Austria: major pension system reform proposed

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. 

By Thomas Schnee. Published on 27 June 2025 à 14h08 - Update on 27 June 2025 à 14h09

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,…

Thomas Schnee

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