New Forms of Pension Valorisation for Austria

2004, the development of consumer prices has been the basis of the annual pension adjustment in Austria – an adjustment principle that is only present in five other European countries. The work shows that most countries take several indicators (wages, prices, employment and pension figures, economic growth, etc.) into account in the annual adjustment. In the observation period 2004-2019, the average pension adjustment in Austria lagged behind consumer prices. With the valorisation for 2020, which at +3.0 percent was above the benchmark of +1.8 percent, the pension valorisation developed on average in line with consumer prices. Considering an index composed of price and wage development, as in other EU countries (Finland, Slovenia, etc.), would have meant a higher valorisation in the period under observation.