Social security programs and retirement around the world: Micro estimation. Chicago: University of Chicago Press.Google Scholar
  22. Guger, A. (1998). Austrian’s old-age pension system in an international comparison. WIFO Austrian Economic Quarterly, 1, 31–42.Google Scholar
  23. Haberkern, K., & Szydlik, M. (2008). Pflege der Eltern—Ein europäischer Vergleich. Kölner Zeitschrift für Soziologie und Sozialpsychologie, 60(1), 78–101.CrossRefGoogle Scholar
  24. Hamblin, K. A. (2013). Active aging in the European Union. Policy convergence and divergence. Basingsoke: Palgrave Macmillan.CrossRefGoogle Scholar
  25. Hanika, A., Jaschinski, I., Klotz, J., Marik-Lebeck, S., & Wisbauer, A. (2012). Zukünftige Bevölkerungsentwicklung Österreichs und der Bundesländer 2012 bis 2060 (2075). Statistische Nachrichten, 10, 785–809.Google Scholar
  26. Hauptverband der österreichischen Sozialversicherungsträger. (2014). Handbuch der österreichischen Sozialversicherung 2014. Vienna.Google Scholar
  27. Hinrichs, K., & Aleksandrowicz, P. (2006). Reforming European pension systems for active aging. International Social Science Journal, 58(190), 585–599.CrossRefGoogle Scholar
  28. Hochguertel, S. (2010). Self-employment around retirement age. Tinberger Institute Discussion Paper, 67(3). http://politiquessociales.net/IMG/pdf/o3_10067.pdf (home page). Accessed 11 Nov 2013.
  29. Hochman, O., & Lewin-Epstein, N. (2013). Determinants of early retirement preferences in Europe: The role of grandparenthood. International Journal of Comparative Sociology, 54(1), 29–47.CrossRefGoogle Scholar
  30. Jansen, A. (2013). Kulturelle Muster des Altersübergangs: Der Einfluss kultureller Normen und Werte auf die Erwerbsbeteiligung älterer Menschen in Europa. Kölner Zeitschrift für Soziologie und Sozialpsychologie, 65, 223–251.CrossRefGoogle Scholar
  31. Kalwij, A., & Vermeulen, F. (2007). Health and labour force participation of older people in Europe: What do objective health indicators add to the analysis? Health Economics, 17, 619–638.CrossRefGoogle Scholar
  32. Lefebvre, M. (2013). Social security and early retirement: The relationship between workers, firms and governments. Annals of Public and Cooperative Economics, 84(1), 43–61.CrossRefGoogle Scholar
  33. Mahlberg, B., Freund, I., Crespo Cuaresma, J., & Prskawetz, A. (2013). Aging, productivity and wages in Austria. Labour Economics, 22, 5–15.CrossRefGoogle Scholar
  34. Marin, B. (2013). Welfare in an idle society? Reinventing retirement, work, wealth, health, and welfare. Wey Court East: Ashgate.Google Scholar
  35. Mayrhuber, C. (2006). Pensionshöhe und Einkommensersatzraten nach Einführung des Allgemeinen Pensionsgesetzes. WIFO, 11. Vienna.Google Scholar
  36. Obinger, H., & Tálos, E. (2006). Sozialstaat Österreich zwischen Kontinuität und Umbau. Eine Bilanz der ÖVP/FPÖ/BZÖ-Koalition. Wiesbaden: VS Verlag für Sozialwissenschaften.Google Scholar
  37. Obinger, H., & Tálo, E. (2010). Janus-faced developments in a prototypical Bismarckian welfare state: Welfare reforms in Austria since the 1970s. In B. Palier (Ed.), A long goodbye to Bismarck. The politics of welfare reform in continental Europe (pp. 101–128). Amsterdam: Amsterdam University Press.Google Scholar
  38. OECD. (1998). OECD economic surveys, Austria. 1997–1998. Paris: OECD.CrossRefGoogle Scholar
  39. OECD. (2005). Aging and employment policies—Austria. Paris: OECD.Google Scholar
  40. OECD. (2006). Aging and employment policies: Live longer, work longer. Paris: OECD.CrossRefGoogle Scholar
  41. OECD. (2011). Austria. In Pensions at a glance 2011: Retirement-income systems in OECD and G20 countries. OECD Publishing. http://dx.doi.org/10.1787/pension_glance-2011-en (home page). Accessed 10 Oct 2013.
  42. OECD. (2012). OECD thematic follow-up review of policies to improve labour market prospects for older workers. Austria. http://www.oecd.org/els/emp/Older%20Workers%20Austria-MOD.pdf (home page). Accessed 4 Nov 2013.
  43. OECD. (2013a). Austria. In Pensions at a glance 2013: OECD and G20 countries. OECD Publishing. http://www.oecd.org/els/public-pensions/PAG2013-profile-Austria.pdf (home page). Accessed 28 Nov 2013.
  44. OECD. (2013b). OECD economic surveys: Austria 2013. OECD Publishing. http://dx.doi.org/10.1787/eco_surveys-aut-2013-en (home page). Accessed 13 Nov 2013.
  45. OECD Statistics. (2013). http://stats.oecd.org/ (home page). Accessed 10 Oct 2013.
  46. Public Employment Service. (2013a). Altersteilzeitgeld. http://www.ams.at/_docs/001_infoblatt_atz.pdf (home page). Accessed 29 Oct 2013.
  47. Public Employment Service. (2013b). Frühwarnsystem § 45a (AMFG). http://www.ams.at/sfu/14079.html (home page). Accessed 17 Oct 2013.
  48. Raab, R. (2011). Financial incentives in the Austrian PAYG-pension system: Micro-estimation. Empirica, 38, 231–257.CrossRefGoogle Scholar
