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Too young for retirement?
You may not even have started working yet and are probably thinking about many things, just not your pension. But it's worth making provisions for old age early on. Once you've finished your working life, you'll need to make a living and may also want to afford the odd luxury. To ensure that you not only have time but also money later on, it's smart to plan now (or at least know what you're doing).

The three pillars of the pension system

In Austria, there are three sources for a pension. All those who meet the conditions receive a statutory pension in old age. Those who have made provisions and are a bit lucky will receive one or two additional pensions.

Statutory pension

Everyone who has worked for at least 180 months and has reached retirement age receives the statutory pension. This is currently 65 years for men, as well as for women born after 1968. How high your statutory pension will be depends on how many months of contributions you have and how much you have earned. There is no minimum pension in Austria, but there is an upper limit.

I'll put something back

No matter how much you have earned, the statutory retirement pension is lower. It is therefore a good idea to make your own provisions for old age. The state supports special insurance products for private provision with small premiums and tax benefits. However, you can also invest in funds (a mix of shares) or retirement properties. However, an essential prerequisite for this is that you can save something every month that you can put aside for your old age. In other words, if you invest in education now in order to find a job with a good income, this is also a form of retirement provision!

The additional pension from the company

Some companies pay into company pension funds for their employees. If you work for such a company, you will receive a supplementary pension later on. Companies also pay (since 2003) 1.53 percent of the payroll for each employee into the “Mitarbeitervorsorgekasse”. This money can be paid out under certain conditions - or drawn as a (tax-free) supplementary pension.

Pensions are not just for old people

The majority of pensioners receive an old-age pension. However, people who can no longer work due to a disability or illness also receive a pension. This is called a disability or occupational disability pension.

Do I still get a pension at all?

The media are constantly asking how secure our pensions are and how high they will be one day. The reason for this lies in our pension system. And it works like this: Working people pay into the pension fund - and those who no longer work get the money. This is called a “pay-as-you-go system”. So it's not like a savings account: you pay in and the money sits in the savings account until you withdraw it again. People are getting older and older. That's great, but it also means that they are receiving money from the pension fund for longer and longer. How many people work and pay into the system is also important here. Experts estimate that we will only receive around half of our active income as a retirement pension. In this sense, it is doubly important to start thinking about your own pension provision early on!  

Links to the topic

The platform of the Austrian federal government has compiled information on this topic. Here you can find out, for example, what different types of pension there are. https://www.oesterreich.gv.at/themen/arbeit_und_pension/pension The Chamber of Labor (AK), which represents all employees in Austria, offers a lot of relatively easy-to-understand information on pensions. https://www.arbeiterkammer.at/beratung/arbeitundrecht/pension/index The Pension Insurance Fund (PVA) has been commissioned by the government to administer pensions in Austria. https://www.pensionsversicherung.at/
Pension

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