New, tough savings plans

Will seven million now lose pension entitlements?

It is feared that working people could suffer losses of up to 34,000 euros in their pension at a later date.

(Bild: stock.adobe.com/lev dolgachov)

The FPÖ and ÖVP are now circulating a drastic measure that could affect seven million people: a suspension of pension account increases. The "Krone" explains what this means and why working people would lose tens of thousands of euros in their later pension.

Erik Türk, pension expert at the Chamber of Labor, describes the possible plans to suspend the increase in the pension account as "crazy": "Something like this would lead to massive uncertainty for people in a system that is based on reliability, clarity and transparency."

1.78 percent of the gross salary goes into the pension account
Specifically, all employees have a pension account (which can be viewed online at neuespensionskonto.at), into which a certain percentage - specifically 1.78% of gross salary - is credited each year. All previous credits result in the so-called "total credit", which is then later identical to the annual gross pension on retirement.

Erik Türk, pension expert at the Chamber of Labor, describes possible plans to suspend the adjustment of the pension account as "crazy".

(Bild: AK Wien)

During working life, the total credit is always revalued at the beginning of the year - in simple terms as an inflation adjustment. As of January 1, 2025, the revaluation of pension accounts amounted to a high 6.3 percent. This has significantly increased the pension entitlements of working people in Austria (see chart). Example: 50-year-old men typically have EUR 21,804 in total credits, so the 6.3 percent revaluation has meant an increase of EUR 1,374. On average, 50-year-old women have 13,838 euros "standing", which was revalued by 872 euros at the beginning of 2025. Every working person can already view the individual revaluation online in their pension account.

(Bild: Krone KREATIV/stock.adobe.com)

AK expert Türk now fears that the FPÖ and ÖVP will reverse this increase, which every employee can already see in their pension account. Türk: "This is the only way that savings in the pension account could have an impact on the budget this year."

Loss of up to almost 35,000 euros
The consequences would be devastating for all employees. Example: 60-year-old men received an average plus of 2011 euros at the start of 2025. If they retire at 65 and with a statistical life expectancy of a further 17 years for men, this results in a total gross pension loss of 34,187 euros.

Although 60-year-old women only have an average of EUR 1127 in their pension account, they currently retire even earlier and have a longer life expectancy. For example, a woman who will soon retire at the age of 62 still has a statistical life expectancy of 23.5 years. Multiplied by the 1127 euros, this results in a total loss of 26,485 euros.

For younger people, the loss would be even more significant later on, as they would also "fall over" by the future percentage increases in the 2025 revaluation if this is canceled.

Over seven million people would be affected
In any case, millions would be affected: According to information from the pension insurance company, 7,097,209 people had an active pension account as of September 30 of the previous year. Of course, it is still unclear whether it would be legally possible to retroactively cancel the revaluation of total credits that has already taken place as of January 1, 2025.