  49. Reiter, G., & Woltran, I. (2010). Alterssicherung und Armutsgefährdung in Österreich, WISO, 3 (pp. 100–112). Linz: Institute for Social and Economic Science.Google Scholar
  50. Schmid, K., & Kailer, N. (2008). Weiterbildung älterer ArbeitnehmerInnen. Vienna: Arbeitsmarktservice Österreich and Institut für Bildungsforschung der Wirtschaft.Google Scholar
  51. Schnalzenberger, M., & Winter-Ebmer, R. (2008). Layoff tax and the employment of the elderly, NRN working papers. Linz: The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.Google Scholar
  52. Schneeberger, A., Dornmayr, H., Petanovitsch, A., & Nowak, S. (2012). Fachkräftebedarf der Wirtschaft in Oberösterreich (ibw-Forschungsbericht, 168, 1–164). Vienna: Institut für Bildungsforschung der Wirtschaft.Google Scholar
  53. Schneider, U., Trukeschitz, B., Mühlmann, R., & Ponocny, I. (2013). ‘Do I stay or do I go’—Job change and labor market exit intentions of employees providing informal care to older adults. Health Economics, 22, 1230–1249.CrossRefGoogle Scholar
  54. Schober, T., & Winter-Ebmer, R. (2011). Ältere Arbeitnehmer, gesundheitliche Einschränkungen und Übergänge in den Ruhestand. Linz: Johannes Kepler University.Google Scholar
  55. Schweighofer, J. (2013). Erzielen die Programme der aktiven Arbeitsmarktpolitik in Österreich ihre beabsichtigten Wirkungen? Lehren aus zehn State-of-the-Art-Evaluierungen, Materials for Economy and Society, 120. Vienna: Chamber of Labour.Google Scholar
  56. Siegrist, J., & Wahrendorf, M. (2011). Quality of work, health and early retirement: European comparison, Mannheim Research Institute for the Economics of Aging (Vol. 224). Mannheim: Universitätsbibliothek der Universität Mannheim.Google Scholar
  57. Siegrist, J., & Wahrendorf, M. (2011). Quality of work, health and early retirement: European comparisons. In A. Börsch-Supan, M. Brandt, K. Hank, & M. Schröder (Eds.), The individual and the welfare state. Life histories in Europe (pp. 169–177). Berlin/Heidelberg/New York: Springer.CrossRefGoogle Scholar
  58. Siegrist, J., Wahrendorf, M., Von Dem Knesebeck, O., Jürges, H., & Börsch-Supan, A. (2007). Quality of work, well-being, and intended early retirement of older employees—Baseline results from the SHARE Study. The European Journal of Public Health, 17(1), 62–68.CrossRefGoogle Scholar
  59. Social Insurance Authority (Hauptverband der österreichischen Sozialversicherungsträger). (2013). Handbuch der österreichischen Sozialversicherung 2013. Vienna.Google Scholar
  60. Staubli, S., & Zweimüller, J. (2012). Does raising the retirement age increase employment of older workers? (Working paper, 1206). The Austrian Center for Labor Economics and the Analysis of the Welfare State. Supported by the Austrian Science Funds.Google Scholar
  61. Stefanits, H., & Hollarek, F. (2008). Die Pensionsreformen der Jahre 2000, 2003 und 2004—Auswirkungen auf die individuelle Pensionshöhen. Soziale Sicherheit, 4, 178–192.Google Scholar
  62. Stefanits, H., & Mayer-Schulz, M. (2008). Fakten und Trends bei den Invaliditätspensionen. BMSK: Soziales und Konsumentenschutz. http://www.bmask.gv.at/cms/site/attachments/6/6/3/CH2311/CMS1218442571151/fakten_und_trends_bei_den_ip.pdf (home page). Accessed 11 Nov 2013.
  63. Stiglbauer, A. (2013). Effective retirement age in Austria: A review of change since 2000. Monetary Policy and the Economy, 1(13), 29–49.Google Scholar
  64. Taylor, P. (2006) Employment initiatives for an aging workforce in the EU15, European foundation for the improvement of living and working conditions. Luxembourg: Office for Official Publications of the European Communities.Google Scholar
  65. Unger, B. (2001). Österreichs Beschäftigungs- und Sozialpolitik von 1970 bis 2000. Journal of Social Policy Research, 4(47), 340–361.Google Scholar
  66. Wiedenholzer-Galik, B., Baumgartner, K., & Baldaszti, E. (2013). Übergang vom Erwerbsleben in den Ruhestand. Modul der Arbeitskräfteerhebung 2012, Statistik Austria (Ed.), Vienna.Google Scholar
  67. Wipplinger, R., & Winter-Ebmer, R. (2009). Pensionszugang in Österreich im internationalen Vergleich. In A. Börsch-Supan, K. Hank, H. Jürgens, & M. Schröder (Eds.), 50plus in Deutschland und Europa. Ergebnisse des Survey of Health, Aging and Retirement in Europe. Wiesbaden: VS Verlag für Sozialwissenschaften.Google Scholar
  68. Zweimüller, J., Winter-Ebmer, R., & Falkinger, J. (1996). Retirement of spouses and social security reform. European Economic Review, 40, 449–472.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2016

Authors and Affiliations

  • Lisa Schmidthuber
    • 1
  • Heike Schröder
    • 2
  • Edmund Panzenböck
    • 3
  1. 1.Institute for Public and Nonprofit ManagementJohannes Kepler University LinzLinzAustria
  2. 2.Queen’s Management SchoolQueen’s University BelfastNorthern IrelandUK
  3. 3.Scientific FreelancerViennaAustria

Personalised recommendations