Austria's government is planning drastic changes in pensions!

Austria's government is planning drastic changes in pensions!

Austria's government coalition, which is known as an Austro-Stampel, faces the challenge of reducing a deficit of 18 billion euros in the next seven years. A central point of this strategy are drastic savings in the pension system, such as kosmo.at . With an increase in health insurance contributions from 5.1 to 6 percent from June 1, 2025, the financial burden will be increased for pensioners. It is also planned to raise the factual retirement age in order to save around 2.9 billion euros by 2031. Currently, men retire on average with 62.3 and women at the age of 60.2 - both are below the legal age.

planned reforms

increased focus is on the corridor pension, which is increased from 62 to 63 years, while the required insurance years are to be increased to 42. This brings offset for earlier retirement, which should make workers stay in the job longer. Beate Meinl-Reisinger, the head of the NEOS, describes the package of measures as "very determined". As part of the "sustainability mechanism", the government must take appropriate measures if the goals are not achieved, such as Puls24.

In addition, a new partial board is introduced, which enables long -term employees to reduce their working hours after 42 years of working, while they still receive income from the pension. Further reforms include the revival of "aliquoting", which provides for partial adjustment to inflation in the first year of the pension. These measures should not only control pension expenses, but also create incentives for older workers and increase their length of stay in working life.