Overview

• Official figures show 42% of roughly 19 million pensioners receive under €1,000 a month, with more than eight million below the €1,011 basic‑security level at the end of 2024; average pensions were €1,154, with men at €1,405 and women at €955.
• The government is preparing an Aktivrente to start on 1 January 2026 that would let people at statutory pension age earn up to €2,000 per month tax‑free in paid work, subject to passage of the draft.
• Fiscal estimates diverge sharply, with the IW projecting €2.8 billion in annual revenue losses, the DIW €770 million, and the Finance Ministry about €900 million in the first year.
• Trade unions, the VdK and employer groups argue the measure largely rewards healthier, better‑paid retirees and risks strong ‘take‑up without need,’ while many older workers cannot extend employment due to job strain.
• Structural strains persist as only about 40% of 2024 new retirees reached the statutory age and nearly 740,000 pensioners relied on basic assistance, while Austria plans from 2026 to give full inflation hikes only to pensions up to €2,500 gross.