# Private Pension in Austria for Expats (2026)

> €162.22 state premium, 1.53% Abfertigung, 2.95% pension rise for 2027: the three Austrian pillars, our 20-year model and what expats keep.

Updated: October 12 2026 · By Jules de Bruin · URL: https://www.how-to-austria.com/banking/private-pension

Austria has three pillars: the state **Pensionskonto**, employer schemes led by the **Abfertigung neu** at **1.53%** of gross pay, and private saving. The state **Zukunftsvorsorge** adds **4.25%**, at most **€162.22** in 2026, but locks money for ten years. In our 20-year model it beats a DIY ETF plan only when internal costs stay under **1.6%**.

A state pension needs **180 insurance months**, and EU years count under **Regulation 883/2004**. If you **resign**, your Abfertigung stays at the BV-Kasse until **five years** pass without contributions. Skip products with a lock-in: a **PZV** cannot be cashed out for **ten years**. A plain ETF plan at an Austrian broker moves with you.

## How Does the Austrian Three-Pillar Pension System Work?

Table comparing Austria's three pension pillars in 2026: the statutory Pensionskonto, the employer Abfertigung neu, Pensionskasse and Kollektivversicherung, and private products such as the Zukunftsvorsorge, with who pays, the 2026 figure and what happens when you leave Austria. Sources: APG, BMSVG, EStG via RIS, checked 12 October 2026.

| Pillar | Who pays | 2026 figure | If you leave Austria |
| --- | --- | --- | --- |
| 1. State pension (Pensionskonto) | You and your employer, through social insurance | Pension at **65** after **180 months** | Paid abroad for the years you were insured in Austria |
| 2a. Abfertigung neu | Employer only | **1.53%** of gross pay into a BV-Kasse | Cash only if the employer ended the job; after resigning it waits **5 years** |
| 2b. Pensionskasse / Kollektivversicherung | Employer, sometimes you as well | Voluntary, set by your contract | Transferable; early payout possible but taxed |
| 3. Private (PZV, Bausparen, FLV, ETF) | You | PZV premium **€162.22**, Bausparen **€18** | PZV locked **10 years**; an ETF plan can be sold any day |

Austria splits retirement money into three pillars. The **state pension** is built on a lifelong **Pensionskonto** and pays from **65**. The **employer pillar** is the compulsory **Abfertigung neu**, worth **1.53%** of gross pay, plus optional company pensions. The **private pillar** is anything you buy yourself. Only two private products earn a state premium: the **Zukunftsvorsorge** and **Bausparen**.

For an expat the right column matters more than the middle one. Every pillar treats an early exit differently. The state pillar pays you abroad for the Austrian years. The Abfertigung depends on **who ended the job**. The **Zukunftsvorsorge** cannot be cashed out in the first **ten years** at all. Decide how long you are staying before you sign anything with a lock-in.

## How Much State Pension Will You Get from the Pensionskonto?

Table of the key Austrian state pension rules for 2026 and 2027: retirement age, minimum insurance period, how the monthly amount is computed, early and late retirement adjustments, and the 2027 pension increase. Sources: §§ 4 and 5 APG and § 823 ASVG via RIS, read 12 October 2026.

| Rule | Figure | Legal basis |
| --- | --- | --- |
| Regular pension age | **65**; for women rising from 60 to 65 by **2033** | § 4 APG |
| Minimum insurance | **180 months**, at least **84** from work | § 4 APG |
| Monthly gross pension | Total account credit **divided by 14** | § 5 APG |
| Retiring early | Minus **0.35%** per month (Korridorpension **0.425%**) | § 5 APG |
| Retiring late | Plus **0.425%** per month, at most **15.3%** | § 5 APG |
| 2027 increase | **2.95%** up to **€6,930** a month, flat **€204.44** above | § 823 ASVG, BGBl. I Nr. 62/2026 |

Your state pension is whatever your **Pensionskonto** holds, divided by **14**, because Austria pays it fourteen times a year. You qualify at **65** with **180 insurance months**, of which at least **84** must come from work ([§ 4 APG](https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=20003831)). For **2027** pensions rise **2.95%** up to **€6,930** a month and by a flat **€204.44** above that ([§ 823 ASVG](https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10008147)).

Expats rarely reach 180 Austrian months, and they do not have to. Under **Regulation (EC) No 883/2004**, months in any **EU** or **EEA** country or **Switzerland** count towards the threshold. Each country then pays its own share for the years you worked there. Seven years in Vienna after twelve in Germany therefore produce two pensions, both paid to wherever you retire.

