Austria’s retirement income system consists of a hybrid defined benefit public scheme with an incometested top-up for low-income pensioners and voluntary private pension plans.
The overall index value for the Austrian system could be increased by:
- introducing a minimum access age so that the benefits from private pension plans are preserved for retirement purposes
- increasing coverage of employees in occupational pension schemes thereby increasing the level of contributions and assets (can be done by collective bargaining)
- introducing arrangements to protect the pension interests of both parties in a divorce
- enabling individuals to retire gradually whilst receiving a part pension
- increasing the labour force participation rate at older ages
The Austrian index value fell slightly from 52.8 in 2014 to 52.2 in 2015 due to a number of small changes.