Pension Gap Between Women and Men in Austria Significantly Above OECD Average

While the average gender-specific difference in pension amounts in OECD countries decreased from around 28 percent in 2007 to 22.8 percent in 2024, it was 35.6 percent in Austria last year.

Austria thus has the fourth largest gap among the 35 OECD countries. The difference was only greater recently in Japan (47.3 percent), the United Kingdom (36.7), and the Netherlands (36.3). Behind Austria, Mexico also had a gap of more than 35 percent with 35.4 percent. Switzerland ranked eighth with a gap of 31.2 percent, the USA twelfth with 28.9 percent, Italy thirteenth with 28.6 percent, and Germany fifteenth with a 25.8 percent difference.

Less than ten percent pension differences were recently found in Estonia (5.6), Iceland (7.1), Slovakia (8.4), Czech Republic (9.6), and Slovenia (9.7).

Pensions: Larger Gap in Austria Than in 2007

The largest reductions were in Germany, Greece, and Slovenia, where the gap was reduced by more than 15 percentage points between 2007 and 2024, as well as in Luxembourg, Norway, Portugal, and Turkey by more than 10 percentage points.

In Austria, according to OECD data, the gap even increased: it rose from 33.3 percent in 2007 to the aforementioned 35.6 percent. However, according to OECD data, the difference in Austria was temporarily higher in 2015 at 39 percent than recently. Only in four other countries did the gap also increase.

In many OECD countries, according to the report, significantly declining differences in the labor market between men and women contributed to this reduction in the gender-specific pension gap. However, it takes time for these changes to be fully reflected in less inequality in pensions, according to the OECD.

OECD: Address Employment, Working Hours, and Salaries

The OECD identifies the elimination of gender-specific differences in employment, working hours, and salaries as the most efficient measures to achieve a long-term reduction in the gender pay gap. The unequal share of unpaid caregiving work between men and women, as well as persistent differences in education and career paths, also have significant impacts according to the OECD.

Strong Population Aging Expected

The OECD also pointed out the changing demographics. In the next 25 years, population aging will progress rapidly. At the same time, birth rates in many countries will continue to decline. Previous population projections have "systematically overestimated" the development of the total fertility rate.

Across countries, according to current legislation, the average regular retirement age (for men) with continuous employment starting at age 22 (from the year 2024) will rise to about 66.4 years. For comparison: those who retired in 2024 were, on average, 64.7 years old in the OECD.

The normal retirement age for men will increase in half of the OECD countries if existing laws remain unchanged. The strongest increase is expected in Turkey, from the current 52 to 65 years for men. The lowest future retirement age for men is 62 years in Colombia, Luxembourg, and Slovenia. In Austria, as of now, no adjustments to the statutory retirement age are planned, which is 65 years for men and is currently being gradually raised to 65 years for women (all women born from June 1968 onwards must already work until 65).

(APA/Red)

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