Austria’s corporate pension assets hit €74.3 bn as debate over raising retirement age intensifies

The volume of occupational pensions in Austria grew by 24% between 2019 and 2025, reaching €74.3 billion. The second pillar still accounts for only 8% of private household wealth, placing Austria in the middle of Europe behind the Netherlands and Germany. Pension funds manage the largest share (41% or €30 billion) and, unlike the euro‑area average, invest heavily in investment funds – 94% of pension‑fund assets and 85% of “Vorsorgekassen” are placed in funds, creating a high foreign‑exposure of about 90%. Performance at the end of 2025 was 4.86% for pension funds and 3.61% for Vorsorgekassen. The federal government plans reforms that would let employees keep their severance payments in longer‑term, higher‑yield accounts without a capital guarantee and ease transfers to pension funds.

The Pensioners’ Association of Austria (PVÖ) warned against any increase of the statutory retirement age or linking it to life expectancy. PVÖ president Birgit Gerstorfer said, “Living longer does not automatically mean being able to work longer in full health.” She noted that in June 2026 about 120,000 people aged 50+ were unemployed or in training, with older women especially disadvantaged. The association calls for a “fundamental course change” in labour‑market policy before discussing a higher retirement age, emphasizing the need to keep older workers in employment.