Check your account once a year. The statement on [neuespensionskonto.at](https://www.neuespensionskonto.at/) lists every insured year and a projection. Look for gaps from **parental leave**, **civil service** and periods abroad, and correct them with documents. Subtract that projection from the budget you want, and the difference is the gap pillars two and three must fill.

## What Happens to Your Abfertigung Neu When You Change Jobs or Leave?

Table of what happens to an Austrian Abfertigung neu balance in each exit scenario, including resignation, termination by the employer, fewer than 36 contribution months and moving abroad, with the tax due. Sources: § 14 BMSVG (version in force from 1 January 2026) and § 67 Abs. 3 EStG via RIS; six-month choice window from the Sozialministerium.

| How the job ended | Cash payout? | Tax | What else you can do |
| --- | --- | --- | --- |
| Employer terminated, 36+ contribution months | **Yes**, within **6 months** of the job ending | **6%** flat wage tax | Leave it invested, or transfer it **tax free** to a Pensionskasse or pension insurer |
| You resigned | **No** | None while it waits | Balance stays invested; payout at pension or after **5 years** without contributions |
| Fewer than 36 contribution months in total | **No** | None while it waits | Months from all employers are added together |
| Dismissal for cause | **No** | None while it waits | Same waiting rules as a resignation |
| You start drawing a pension | **Yes** | **6%** as a lump sum, **0%** as an annuity via a transfer | Applies to every balance you hold |

Your employer pays **1.53%** of your gross pay every month into a **Betriebliche Vorsorgekasse**, and the money belongs to you. Whether you can take it as cash depends on how the job ended. Under [§ 14 BMSVG](https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=20002088) a **resignation** blocks the payout. So does having fewer than **36 contribution months**. A permitted payout is taxed at **6%** (**§ 67 Abs. 3 EStG**).

This is the trap for expats. Most people leaving Austria resign, and a resignation means the balance stays at the Kasse. It becomes payable when you draw a pension or once **five years** have passed with no new Austrian contributions. Note your **BV-Kasse** and contract number before you go, keep an address on file, and diarise the five-year date. Nobody will remind you.

Your employer chooses the Kasse through a works agreement (**§ 9 BMSVG**); you do not. There are **seven**, per the **WKO** Vorsorgeverband list of 20 March 2026: **Allianz Vorsorgekasse**, **APK Vorsorgekasse**, **BONUS Vorsorgekasse**, **BUAK** for construction, **Niederösterreichische Vorsorgekasse**, **Valida Plus** and **VBV-Vorsorgekasse**. Administration costs ran at **1.5% to 2.9%** of contributions historically, per an academic analysis of their annual reports, and the Kassen rarely advertise them.

### Self-employed? You pay into a Kasse too

The same law covers the self-employed as **Selbständigenvorsorge**: **1.53%** of the contribution basis goes into a Vorsorgekasse (§ 52 BMSVG). With no employer pension behind you, the private pillar carries more weight.

## Should You Accept a Pensionskasse or Kollektivversicherung Offer?

Table comparing the two Austrian voluntary employer pension vehicles, the Pensionskasse and the betriebliche Kollektivversicherung (BKV), on guarantee, tax on employer contributions, employee contributions and what happens on a job change. Sources: WKO, ÖBV and Fachliteratur via the research corpus, as of August 2026.

| Feature | Pensionskasse | Betriebliche Kollektivversicherung |
| --- | --- | --- |
| Run by | A Pensionskasse supervised by the FMA | An insurer, as group life insurance |
| Guarantee | No guaranteed amount; depends on investment results | A **guaranteed** basic pension |
| Employer contributions | Free of **wage tax** and social insurance when paid in | Up to **10%** of gross payroll, no wage tax, no payroll charges |
| Your own contributions | Possible if the plan allows | Tax-supported under **§ 108a EStG** |
| Job change | Transfer to the new employer's fund | Entitlement kept; continue privately without the tax benefit |
| Payout | Taxed when paid out | Taxed when paid out |

Take it. An employer contribution to a **Pensionskasse** or a **betriebliche Kollektivversicherung** arrives without **wage tax** or social insurance deducted, so every euro the employer spends reaches the plan. The tax comes later, at payout. The two differ on risk. A Pensionskasse invests without a guarantee. A Kollektivversicherung promises a basic pension and survives the employer’s insolvency.

