New Law Effective in 2027
This is intended to make working worthwhile for retirees
The federal government plans to offer financial benefits through the “active retirement” program for anyone who wants to continue working in old age. The “Krone” has reviewed the details. Meanwhile, pensioner representatives are laying out their demands and bringing an “AI tax” into the discussion.
The federal government aims to kill two birds with one stone with the “Active Pension,” which is set to be approved by the Council of Ministers on Wednesday. On the one hand, the economy would benefit from skilled workers remaining available longer, and on the other hand, the hope is that working longer would actually pay off for retirees.
The proposed legislation, which is set to be sent for review this week, provides for tax-free additional earnings of 15,000 euros per year for retirees and those in the workforce who continue working beyond their retirement age. “Those who earn additional income in retirement will have significantly more take-home pay in the future. This is an important signal that we want to support employment in old age,” said Federal Chancellor Christian Stocker, who also views the “active pension” as a matter of fairness.
However, the Senior Citizens’ Council does not consider the rule requiring women to have 36.5 years of insurance coverage to benefit from the tax exemption to be quite as fair: “The Austrian Senior Citizens’ Council demands that 30 years of insurance coverage be sufficient for women!”
In addition to tax relief, however, certain contributions are also to be eliminated; for example, employee contributions to pension insurance will be waived for working people of standard retirement age—regardless of whether they are already receiving a pension or not, and whether they are employees or self-employed. The law is expected to be passed by Parliament before the summer and take effect in early 2027. With this relief measure, the federal government is forgoing approximately 470 million euros annually. In return, officials hope for positive budgetary effects as more people voluntarily choose to work longer.
Pensioners’ Association Launches Nationwide Petition Campaign
In Austria, 32 percent of female pensioners living alone are at risk of poverty, compared to 16 percent of male pensioners living alone. This is also one reason why the Pensioners’ Association (PVÖ) is now launching a nationwide petition campaign to fight for a full inflation adjustment of pensions. “The PVÖ is submitting identical motions in all nine state parliaments in time for the passage of the dual budget,” the Pensioners’ Association is pressing for a “fair pension policy that fully covers real inflation.”
Those who have worked and paid into the system for decades should not have to foot the bill in old age simply because the super-rich, corporations, banks, and AI profits are being spared.
Birgit Gerstorfer, Präsidentin des Pensionistenverbandes Österreich
Instead of discussing pension cuts, politicians should, according to senior citizens’ representatives, consider higher taxes on large fortunes or even an “AI tax.” This “AI tax” should apply to extraordinary profits generated through the use of artificial intelligence.
Free train travel for seniors
Another relief initiative is also launching on Wednesday. Starting April 15, 2026, approximately 100,000 low-income seniors will receive two free train rides within Austria upon applying for the free “Vorteilscard Senior Frei.” Eligibility requires being at least 65 years old and qualifying for a compensatory or supplementary allowance. The “Vorteilscard Senior Frei” must be applied for in person at an ÖBB ticket counter. “Visiting grandchildren, meeting friends, or taking a trip to another region in Austria should not be a matter of financial means, but should be possible for all seniors in our country,” agree Mobility Minister Peter Hanke and Social Affairs Minister Korinna Schumann.
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