Austria's pension reform: great upheaval and new rules from 2026!

Austria's pension reform: great upheaval and new rules from 2026!

Vienna, Österreich - On May 2, 2025, significant changes in the pension system are imminent in Austria. The government has heralded the first steps towards comprehensive reform, which should come into force from 2026. Important aspects of this reform have recently been discussed in the political discussion, with the first innovations in assessment on Friday, as vienna.at

The central elements of the reform include the corridor board and the introduction of a partial board. These measures should serve to keep people longer in working life. There are currently around 2.5 million pensioners in Austria, and the forecasts assume that this number will increase to around 3.25 million by 2045. According to Krone , the financial pressure on the pension system is also increasingly noticeable due to an annual deficit of 30 billion euros, which requires the intensification of reforms.

corridor pension and partial board

The corridor pension will be gradually increased from 62 to 63 years from January 1, 2026. The required insurance years also increase from 40 to 42 years. With these measures, the government expects savings of around one billion euros per year from 2029. Neos club chairman Yannick Shetty describes the reform as the largest in 20 years and emphasizes the partial board as a possibility to act more flexibly.

The sub -pension allows 50% of the pension to be obtained and at the same time continued 50%. As part of this regulation, various models are offered, including the opportunity to retire a quarter of the time and continue working three quarters. For example, this would enable a 63-year-old man with a gross income of 4,000 euros to earn about 350 euros more than in the corridor board.

sustainability mechanism as protection

Another central point of the reform is the introduction of a sustainability mechanism that is intended to oblige future governments to comply with certain pension goals. In the event of non -compliance, additional measures must be taken for the pension system. According to Social Minister Korinna Schumann from the SPÖ, pensioners also have to contribute to the renovation of the budget, whereby the sustainability mechanism is described as a "airbag for the budget".

In addition, the introduction of the flat tax for work beyond pension age is discussed in order to create incentives for employment of people aged 60 and over. For this purpose, the government is planning an incentive and monitoring system that aims specifically on this age group.

For the implementation of the reforms, an assessment of the law on partial board is already underway. The law for the sustainability mechanism will follow in the course of the year. While the club bans from ÖVP and Neos presented their plan, the SPÖ was not present, which was considered no expression of conflict.

For in-depth insights into the pension system and old-age insurance, on the website of the Social Ministry DISIENSTIONS AND studies, which are available, which are available Analysis of the development and challenges in the Austrian pension system.