Neither is offered by default, so ask. Many Austrian employers treat a company pension as a negotiable benefit, and it is cheaper for them than the same amount as salary. Leaving the job does not wipe out the entitlement: a Pensionskasse balance moves to the next employer’s fund, and on a move out of the EU an early payout is possible after the waiting period, but it is taxed. Pensionskassen are supervised by the [FMA](https://www.fma.gv.at/pensionskassen/).

## Which Private Pension Products Get State Support?

Table comparing Austrian private retirement products in 2026: the prämienbegünstigte Zukunftsvorsorge (PZV), Bausparen, unit-linked life insurance (FLV), classic private pension insurance and an ETF savings plan, on state support, lock-in, tax and early-exit cost. Sources: §§ 108, 108g, 108i EStG via RIS; WKO 1 March 2026; nettopolizze.at February 2026; broker-test.at March 2026.

| Product | State support 2026 | Lock-in | Tax | Early exit |
| --- | --- | --- | --- | --- |
| Zukunftsvorsorge (PZV) | **4.25%** on up to **€3,817.04** = **€162.22** | **10 years**, irrevocable | No KESt while saving; annuity tax free | Cash after 10 years: **half the premiums** back plus 27.5% on gains |
| Bausparen | **1.5%** on up to **€1,200** = **€18** | **6 years** | Premium tax free; 25% KESt on interest | Premiums reclaimed unless used for housing |
| Unit-linked life insurance (FLV) | None | Minimum term per contract | **4%** insurance tax on payments, gains KESt free | Extra tax to **11%** before the minimum term |
| Classic private pension insurance | None | Contract term | **4%** insurance tax; KESt-free returns | Surrender value below payments in early years |
| ETF savings plan | None | None | **27.5%** KESt on gains | None; sell any trading day |

The **prämienbegünstigte Zukunftsvorsorge** pays **4.25%** on up to **€3,817.04** a year in 2026, so at most **€162.22**. The rate is **2.75%** plus the Bausparen rate of **1.5%**. The cap is fixed in [§ 108g EStG](https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10004570) as **1.53%** of **36 times** the monthly social insurance ceiling of **€6,930**. In return you waive repayment for at least **ten years**.

The 2027 cap moves with that ceiling. Payroll firm **Forvis Mazars** projected it at **€7,410** a month in September 2026, which would lift the eligible contribution to about **€4,081.43**. That figure is our derivation from a projection, not an official value, and the 2027 rate depends on the Bausparen rate the **BMF** sets by **30 November**. Treat both as unverified until then.

After ten years, **§ 108i EStG** gives you four exits. You can move to another provider, buy a private pension annuity, transfer into a Pensionskasse or group insurance you already belong to, or take cash. Cash is the expensive option: half of the premiums are reclaimed and the gains are taxed at **27.5%**. Providers include **UNIQA**, **ÖBV**, **Wiener Städtische** and **Generali**. The premium is identical everywhere, so compare the internal costs, which providers do not publish in one format.

**Bausparen** is a different animal. Under **§ 108 EStG** the premium is set each year between **1.5% and 4%** from federal bond yields, and it has sat at the **1.5%** floor, worth **€18** on the **€1,200** maximum. The 1.5% is the premium, not the interest rate. The real value is the right to a **Bauspardarlehen** capped at **6%**.

## Do PZV, Bausparen or a Robo Beat a DIY ETF Plan Over 20 Years?

Our model, part 1, the same inputs as our asset managers guide: €50,000 invested once, 5% gross return a year, costs deducted from the return each year (DIY ETF 0.2%; robo 0.99% fee plus 0.2% fund cost; Savity tier 0.79% plus 0.2%), compounded annually for 20 years, before tax. A model, not a forecast.

| €50,000 lump sum | Annual cost | Value after 20 years |
| --- | --- | --- |
| DIY ETF plan | 0.2% | **€127,700** |
| Robo at 0.79% (Savity tier for this size) | 0.99% | **€109,800** |
| Robo at 0.99% | 1.19% | **€105,600** |
| Zukunftsvorsorge or Bausparen | n/a | Not possible: single premiums earn no PZV premium, Bausparen caps at €1,200 a year |

Our model, part 2: €3,817.04 paid in every year for 20 years (€76,341 in total), 5% gross return unless stated, annual costs deducted from the return. ETF and robo: 27.5% KESt charged once on the total gain at the end, which slightly flatters them because real accumulating funds are taxed every year. PZV: the 4.25% premium (€162.22) added each year, annuity payout tax free. Cash-out row: half the premiums reclaimed and 27.5% on gains under § 108g Abs. 5 EStG. Calculated 12 October 2026.

