mast image

Special Report

Impact investing

Sections

Baby boomer wave will 'capsize' Austrian pension system

Related images

  • Baby boomer wave will 'capsize' Austrian pension system

Related Categories

AUSTRIA - The peak of the baby boomers retirement wave will upend the Austrian state pension system by 2025, Allianz has warned.

Nearly a quarter (23%) of Austria's population of 8m is currently 60 years old or older, and by 2030, this figure is set to increase to 30%

Allianz said this number would surge due to a wave of around 665,000 people set to start their retirement in 2025 - 43% more retirees than in 2010.

Further, by 2025, life expectancy is set to increase to 82.3 years. By comparison, in 1950, it was 66.3 years, and in 2009, 77.4 years.

<

Wolfram Littich, chairman of Allianz Group in Austria, said the country needed to "catch up" on supplementary retirement provision, as the first pillar still accounts for approximately 90% of pension benefits.

"The state pay-as-you-go system will continue to come under pressure, especially when hundreds of thousands of Austrians are retiring simultaneously," he said.

"Austria has a lot of catching up to do - currently, the relation between state and supplementary retirement provision is 90 to 10."

Pensioner lobbying groups have renewed their calls to scrap forced early retirement and privileged pension arrangements for certain professions.

They also want to see the introduction of a bonus system to reward people working beyond the statutory retirement age.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<