Austria
Worked in Austria? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 65, with early access from 62. On totalization, Austria has bilateral totalization agreements, so the years you worked here may combine with other countries you've worked in. Below is Austria's system at a glance and what expats should check.
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Overview
Austria operates one of the most generous public pension systems in the OECD, built around a dominant earnings-related pay-as-you-go (PAYG) first pillar.
The system transitioned to an individual pension account model in 2005 under the Act on Harmonisation of Austrian Pension Systems, with a 1.78% annual accrual rate applied to lifetime earnings. The statutory retirement age is 65 for men; for women it is being incrementally raised from 60 to 65 between 2024 and 2033 (reaching 61 in 2025). The total contribution rate is 22.8% of gross earnings, split between employees (10.25%) and employers (12.55%), supplemented by federal budget transfers. Pensions are indexed annually on 1 January based on average CPI inflation; for 2025 the adjustment was 4.6% for pensions up to €6,060/month. Austria's gross replacement rate for average earners is at or above 70% and the net replacement rate exceeds 85%, among the highest in the OECD.
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The system comprises three pillars: the mandatory statutory pension insurance (Pillar 1), voluntary employer-sponsored occupational pensions via Pensionskassen (Pillar 2), and private personal pension arrangements (Pillar 3). The first pillar dominates, with only around 25% of employees receiving any supplementary occupational pension. A new partial pension scheme (Teilpension) was introduced from January 2026, allowing eligible workers to reduce hours by 25–75% while drawing a proportionate pension. A sustainability mechanism was also legislated in 2025 to monitor pension expenditure through 2030, with automatic corrective measures triggered if spending exceeds defined targets.
Austria has an extensive network of bilateral social security agreements covering over 30 non-EU countries, in addition to EU/EEA coordination under Regulation (EC) 883/2004. Pensioners living abroad must submit an annual proof-of-life certificate (Lebensbestätigung), with a new digital option now available via PVA's cooperation with POS Solutions GmbH. Austrian pensions are subject to Austrian income tax; under the US–Austria double tax treaty, Austrian pension payments are exempt from US federal income tax for US residents.
≥70% for average earner (OECD Pensions at a Glance 2025; one of highest in OECD)
pillar 1: name: Statutory/Public Pension Insurance (Pensionsversicherung). description: Mandatory state-funded pay-as-you-go system covering all employees and self-employed. Financed through monthly contributions from workers and employers (22.8% total), with federal budget supplements. Managed by PVA (largest carrier, ~5.6 million insured), BVAEB (public servants, railways, mining), SVS (self-employed), and VAN (notaries). Individual pension account model since 2005 with 1.78% annual accrual rate on lifetime earnings. governance: Federal Ministry of Social Affairs, Health, Care and Consumer Protection (BMSGPK); PVA — Pensionsversicherungsanstalt. contribution model: Pay-as-you-go (current contributions finance current pensions). pillar 2: name: Occupational Pension Provision (Betriebliche Altersvorsorge / Pensionskassen). description: Voluntary employer-sponsored pension plans. Employers make monthly contributions to separate, FMA-regulated pension funds (Pensionskassen). Defined contribution plans are now the norm. Only ~25% of employees receive a supplementary occupational pension. Employer contributions up to 10.25% of salary are tax-deductible. governance: FMA (Finanzmarktaufsicht) regulates Pensionskassen. contribution model: Employer contributions (voluntary); employee contributions possible under scheme rules. pillar 3: name: Private Personal Pension Arrangements (Zukunftsvorsorge / private Pensionsvorsorge). description: Individual voluntary private pension plans. Includes the state-subsidised premium-aided pension savings scheme (Prämienbegünstigte Zukunftsvorsorge). Citizens may establish personal savings accounts or insurance-based pension products. governance: Individual choice; insurance companies and pension providers; FMA oversight. contribution model: Individual voluntary contributions.
Bismarckian / Social insurance — earnings-related defined-benefit PAYG with individual pension account model
Employee
10.25
Employer
12.55
Self-Employed
18.5
Notes
Total pension contribution rate is 22.8% of gross earnings for employees (employee 10.25% + employer 12.55%). Self-employed (GSVG/FSVG) pay 18.5% with a federal 'partner contribution' of 4.3% making up the difference to 22.8%. Farmers pay 17.0% with a 5.8% federal partner contribution. Maximum contribution base is €6,930/month (2026) for regular payments. Employer also pays 1.53% of gross salary into mandatory employee provident fund (Mitarbeitervorsorgekasse). Contributions are exempt from income tax; pensions in payment are taxed as employment income.
Common questions
What is the retirement age in Austria?
The full state pension age in Austria is 65. Early retirement may be possible from 62.
Can I claim a Austria pension if I live abroad?
Yes. A pension you've earned in Austria stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through Austria's pension authority.
Do totalization agreements affect my Austria pension?
Austria has bilateral social-security (totalization) agreements. These can let you combine the years you worked in Austria with years in partner countries to meet a minimum qualifying period, so short stints aren't wasted. Which partners and rules apply depends on your own work history.
How is the pension system structured in Austria?
Bismarckian / Social insurance — earnings-related defined-benefit PAYG with individual pension account model pillar 1: name: Statutory/Public Pension Insurance (Pensionsversicherung). description: Mandatory state-funded pay-as-you-go system covering all employees and self-employed. Financed through monthly contributions from workers and employers (22.8% total), with federal budget supplements. Managed by PVA (largest carrier, ~5.6 million insured), BVAEB (public servants, railways, mining), SVS (self-employed), and VAN (notaries). Individual pension account model since 2005 with 1.78% annual accrual rate on lifetime earnings. governance: Federal Ministry of Social Affairs, Health, Care and Consumer Protection (BMSGPK); PVA — Pensionsversicherungsanstalt. contribution model: Pay-as-you-go (current contributions finance current pensions). pillar 2: name: Occupational Pension Provision (Betriebliche Altersvorsorge / Pensionskassen). description: Voluntary employer-sponsored pension plans. Employers make monthly contributions to separate, FMA-regulated pension funds (Pensionskassen). Defined contribution plans are now the norm. Only ~25% of employees receive a supplementary occupational pension. Employer contributions up to 10.25% of salary are tax-deductible. governance: FMA (Finanzmarktaufsicht) regulates Pensionskassen. contribution model: Employer contributions (voluntary); employee contributions possible under scheme rules. pillar 3: name: Private Personal Pension Arrangements (Zukunftsvorsorge / private Pensionsvorsorge). description: Individual voluntary private pension plans. Includes the state-subsidised premium-aided pension savings scheme (Prämienbegünstigte Zukunftsvorsorge). Citizens may establish personal savings accounts or insurance-based pension products. governance: Individual choice; insurance companies and pension providers; FMA oversight. contribution model: Individual voluntary contributions. It includes 9 schemes in our directory.