| €3,817.04 a year for 20 years | Assumption | Net value |
| --- | --- | --- |
| Zukunftsvorsorge, taken as annuity | 5% gross, 1.5% internal cost | **€116,471** |
| DIY ETF plan | 5% gross, 0.2% cost | **€114,889** |
| Zukunftsvorsorge, taken as annuity | 5% gross, 2.0% internal cost | **€110,132** |
| Robo-advisor | 5% gross, 1.19% cost | **€104,873** |
| Zukunftsvorsorge, cashed out | 5% gross, 1.5% cost | **€104,705** |
| Zukunftsvorsorge, guarantee-weighted | 3% gross, 1.5% cost | **€93,395** |

Our model, part 3, one Bausparen contract against an ETF plan over its 6-year term: €1,200 a year, Bausparen at an assumed 1.0% tariff rate with 25% KESt on interest, €18 premium a year and a €100 closing fee (1% of a €10,000 contract sum; tariff rate and fee are unverified and vary by Bausparkasse); ETF at 5% gross, 0.2% cost and 27.5% KESt at the end.

| €1,200 a year for 6 years (€7,200 paid) | Net value | Gain |
| --- | --- | --- |
| Bausparen | **€7,402** | €202 |
| DIY ETF plan | **€8,151** | €951 |

The answer turns on two numbers: internal costs and the return the product can actually earn. If a **Zukunftsvorsorge** earned the same **5%** gross as an ETF, it would win at **1.5%** internal costs, **€116,471** against **€114,889**, because the premium and the tax-free annuity outweigh the fee. Our break-even is **1.62%**: above that internal cost, the DIY ETF plan wins.

A PZV cannot really earn the ETF’s return. It must guarantee your capital, and for contracts since August 2013 the equity share is limited to **15% to 60%** for savers under 50. At a **3%** gross return the same contributions reach only **€93,395**. Cashing out instead of taking the annuity costs a further **€11,766**. The PZV suits people who value the guarantee and will annuitise, not people chasing return.

The robo result agrees with our [asset managers guide](/banking/asset-managers): on a **€50,000** lump sum a **0.99%** robo leaves about **€22,000** less after 20 years than a DIY plan, and **Savity**’s **0.79%** tier about **€18,000**. **Bausparen** loses to the ETF by about **€750** over one six-year term. You buy it for the loan right, not the return.

## Which Pension Option Fits Your Situation?

Decision table matching Austrian pension options to reader situations in 2026, from expats leaving within three years to residents aged 50 and over, with the reason and the product to avoid. Based on the statutes and the 20-year model above.

| Your situation | Best fit | Why | Avoid |
| --- | --- | --- | --- |
| Leaving Austria within 3 years | ETF plan at an Austrian broker | No lock-in, KESt handled, sellable any day | PZV: **10-year** lock |
| Resigning to move abroad | Leave the Abfertigung invested | Payout after **5 years** without contributions | Assuming you can cash it out on departure |
| Employer offers a company pension | Pensionskasse or Kollektivversicherung | Employer money arrives without wage tax | Turning it down for salary |
| Self-employed | Selbständigenvorsorge plus PZV or ETF | **1.53%** is compulsory, the rest is up to you | Relying on the state pension alone |
| Aged 50 or over, wants a guarantee | Zukunftsvorsorge | Locks until the state pension, tax-free annuity | High-cost gross FLV policies |
| Buying a home within 5 to 10 years | Bausparen | Loan right with a **6%** rate ceiling | Bausparen as pure saving |
| Wants it done for them | Austrian robo that withholds KESt | No E1kv, automatic rebalancing | German robos that leave you an E1kv |

Start with how long you will stay, then with who pays. Anyone likely to leave inside ten years should avoid the **Zukunftsvorsorge** and keep private savings in a plain ETF plan at an Austrian broker such as **flatex** or **DADAT**, which withhold **KESt** for you. Anyone with an employer offer should take the employer money first, because it arrives without wage tax.

The subsidised products make sense in narrow cases. The **Zukunftsvorsorge** suits a saver aged **50** or over who wants a guarantee and will take the annuity: from 50 the lock-in runs until the state pension instead of a fixed ten years. **Bausparen** suits a household with a concrete property plan. For everything else, costs decide, as the model above shows.

