Austria: major pension system reform proposed

An article by Thomas Schnee

Publication

27 June 2025 à 14h00

Reading time

4 minutes

Publication: 27 June 2025 à 14h00

Reading time: 4 minutes

On 18 June, the leaders of the parliamentary groups of Austria's governing parties (conservatives, social democrats and liberals) announced the broad outlines of a pension reform plan. The planned revamp aligns with the thinking and measures seen elsewhere in Europe: maintaining the pay-as-you-go system but extending contribution periods and raising the legal retirement age, making it easier for pensioners to work and reducing gender gaps. A bill must now be adopted by the Council of Ministers, the country's cabinet.

An article by Thomas Schnee

Publication

27 June 2025 à 14h00

Reading time

4 minutes

Publication: 27 June 2025 à 14h00

Reading time: 4 minutes

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Having long been held up as a model, the Austrian pension system is now becoming increasingly costly for the federal government, which is seeking to reduce its deficits. As such, the leaders of parliamentary of coalition government, which brings together the Conservatives (ÖVP), the Social Democrats (SPÖ) and the Liberals, announced a package of measures at the cabinet meeting on 18 June that was described as historic by the leader of the Liberal Party (Neos) parliamentary group, Yannick Shetty

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Article authors

Featured image of the article Thomas Schnee

Thomas Schnee Correspondent in Germany

As a Berlin correspondent for the French and Swiss press since the late 1990s, I cover a wide range of economic, political and social issues, with a particular focus on the German business and labour market. My areas of interest include co-determination, digitalisation, demographics and ESG/DEI policies.