Pensioners cheer: 2.7% inflation adjustment for 71% of the recipients!

Pensioners cheer: 2.7% inflation adjustment for 71% of the recipients!

On September 12, 2025, an agreement was announced to increase the pensions, which is recognized by the SPÖ, represented by social spokesman Josef Muchitsch, as significant progress. This is done in cooperation with the Minister of Social Affairs Korinna Schumann, the ÖVP and the NEOS. According to the agreement, all pensioners receive an inflation compensation of 2.7 percent with an income of up to 2,500 euros. This regulation affects around 71 percent of 2.3 million people in statutory pension insurance in Austria. For higher pensions, an increase of 67.50 euros per month is provided, which corresponds to an annual increase of 945 euros, such as [ots reported] (https://www.ots.at/presseaus-sung/ots_20250912_ots0141/spoe-social spokesman-Muchitsch-voll-fuer-den-deiTe-DeiTeiTeiTe- and-pensionists).

The agreement could be an important contribution to financial relief for many pensioners who have suffered from increasing living costs over the past few years. The focus is therefore on the situation of the older population, which is often particularly affected by inflation.

Background for pension reform

The current developments are carried out in the context of an extensive pension reform, which is called one of the largest in recent years. As Die Presse explains, many citizens are skeptical about the promises of turquoise-red pink, the necessary interventions are to be implemented into the pension system. In particular, the reform process is often postponed to the government after next. The Minister of Social Affairs Schumann and leaders of the SPÖ were not present at the presentation of the reform, which further fueled the public discussion.

The interim chief of the Red Pensioners characterized the reform as “existential”. So far, the SPÖ sees no need for the reform, but has been able to achieve savings that are estimated at around one billion euros a year by 2029. However, these savings do not even cover the pension hole of a single month.

Financial challenges and measures

The pressure on the system is increasing with around 30 billion euros annually, which flow in civil servants and grants for statutory pension insurance. The subsidy for the statutory pension insurance rose from EUR 10 billion in 2015 to 18 billion euros in 2024. The fiscal council also warns of an impending funding gap in the pension and health system.

There are currently around 50 pensioners for 100 employees. This number is expected to increase to 70, which underlines the urgency of reforms. ÖVP and NEOS are aware of the problem and speak out for a higher level of regular board. A sustainability mechanism should also create a statutory budget path for pensions and take savings measures from January 1, 2035, should this path be left. Nevertheless, it remains unclear which specific measures should be taken to meet the requirements of pension reform.

In summary, a diversified approach to pension adjustment and a general need to maintain the financial load capacity of the pension system in Austria, while many pensioners will benefit from the recent agreement, according to the assessment of SPÖ.