## Which Rules Protect Your Retirement Savings?

The premiums and lock-ins are set in the **EStG**, not in your contract. That means a provider cannot change the **€162.22** maximum or the clawback rules. Pensionskassen and insurers are supervised by the **FMA**. The block below names the statute, the regulator, a free comparison tool and the current figure.

| The rules behind this page | EStG §§ 108g-i |
| --- | --- |
| Law | [EStG 1988, §§ 108g-i on state-subsidised retirement saving, with the Bausparkassengesetz for building society plans](https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10004570) |
| Regulator | [FMA, pension fund supervision](https://www.fma.gv.at/pensionskassen/) |
| Free tool | [AK Bankenrechner, building society and pension modules](https://www.bankenrechner.at/) |
| Your right | The state tops up subsidised retirement saving (PZV) by 4.25% on up to €3,817.04 a year, worth at most €162.22. A Bausparen plan earns 1.5% on up to €1,200, worth at most €18. Leave either early and the bonus is clawed back. |
| Applies since | PZV rate set 1 March 2026; Bauspar rate set by BMF regulation, December 2025 |

For the Abfertigung, the rules sit in the [BMSVG](https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=20002088). You have **six months** after the job ends to choose between payout, reinvestment and transfer; without a choice the balance stays invested. A dispute about an employer pension goes first to the works council or the **Arbeiterkammer**, which advises members free of charge.

## Related Guides

[Asset Managers and Robo-Advisors: Fund costs, Austrian robos and how funds are taxed.](/banking/asset-managers)

[Savings Accounts: Where to keep the emergency fund before you invest.](/banking/savings-accounts)

[Mortgages: How a Bauspardarlehen fits next to a bank loan.](/banking/mortgages)

[Income Tax: The tax return where pension and investment income meet.](/taxes/income-tax)

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## Frequently Asked Questions

### Can I cash out my Abfertigung neu when I leave Austria?

Only if your **employer ended the job** and you have **36 contribution months**. If you **resign yourself**, **§ 14 BMSVG** blocks the payout: the balance stays invested at the **BV-Kasse** until you draw a pension or until **five years** pass with no new contributions. A permitted cash payout is taxed at **6%**; a transfer to a **Pensionskasse** or a pension insurer is **tax free**.

### How much is the Zukunftsvorsorge state premium in 2026?

**4.25%** on contributions of up to **€3,817.04** a year, so at most **€162.22**. The rate is **2.75%** plus the Bausparen rate of **1.5%**. The cap is **1.53% of 36 times** the monthly social insurance ceiling of **€6,930** (**§ 108g EStG**). Single premiums do not qualify.

### What happens if I cancel a Zukunftsvorsorge early?

In the first **ten years** you **cannot cash out** at all, because the contract requires an irrevocable waiver of repayment for at least ten years. You can stop paying or move the balance to another provider. After ten years a cash payout is allowed, but **half of the premiums** are reclaimed and the gains are taxed at **27.5%** (**§ 108g Abs. 5 EStG**).

### Do my working years in another EU country count towards an Austrian pension?

Yes. Under **Regulation (EC) No 883/2004**, insurance periods from other **EU** and **EEA** countries and **Switzerland** count towards the **180 insurance months** Austria requires (**§ 4 APG**). Each country then pays a pension for the years you spent there. Periods outside the EU only count where Austria has a **bilateral agreement**.

### How much will Austrian pensions rise in 2027?

By **2.95%** for total pension income of up to **€6,930** a month, and by a flat **€204.44** above that. The rule is **§ 823 ASVG**, inserted by **BGBl. I Nr. 62/2026**. Minimum-pension recipients get **3.3%** through the **Ausgleichszulage** reference rates.

### Can I choose my own BV-Kasse?

No. Your **employer picks** the Betriebliche Vorsorgekasse for the whole company. There are **seven**: **Allianz**, **APK**, **BONUS**, **BUAK** (construction), **Niederösterreichische Vorsorgekasse**, **Valida Plus** and **VBV**. After **three contribution-free years** you may move an old balance to the Kasse your current employer pays into.

### Is a unit-linked life insurance (FLV) better than an ETF savings plan?

Only in a narrow case. An **FLV** pays **4% insurance tax** on every contribution but **no KESt** on gains. It comes out ahead only with a commission-free **net policy**, a term of **15 years or more** and an equity fund. Gross policies with effective costs of up to **4.49%** a year lose in almost every scenario.

### Does Bausparen still make sense in 2026?

As a savings product, barely: the premium is **1.5%** on at most **€1,200** a year, so **€18**, and a **closing fee** can absorb several years of it. It makes sense if you plan to **buy or renovate** within **5 to 10 years**, because it gives you a right to a **Bauspardarlehen** with a **6% rate ceiling**.

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Source: https://www.how-to-austria.com/banking/private-pension
Last updated: Updated: October 12 2026
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