Austria's new government: Pension cuts and changes are imminent!

On Monday, March 3, 2025, the new government in Austria from ÖVP, SPÖ and Neos was praised. In the days before, an extensive government program had already been agreed that provides for far -reaching changes in the field of pensions. The latest savings plan includes that future pensioners have to expect noticeable financial losses, which will lead to an immediate blow to the wallet for many older fellow citizens, such as 5min.at reported. From June 1, 2025, the health insurance contribution for retirees will increase from 5.1 to 6 percent, which could lead to a net pension loss of several hundred euros annually.

As part of the government program, massive reforms are also planned for the corridor pension. These regulations will be tightened from 2026: In order to be able to receive a corridor board, pensioners must now prove 42 insurance years and be at least 63 years old. If the planned budget path for pension expenses is not met, further measures could be necessary by 2035, which makes financial planning much more difficult for many. The government is aiming to contribute a total of 2.9 billion euros in the pension area to household consolidation by 2031, reported Kleinezeitung.at .

flexible entry into pension life?

The considerations of pairing the prime age to the increasing life expectancy and introducing a "flexipension" in which pensioners can choose between the ages of 61 and 69 also seem to be part of the new strategy. At the same time, the focus is also on the vocational training of older workers in order to enable a flowing transition to the pension. In any case, incentives for employers to create age -appropriate jobs could also be part of these reforms in order to keep as many older workers as possible in professional life. However, the uncertainty about future changes in the pension system remains, especially in view of the upcoming elections until 2029. It remains to be seen whether these measures will actually be sufficient for the well -being of the older generation.