Better Finance - Country Case: Austria

With some 90 percent of the average retirement income received from a public pension entitlement, the Austrian system of old-age provision is very concentrated on the first pillar. Occupational pensions are primarily offered through pension funds and insurance companies. Direct commitments are an alternative vehicle, but their usage stagnates. The opportunity to offer defined contribution plans through pension funds and insurance contracts has certainly boosted the spread of occupational pensions in Austria. While occupational pensions have become more popular over time, low interest rates and high liquidity preference dampened demand for individual life insurance contracts. This study will collect data on the performance of pension funds and life insurance contracts in real terms.