Austria pension reform: NEOS proposes gradual increase to age 67

Debates regarding the future of the Austrian pension system have intensified following a proposal by the NEOS party to gradually increase the legal retirement age to 67. The proposed model suggests that starting in 2030, the retirement age would increase by two months each year, reaching 67 by 2041. This gradual approach is intended to allow workers to plan ahead and address the financial pressures caused by increasing life expectancy.

To facilitate a broad political consensus, a “pension summit” involving all political parties has been proposed for this autumn, with discussions expected to begin in September. While the proposal aims for long-term sustainability, it has faced criticism from the FPÖ, which characterized the potential agreement between the ÖVP and NEOS as an “unsocial pact.” The FPÖ argues that funds are available but are being mismanaged, and has dismissed the proposed summit as a mere show to align parties with a plan they deem detrimental to retirees.