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Pension shock 2025: This is how much the net income of seniors will fall!
From June 1, 2025, health insurance contributions for pensioners in Austria will increase, leading to higher costs and net losses.
Pension shock 2025: This is how much the net income of seniors will fall!
From June 1, 2025, health insurance contributions for pensioners in Austria will be increased from 5.1% to 6%. This measure, which is set out in the “Budget Restructuring Measures Act II”, has far-reaching financial consequences for those affected. On average, pensioners have to expect a net loss of around 200 euros per year, which further limits the already often limited resources. Both men and women are affected, with men being confronted with higher gross pensions on average than women.
The new contribution rates mean that net pensions will shrink significantly. There are specific loss figures for different gross pension amounts:
| Gross pension (Euro) | Net pension 2025 (Euro) | Monthly loss (Euro) |
|---|---|---|
| 1,500 | 1,423.50 | -13.50 |
| 1,750 | 1,633.56 | -12.60 |
| 2,000 | 1,799.84 | -10.74 |
| 2,250 | 1,941.44 | -12.09 |
| 2,500 | 2,083.05 | -13.43 |
| 2,750 | 2,228.77 | -17.33 |
| 3,000 | 2,394.84 | -18.90 |
| 3,500 | 2,693.48 | -18.90 |
Effects of health insurance contributions
The increase in health insurance contributions will be borne by pensioners alone and will bring the budget 600 million euros this year and 1.2 billion euros next year. This measure is considered necessary because pensioners often pay lower contributions compared to employees but require more medical treatment. For example, with a gross pension of 1,300 euros there is a loss of 162 euros per year, while with 2,200 euros the annual losses are 171 euros.
Private individuals with very low pensions, for example 1,000 euros, will hardly be affected, as the net loss is only 2 euros per month. But viewed overall, the reform will place a significant financial burden on pensioners.
Further reforms and future developments
In addition to the increased health insurance contributions, further savings measures are expected from July 2024. This includes fee increases for passports, ID cards and driving licenses. These measures are in the context of a comprehensive budget plan of the new Austrian government, which wants to contribute a total of 2.9 billion euros from the pension sector to budget consolidation by 2031.
In addition, reforms are planned, which include, among other things, the introduction of an older employment package as well as changes to prescription fees and partial pensions. In the future, the pension adjustments will also vary for pensioners who will retire from 2026, as they will only receive half of the usual adjustment in the first year.
The current situation presents retirees with major challenges and is forcing many to rethink their financial planning. The new measure reflects how much changes in the healthcare system and pension reform can affect the quality of life of the older generation. Comprehensive burden sharing by society remains a relevant issue that should not be ignored in the coming discussions.