"Costs are rising rapidly": nearly half of individuals are saving more money compared to over five years ago.
In a recent study, it has been revealed that the financial situation of women and the elderly in Austria has been affected more significantly over the past five years compared to the general population. This finding reflects broader economic and social trends that have impacted these groups differently.
### Women in Austria
The persistent gender pay gap continues to be a significant issue in Austria, with women earning significantly less than men, especially in lower-paid, feminized professions such as nursing. This disparity limits their financial independence and security. Despite improvements in overall employment and wage growth, the gender pay gap means women are more vulnerable to economic shocks and inflation impacts, as they typically have lower incomes and savings buffers.
The gender pay gap also translates into lower pension entitlements for women, affecting their financial well-being in old age.
### Elderly in Austria
The elderly population in Austria has faced increasing financial pressures due to rising inflation and cost of living increases. Inflation in Austria has remained elevated in recent years, impacting purchasing power. While social benefits and pensions have seen some real increases, the lagged effects of inflation on employee compensation and pensions have contributed to increased government spending.
The fiscal deficit has widened partly due to enhanced social welfare measures, including increased pension payments and climate bonuses for vulnerable groups, which include many elderly Austrians. Despite these supports, the overall economic slowdown and recession in recent years have constrained further improvements in elderly financial security.
### Compared to the general population
The general Austrian population has also faced challenges such as recession, rising energy prices, and inflation, but wage growth and accumulated savings have somewhat cushioned household finances overall. However, the elderly and women, due to structural inequalities and fixed incomes (pensions), have had less capacity to absorb these shocks compared to the broader population.
Austria's aging population trend further compounds these effects, with a shrinking workforce and increased demand for social benefits impacting sustainability.
### Coping Strategies
The study found that 22% of Austrians are forgoing expenses in the area of furniture and decoration, while 19% are tightening their belts in the areas of vacation and gifts. Additionally, 18% are cutting back on spending on clothing and shoes as well as electronic devices. 42% are buying fewer products, down from 52% two years ago.
60% of consumers are paying more attention to promotions and obtaining multiple offers, while 29% of Austrians are saving on eating out and ordering food. However, 22% of Austrians are not able to save on rent. 48% use the advantage apps of supermarkets, and 70% of Upper Austrians rarely or never use second-hand products for savings.
In conclusion, the report highlights the need for targeted policies to address the financial challenges faced by women and the elderly in Austria. As the country navigates ongoing economic challenges, it is crucial to ensure that these vulnerable groups are not left behind.
The financial difficulties faced by women and the elderly in Austria are starker compared to the general population, as their lower incomes and savings buffers make them more vulnerable to economic shocks and inflation impacts. Moreover, the persistent gender pay gap and lower pension entitlements for women as well as increased financial pressures due to inflation and cost of living increases experienced by the elderly have exacerbated their financial struggles in areas such as personal-finance and business.
