Pensions 2026: Full inflation compensation for 1.65 million seniors!

Pensions 2026: Full inflation compensation for 1.65 million seniors!

On September 12, 2025, the government parties in Austria reached an important agreement on pension adjustments for the coming year. Seniors whose pensions are up to 2,500 euros receive the full inflation compensation of 2.7 percent. This affects around 1.65 million pensioners, i.e. 71.4 percent of all Austrian seniors with a statutory pension, and provides significant relief in times of rising living costs. However, from a pension of 2,500 euros, only a fixed amount of 67.5 euros is paid, which corresponds to an increase of 2.7 percent on the amount of 2,500 euros.

The costs for this pension adjustment amount to 1.73 billion euros. The socially staggered regulation is expected to achieve savings of around 350 million euros compared to a model of a general increase. The aim is to create a socially fair balance of inflation while at the same time stabilizing the country's budgetary situation exxpress.at reported.

Social justice in the pension system

Social Minister Korinna Schumann emphasizes that the adjustment takes into account the needs of people with small and medium-sized pensions. ÖVP social spokesman August Wöginger praises the solution as socially balanced, as two thirds of pensioners receive full inflation compensation. Nevertheless, NEOS social spokesman Johannes Gasser calls for pension increases to be more prudent.

Increasing these pension classes could also have a positive impact on the purchasing power of the seniors affected. However, experts warn of a long-term loss of purchasing power with higher pensions and are calling for far-reaching reforms of the pension system and an increase in the retirement age. This emerges from statements by Christoph Badelt, a member of the Fiscal Council, who also emphasizes the need to reform the entire pension landscape in order to secure financial stability in the long term.

Different opinions on adaptation

Despite the positive response, there are also critical voices. Walter Pöltner describes the adaptation as “populist” and “not social”. Although the senior citizens' representatives are satisfied with some aspects of the regulation, they are demanding an increase that goes beyond the rate of inflation. An important voice here is Birgit Gerstorfer from the SPÖ-affiliated representation, who is pushing for greater protection for seniors against inflation.

The Industrial Association sees the staggering of pension adjustments as the “right step”, but also believes that further reforms are necessary. FPÖ leader Herbert Kickl also sharply criticizes the adjustment and sees pensioners as disadvantaged. The Green Party, on the other hand, is satisfied with essential demands, but criticizes additional contributions necessary to consolidate the budget.

The new regulations, which are based on total pension income, take into account all pension benefits and special pensions. This could enable a fairer system, but several stakeholders continue to call for reforms to better address future challenges.

This pension adjustment, which is characterized by a combination of social fairness and economic considerations, will continue to fuel the discussion about the Austrian pension system in the coming months. However, more than 1.65 million pensioners can rely on at least some stability in their pension payments while political actors have to deal with the numerous challenges and different opinions.

Further information on the background to this decision can be found on OTS.at and orf.at be read.