Applying For Austrian Pension: A Comprehensive Guide

Austria's pension system is considered generous by international standards, with three parts: state pensions, occupational pensions, and private pensions. To receive an Austrian state pension, you must have paid contributions for at least 180 months and be of retirement age (65 for men and 60 for women, increasing to 65 for women by 2033). You must apply for your pension, and any applications to Austrian Social Security Institutions should be written in German. This article will explain how to apply for an Austrian pension, including eligibility requirements and the application process.

Eligibility requirements

To be eligible for an Austrian state pension, you must meet several requirements. Firstly, you need to have paid contributions for a minimum of 180 months (15 years). The longer you pay into the pension system, the higher your income replacement ratio will be. For example, contributing for 45 years can result in receiving up to 80% of your average lifetime income during retirement, as per the 45-65-80 rule. Secondly, you must reach the retirement age of 65 for men or 60 for women to apply for your pension, although the retirement age for women will gradually increase to 65 by 2033. It is worth noting that early retirement at 62 was an option until 2017.

Additionally, the language requirement is important. As German is the official language in Austria, any correspondence with Austrian Social Security Institutions should be in German. While English may be accepted, it could delay your application as it will need to be translated. Any information and forms you receive from Austria will also be in German.

Furthermore, there are special considerations for victims of Nazi persecution. Individuals who faced political, religious, and/or racial persecution between March 4, 1933, and May 9, 1945, and subsequently emigrated from Austria, may be eligible to retroactively purchase pension credits at a reduced rate. To qualify, they must have faced socio-legal disadvantages due to their emigration, such as being denied the right to contribute further to the Austrian social security system. Those who had not yet contributed to the system at the time of their emigration must meet additional criteria, such as having permanent residence in Austria before March 12, 1938.

Lastly, it is important to understand the different types of pensions in Austria. The pension system consists of three parts: state pensions, occupational pensions, and private pensions. While all employed individuals are obligated to contribute to the state pension plan, occupational and private pensions serve as supplementary retirement plans. Large companies often establish their own pension funds, while smaller companies may join multi-employer pension funds.

Application process

To receive an Austrian state pension, you must have paid contributions for a minimum of 180 months (15 years). The retirement age for men is 65, and 60 for women (gradually increasing to 65 by 2033). You must apply for your pension. Applications should be sent to the Austrian Pension & Retirement Agency, and any letters should be written in German. If you are unable to write in German, your application may be delayed while it is sent to a translation agency.

The amount you receive depends on how long you have paid into your pension. If you pay into your pension for 45 years, you can receive up to 80% of your average lifetime income while retired. This is known as the 45-65-80 rule.

If you are a victim of Nazi persecution, you can apply for a "Retroactive Purchase of Pension Credits" (Nachkauf). This allows you to buy pension credits for your time of emigration at a reduced rate. You can buy up to 180 months of credits. You must submit your application to the Pension Insurance Agency.

If you are a low-income earner, you can apply for guaranteed minimum resources. You will need to submit proof of income and statements of assets to your district administrative authority.

Language requirements

Austria's official language is German. Therefore, any letters sent to Austrian Social Security Institutions should be written in German. If you write in English, your request or application may not be dealt with immediately as it will first need to be sent to a translation agency. Any information and forms you receive from Austria will also be in German. If you cannot understand any documents you receive, you should contact the Embassy. If you call, be prepared to speak German or have someone nearby who can speak and understand German.

Pension credits

To receive an Austrian state pension, you need to have paid contributions for a minimum of 180 months (15 years). The longer you pay, the higher your income replacement ratio is. For example, if you pay into your pension for 45 years, you can receive up to 80% of your average lifetime income while retired. This is referred to as the 45-65-80 rule.

The retirement age for men is 65, and for women, it is 60. However, the retirement age for women will gradually increase until it reaches 65 by 2033. Early retirement at the age of 62 was an option until 2017.

The Austrian pension system is composed of three parts: state pensions, occupational pensions, and private pensions. Within the system, there are two types of pensions: contributory and non-contributory. Employers will subtract a percentage of the gross income as an employee’s contribution, and then add a percentage as an employer’s contribution.

The “Pensionsversicherungsanstalt” offers an E-Service (in German) where you can find your social insurance data sheet and inform yourself of your current pension credits (“Pensionsgutschriften”) on your individual retirement account. You can also request an overview of your already earned insurance periods (“Feststellung der Versicherungszeiten") from the “Pensionsversicherungsanstalt".

If you were born on or after January 1, 1955, your pension is calculated according to the new rules of the General Pensions Act (“Allgemeines Pensionsgesetz”, APG). This means that you accrue pension entitlements according to your annual earnings. For each year, you receive a credit of 1.78% of your pensionable earnings, up to a maximum of €65,100 per year (as of 2015). Your annual pension credits (“Pensionsgutschriften”) as well as your total pension entitlements are recorded on an individual retirement account. The monthly (gross) pension is calculated by dividing your total pension entitlement by 14.

Victims of Nazi persecution between March 4, 1933, and May 9, 1945, who emigrated and faced socio-legal disadvantages can retroactively buy pension credits for their time of emigration (up to March 31, 1959) at a reduced rate. Individuals who had not contributed to the Austrian social security system at the time of their emigration from Austria are eligible to purchase pension credits if they meet certain residency and date-of-birth requirements.

Pension types

The Austrian pension system is composed of three parts: state pensions, occupational pensions, and private pensions. However, private and occupational pensions are secondary to the public pension issued by the state.

State Pensions

To receive an Austrian state pension, a citizen must have paid contributions for at least 180 months (15 years). The retirement age for men is 65, and 60 for women. The longer a citizen pays, the higher their income replacement ratio is. If a worker pays into their pension for 45 years, they can receive up to 80% of their average lifetime income while retired. This is referred to as the 45-65-80 rule. Pension benefits are adjusted yearly by inflation.

Occupational Pensions

Occupational pensions are supplemental pension plans that can be provided by employers to their staff. Large companies set up their own pension funds, while smaller companies can join multi-employer pension funds.

Private Pensions

Austria's public pension system is expensive and is only becoming a larger entity. Contributions made by employees and employers are not enough to cover the retirement bill.

Victim Relief Benefits

Victims of Nazi persecution between March 4, 1933, and May 9, 1945, who emigrated and faced socio-legal disadvantages can retroactively buy pension credits at a reduced rate for the period of their time abroad (up to March 31, 1959). Individuals who had not yet contributed to the Austrian social security system at the time of their emigration from Austria must have been born before or on March 12, 1938, and must have been registered as permanent residents in Austria on that date to be eligible to purchase pension credits retroactively.

Frequently asked questions