Austria’s National Council passed a minor pension reform on Thursday. Starting next year, a new partial pension will allow older workers to begin drawing part of their pension while continuing to work part-time. In return, early retirement (Altersteilzeit) will be restricted, and a sustainability mechanism to stabilize the pension system will be introduced. The FPÖ rejected the entire reform, while the Greens only supported the partial pension.
The aim is to keep people in the workforce longer. Partial retirement becomes available as soon as someone qualifies for a regular pension. Working hours must be reduced by at least 25% and at most 75%, with employer approval. Early retirement will be limited to the period before pension eligibility—maximum three years instead of five. Due to budget constraints, the government wage compensation for part-time retirement will be temporarily reduced from 90% to 80% for the years 2026 to 2028.
Social Affairs Minister Korinna Schumann (SPÖ) called the partial pension an opportunity for a smoother transition into retirement. “State pensions remain secure,” she assured. To ensure this continues, the sustainability mechanism will trigger action if the budget path to 2030 is exceeded. Potential responses include raising the early retirement age, increasing contributions, delaying pension access, or reducing adjustments. Schumann believes the path will be met and the mechanism won’t be activated. She called on employers to help by hiring and retaining older workers.
FPÖ and Greens Vote Against Reform
The FPÖ saw the entire reform as a worsening of conditions for future retirees. FPÖ social spokesperson Dagmar Belakowitsch accused the coalition of wanting to raise the retirement age to 70.
The Greens were more nuanced: they supported the partial pension as “very reasonable” but rejected the cutbacks in early retirement and the sustainability mechanism. MP Markus Koza argued secure pensions could only come from high employment, good wages, and measures to keep people working longer—not “yet another sustainability paper tiger.”
ÖVP parliamentary leader August Wöginger called the partial pension a “win-win” for employees. The goal, he said, is to align the actual retirement age more closely with the legal one and to boost employment—preferable to raising the legal pension age.
NEOS leader Yannick Shetty called it a “historic day.” He said the reform was a starting point, not the final step, and that the sustainability mechanism marked the first shift in pension policy in 20 years—freeing up more funds for education, integration, and climate protection.
