Final Report: Increase of minimum pension top-up (de)

PUBLICATION YEAR

2023

CITATION

Fuchs, M. & Wohlgemuth, F. (2023). Simulation einer Anhebung der Richtsätze der Ausgleichszulage. Vienna: European Centre.

DESCRIPTION

We analysed the effects of an increase of the minimum pension top-up in Austria with the tax/benefit-microsimulation model EUROMOD based on latest EU-SILC data. The minimum pension top-up plays a central role in the Austrian social security system. Its level is not only relevant for pensioners in the statutory pension insurance and in the civil servants' pension system, but also for example for recipients of social assistance or recipients of unemployment benefits. Calculated at the level of the indexed poverty line for 2023, it would primarily benefit pensioners and recipients of social assistance (in total around 1.1 million persons living in respective households). At costs of approx. € 2.3 billion, the risk of poverty would be reduced by about one third to around 10%.