Old-age pension entitlement

Advice

All individuals enrolled in pension schemes are subject to a set maximum contribution base of 5,670 euros a month, as well as a universally applicable low income threshold of 485.85 euros a month.

Caution

The period over which the benchmark is calculated will be increased annually up to a maximum of 480 months (40 years). From 2028 onwards, the benchmark will then be calculated on the basis of the 480 highest total monthly contribution bases. If fewer than 480 contributing months are available for calculation purposes, the benchmark will be calculated on the basis of the available contributing months.

Computing time spent bringing up children

When time spent bringing up children is taken into account for calculation purposes, the relevant number of contributing months in the benchmark period is reduced by a maximum of 36 months for the care of each child, down to minimum of 180 months (15 years). The fact the number of months is reduced "in full" for each child means that the system takes each twin or triplet (for example) fully into account.

Increment points

To determine the value of the pension due to you, the benchmark is multiplied by a set percentage based on the number of months in which you have contributed to your pension.

The percentage is calculated using a system of increment points. For each year of contributions, you receive 1.78 increment points for calculation purposes. For example, this means that if you have been contributing to your statutory pension for over 45 years, the increment points alone can amount to more than 80 per cent on top of the benchmark pension.

Caution

The percentage increment awarded for each year of contributions has been gradually reduced over time, finally reaching the current figure of 1.78 in 2009.

Where pension entitlements were calculated with increments of over 1.78 in the past, the increase above the benchmark was limited to 80 per cent of the benchmark figure. Individuals who had been contributing for over 45 years had their pensions calculated on the basis of an increment of 1.78 per cent per year. Their total additional entitlement was not capped to 80 per cent of the benchmark.

Limiting losses following the 2003 pension reform

In order to limit potential losses as a result of the 2003 reforms introduced to secure the pensions system, a comparison calculation (Vergleichsrechnung) is made according to the law as it applied up to and including 31 December 2003, in addition to the calculation made under the current law. If the calculated value is higher under the comparison calculation than it is under the current law, the total reduction in pension benefit is capped at 9.5 per cent (as of 2022). This means that no pensioner will be left with less than 90.5 per cent of the amount that would have been due to them under the pre-2004 law.

Detailed information (in German only) about how the old-age pension is calculated, including calculation tables, can be found in the document "Pensionsberechnungen im Überblick" (Summary of Pension Calculations), produced by the Pensionsversicherungsanstalt (the name loosely translates as 'Austrian Pension Institute').

Pension accounts

The pension entitlements of all individuals born from 1955 onwards are calculated on the basis of their pension account (Pensionskonto):

Every year, an amount equating to 1.78 of the annual benchmark contribution is paid into the pension account and added to the overall credit in the account. This total credit is then multiplied by an adjustment factor every year.

Bonuses

If you choose to defer claiming your pension until after you reach the standard pension age (which is 60 for women and 65 for men), your pension will be credited with a bonus of 4.2 per cent for each year of deferral, up to a maximum of 12.6 per cent of the total value of your pension.

Deductions

If you choose to claim your pension before you reach the standard pension age (which is60 for women and 65 for men), 4.2 per cent of the value of your pension will be deducted (up to a maximum of 15 per cent) for each 12 months prior to the standard pension age.

If you remain in, or take up, employment above the low income threshold while drawing your pension, supplementary pension contributions will be deducted from your pay.

Further links

"Pensionsberechnung im Überblick" (→ PVA)German text

Certified Translation
Last update: 1 January 2022

Responsible for the content: Federal Ministry of Social Affairs, Health, Care and Consumer Protection