Flexible retirement plan: gradual retirement, reducing work and receiving part of the pension
The Austrian government is preparing to implement the largest reform of the pension system since the Schüssel government by introducing the "Teilpension" or "partial pension" system, which will come into effect on January 1, 2026. This amendment aims to make continuing to work after retirement age more attractive while maintaining the financial health of the pension system.
Labor Minister Corina Schumann explained that the aim of partial retirement is to raise the actual retirement age and address labor shortages, in addition to enabling older adults to work longer in a healthy manner. The new system allows eligible employees for retirement – whether through regular retirement, early retirement, or due to hard work – to reduce their working hours by 25%, 50%, or 75%, and receive part of their pension in return.
The Ministry of Social Affairs provided examples to illustrate how the system is applied: A 62-year-old man is eligible for long-term retirement, reduces his working hours by 75%, and receives a partial pension of 1,835 euros after deductions.
A woman aged 61.5 years is eligible for regular retirement, reduces her working time by 50%, and receives €1,150 as a partial pension without deductions.
A 63-year-old man is eligible for retirement through the "corridor system", reducing work by 50% and receiving €1,347 after a 10.2% deduction. A 60-year-old woman working in a strenuous profession reduces her working time by 25%, receiving €632 after a 2.7% deduction. The aim of these measures is to provide employees with greater flexibility when transitioning to retirement while maintaining part of their income by continuing to work part-time.