ABSTRACT
The basis of the Austrian old-age insurance scheme consists of statutory old-age insurance. Throughout the world, in developed and a few developing countries, social security systems are under discussion and a subject of reflection. Most of the financial resources required by the Austrian old-age insurance system come from employees' and employers' contributions. At the forefront of the 1997 pensions reform was the commissioning by the federal government of a report by Professor B. Rurup on the viability of the Austrian old-age insurance scheme up to the year 2030. The States Parties recognized the right of every individual to social security. The main argument for giving consideration to funded schemes is the level of interest on capital. The more employed people there are, the more provision for old-age pensions is secured by their contributions paid under the pay-as-you-go system. Only pay-as-you-go schemes allow the spread of risk across socially representative generations.
