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LIVING IN AUSTRIA

How will Austria’s new retirement rules affect people in the country?

Austria is changing the retirement age for women, while regulations and benefits are also being adjusted starting in 2024. Here's what this means for you.

Published: 15 January 2024 12:43 CET
Updated: 15 February 2024 17:03 CET
How will Austria's new retirement rules affect people in the country?
People who intend to retire in Germany have a few extra incentives to consider public rather than private insurance. Photo: Bruno/Pixabay.

Starting in 2024, the statutory retirement age for women in Austria will slowly rise until it reaches that of men. This change came after the country’s Constitutional Court ruled that the different retirement ages were contrary to equality in the country.

The key dates were specified last year, and implementation will begin this year. The statutory retirement age for women will now rise from 60 to 65 in half-yearly increments until 2033. 

This now affects women born between January 1st and June 30th, 1964, for the first time. They can only retire at the age of 60.5. Women born between July 1st and December 31st, 1964, will then have a standard retirement age of 61. 

READ ALSO: How Austria plans to raise the retirement age for women

This continues until women born after June 30th, 1968, have a standard retirement age of 65, as is the case for men.

More time in retirement

Despite the later retirement age, the increase in life expectancy means that women will spend more years in retirement, according to calculations by Agenda Austria, a liberal think tank in Vienna. 

If the system remains the same, with no other major pension reforms, women will spend 28.9 years of their lives in retirement in 2060 instead of 26 years as of 2023. Men currently spend 20.5 years in retirement, which should rise to 25.3 in 2026 as life expectancy increases. 

READ ALSO: EXPLAINED: Everything you need to know about retiring in Austria

‘The government has failed’

The government’s pension reform has been heavily criticised in Austria. “The idea behind the 1992 pension reform was that women had to be on an equal footing with men before the retirement age was raised. But we are miles away from that,” Klaudia Frieben (SPÖ), Chairwoman of the Austrian Women’s Ring, told Die Presse. 

Currently, women receive, on average, 40.55 percent less pension money compared to men, the report states. This is partly due to unequal career choices (and opportunities) – as women are underrepresented in sectors where salaries are higher, but also because women tend to interrupt their careers much more frequently due to childcare or caring for relatives. 

READ ALSO: Five things you need to know about the Austrian pension system

Another issue is that women tend to have a more significant gap between their last employment and retirement age, affecting their pension later. 

According to a study by the Chamber of Labour, not even half (48 percent) of women retired directly from active employment in 2019. They were unemployed or on sick leave, for example. This gap could grow further with the increase in the retirement age, warn employee representatives. 

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LIVING IN AUSTRIA

‘Haushaltsversicherung’: How does Austria’s home insurance work?

'Haushaltsversicherung' is one of Austria's most popular types of insurance. It is not mandatory, but it is certainly worth evaluating, especially as it comes with many possible add-ons.

Published: 2 May 2024 15:22 CEST
'Haushaltsversicherung': How does Austria's home insurance work?

Austrians are certainly obsessed with insurance coverage, and one of the most popular and common ones is known as the “Haushaltsversicherung”—if you don’t have it already, you have certainly heard of it. Here’s what you need to know about household insurance.

Firstly, this insurance covers damages to “all movable objects within your own four walls,” as Austria’s Chamber of Labour (AK) explains. This includes furniture, carpets, and electrical appliances. It would also cover damages caused by fire, storms, water, burglary, and glass breakage. 

Certain types of insurance, such as private liability insurance or mandatory dog liability insurance, are almost always combined with household insurance—another reason why the Haushaltsversicherung is so popular in Austria.

READ ALSO: What kind of insurance do I need to have in Austria?

However, there are enormous differences in premiums and benefits, so experts suggest you check precisely what you need before taking out insurance. The AK also says you should talk to an insurance advisor to learn more about your specific case and needs, particularly if you have any valuables in your home. 

Additionally, they said: “It makes sense to check your policy every few years to ensure that you are properly insured. This guarantees that the sums insured and the risks included are up-to-date and sufficient”.

What should I keep an eye on when reviewing policies?

Of course, different companies have their own offers, and they are often highly customisable to fit your apartment and lifestyle—some things you need to be aware of, though.

Certain policies are tied to the size of your apartment, while others will have a lump sum regardless of the size of your place. Policies also usually differ depending on whether you live in an apartment or a house. 

While most insurance will cover glass breakage (such as when a hail storm breaks your window, for example), some might have it as an add-on (wahlweise mit Glasbruch). 

You may also add other types of insurance to your household insurance, the most common being mandatory dog liability insurance (Hunde-Haftpflicht), legal insurance (Straf-Rechtsschutz), and sports insurance.

READ ALSO: Should I take out insurance before skiing in Austria?

It’s worth it to read each policy, but you should know some common clauses beforehand. For example, insurance often won’t cover burglary costs if your house has not been properly secured and locked. This might seem obvious, but since door knobs don’t open from the outside without the key, people often leave their homes, especially for short errands, and don’t lock the doors all the way. Insurance and safety experts recommend you get in the habit of locking your home doors.

It’s also important to check if your insurance will pay you “Neuwert” or “Zeitwert” in case of damage. 

A Neuwert means the insurance will pay for a replacement object, regardless of how old the stolen or broken one was. However, many insurance policies still contain the so-called “Zeitwert”, something like “current value”, so you wouldn’t receive an amount that could pay for a new product. Instead, a loss of value of around 10 percent per year could be expected for most objects.

What should I do if there is damage to my home?

If you see any damage to your home from burglary, accident or other types, you need to notify your insurer immediately and report the damage you have suffered. 

The insurance conditions usually stipulate a maximum period of three days for reporting a claim in property insurance. The Chamber of Labour also recommends that you send a written notification of the claim (preferably by registered mail, they add).

“Make a list of all items that have been destroyed or lost and enclose it with your report to both the insurer and the security authorities”, they said. And, of course, in the event of fire burglary or robbery, always inform the fire department or police authorities.

READ ALSO: EXPLAINED: The Austrian insurance for if you get sued – or want to sue someone

How long does the insurance last, and how much does it cost?

The insurance term is usually specified in the counteract. In general, though, you can terminate it after the third year with one month’s notice if the contract has not already expired.

If you move house or move abroad, you can terminate your household insurance contract. You can cancel the insurance the day before the move begins (preferably by registered letter).

If you do not exercise your right of termination, the insurance will remain valid during the move and in the new home.

Regarding prices, they can be as low as a few euros a month (such as insurance specifically tailored to students living in shared flats) to several hundred a month if you have a large place with plenty of valuables or include several add-ons. 

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