Bieler warns: No license for pension cuts in the new system!

Bieler warns: No license for pension cuts in the new system!

Österreich - On June 19, 2025, concern for the announced changes in the pension system is growing. Helmut Biel, Interimistic President of the Pensioners' Association of Austria (PVÖ), is critical of the “sustainability mechanism” proposed by the Federal Government. He decidedly reject the idea of an output cover for guest houses, which is due to come into force from 2030. Bieler describes this mechanism as a potential “license for pension cuts” and asks the government to seek the conversation with the representatives of the seniors in order to address the concerns of the older generation. As a former employee, Bieler has made it clear that pensioners are the results of decades of employment and contributions and may not be regarded as alms. He makes it clear that pensioners are not allowed to serve as a "milking cows for the budget". The PVÖ already expressed skepticism in the presentation of the government's work program towards sustainability mechanism, emphasizes Bieler.

The pension reform, which will be assessed from 2024, comprises several significant changes, including the corridor board, the aliquoting of the first pension adjustment and the already mentioned sustainability mechanism. These reforms were presented by the club bans from the ÖVP and NEOS, while the Social Democrats were not present. Neos club chairman Yannick Shetty described the planned changes as "largest pension reform in 20 years". The central goal of the reforms is to keep people longer in working life.

Details on the pension reforms

Currently there are around 2.5 million pensioners in Austria, forecasts expect around 3.25 million by 2045. However, the existing levy procedure for financing the pensions is considered inadequate. In order to counteract this, annual grants of 30 billion euros are required. The Reformed aspects include raising the earliest possible starting age for the corridor pension from 62 to 63 years from January 1, 2026 and an increase in the required insurance years from 40 to 42.

This increase is gradually achieved in quarters, with hope to achieve savings of one billion euros annually from 2029. In addition, a partial board is introduced, which allows it to obtain 50% of the pension from 2026 and continue to work 50%. A practical example: A 63-year-old man with a gross income of 4,000 euros would earn 350 euros more than in the corridor board. From 2026, the aliquoting of the first pension adjustment will also be set to 50%, regardless of the inaugural month.

The government's reaction and other measures

In order to cushion the loads from increased health insurance contributions, an increase of 5.1% is introduced to 6% for pensioners from 1 June. The Ministry of Social Affairs also plans to make cushioning measures for hardship cases, including freezing the prescription fee from 2026. An incentive and monitoring system for the employment of people over the age of 60 is also planned to create jobs for older workers.

In the middle of these discussions about reforms and mechanisms, the question remains how well the needs of the elderly are taken into account in the government's considerations. Bieler's words that the government not only focuses on household cuts, but rather that the people behind the numbers should also be recognized. At a time when reforms are urgently needed, he appeals to those responsible not to ignore seniors.