Austria's pension reform 2026: Partial board for gentle change of retirement!

Austria's pension reform 2026: Partial board for gentle change of retirement!

Österreich - Austria faces a fundamental reform of his pension system, which is due to come into force from 2026. The planned introduction of a partial board is intended to enable a gradual transition to retirement and at the same time increase the factual retirement age and reduce pension costs. This is reported by Kosmo .

An important reason for this reform is demographic change. The Austrian population ages while the number of young workers decreases. Currently, men retire on average at 62.3 years and women at the age of 60.2, although the regular pension age is 65 years old. In a first step, the inaugural age for the early retirement should be increased from 62 to 63 years. The draft law on the partial board will go into assessment this week and should be decided in summer.

The details of the partial board

The new partial board offers employees: inside the opportunity to reduce working hours when the pension claim is reached and only move into a part of the pension. The pension insurance contributions for the part -time salary will continue to be paid, which increases the later pension claims. The reduction of working hours can be done in three stages:

• 25-40% Reduction: 25% of the total pension account.
• 41-60% Reduction: 50% of the pension in addition to part-time content.
• 61-75% Reduction: 75% of the pension paid.

An example illustrates this regulation: A 63-year-old employee with a claim to 3,000 euros pension is 50% in partial retirement. The partial board is 1,347 euros according to discounts. However, the partial retirement is less attractive, the maximum duration of which is shortened from five to three years to achieve savings for the state, as

economic effects of the reform

The government expects around 10,000 people to take part in the partial board a year from 2026. These measures are to generate savings of around one billion euros a year by 2029. The combined reform is expected to bring savings of 197 million euros in the first year and 402 million euros in the second year in the first two years. In the long term, by reducing unemployment of older workers: inside up to 2040 annual savings of up to 1.5 billion euros, such as the Momentum Institut forecast.

In addition, there will be suggestions for changing corporate culture in order to avoid discrimination against older workers: inside. Companies that hire at least one person over 60 years could benefit from reduced pension insurance contributions. This should also contribute to the integration of older employees on the labor market.

Pension reform in Austria is supported by intensive specialist knowledge and seems to be based on proven international models. The aim is to create a sustainable pension system that meets both the needs of the older population and reduces state costs in the long term.