Pension funds in Austria: records and increasing demands!

Pension funds in Austria: records and increasing demands!

The latest developments in the Austrian pension funds show a pleasant recovery in the third quarter of 2024. According to the report of the financial market supervisory authority (FMA), the pension funds managed a fortune of 28.14 billion euros at the end of the third quarter, which corresponds to an increase of 1.96 % compared to the previous quarter. The assessment performance was remarkable in the third quarter and was 1.87 %, which results in a performance of 5.92 % for the first nine months of the year. Within the past ten years, the average annual performance is 3.17 %, this is evident from the information that is under OTS .

The positive trend continued in the first quarter of 2024: The eight domestic pension funds achieved an average performance of 2.76 %, after an impressive increase of 6.41 % in the previous year. Particularly noteworthy is the Valida pension fund, which was even above the market cut with a growth of 3.07 %. This proves the stability of the Austrian pension fund system. Undergraded, every fourth employee is now entitled to an additional company pension, which corresponds to over 1.1 million people. Despite these positive developments, the specialist association of pension and precautionary health insurance companies is calling for a nationwide expansion of the system to improve company pension schemes, as reported in the Scandinavian countries, as reported on raiffeisenzeitung

long -term view and challenges

The long -term performance of the pension funds is a solid 4.95 % and shows that the system generally works. Nevertheless, Austria faces major challenges: The average additional pension is only 421 euros per month, and demographic development makes you take notice. The population will exceed the ten million mark by 2060, while the ratio of employed people to the pensioners will deteriorate drastically. Specialist association chairman Andreas Zakostelsky is therefore committed to a reform of the pension system and emphasizes the urgency of a comprehensive expansion of company pension scheme as a necessary step to ensure future quality of life in old age.