Pension reform 2026: partial board and higher contributions - what counts now!

Pension reform 2026: partial board and higher contributions - what counts now!

From January 1, 2026, far -reaching changes in the pension system come into force in Austria. This reform became necessary to counter the challenges of demographic change. In view of a steadily growing number of pensioners - currently 2.5 million, and around 3.25 million by 2045 - the traditional surplus procedure can no longer be maintained. Annually, around 30 billion euros must be contributed to the financing of the pensions, as [ORF] reports.

A central measure is the partial board that enables people to receive a salary and at the same time receive part of the pension. This regulation is expected to benefit around 10,000 people. This is associated with the possibility of reducing working time between 25% and 75%. With a 50%reduction in working hours, for example, a person with 3,000 euros credit after discounts can receive 1,347 euros in addition to the pension, as [5min] explained.

changes in the inaugural agents and insurance years

Another essential point of the reform is the increase in the starting age for the corridor pension from 62 to 63 years. This is carried out in quarterly steps until the goal is reached. In addition, the necessary insurance years increase from 40 to 42 years. The necessary months for a full pension are increased to 502 months, as [Austria Aktuell] emphasizes. The changes also affect the restriction of early retirement and the regulation for the aliquoting of the pensions, which is reduced to 50 percent if pensioners retire shortly before the end of the year.

The Minister of Social Affairs Korinna Schumann announced savings of 197 million euros in the first year and 402 million euros in the second year. These reforms, including the fusion of partial retirement and partial board as well as the reduction in partial retirement grants, ensure sustainable financing of the pension system.

reactions and outlook

Despite the positive approach to the reform, there are mixed reactions. Critics, including FPÖ boss Herbert Kickl, refer to the reform as a "stress attack on the older generation" and speak of a loss of solidarity. The Greens also reject the project. However, experts welcomed the reform as the first step, although they criticize the inadequacy of the package of measures. In this context, an incentive and monitoring system is promised for the employment of people over the age of 60 to promote the integration of older workers.