Higher Retirement Age for Women: These Are the Consequences for the Labor Market

Last year, the employment of women aged 60 increased by almost 12,000 people compared to 2023, writes the Public Employment Service (AMS) in a recent special analysis. At the same time, unemployment in this age group was on average around 2,100 people higher in 2024 than in 2023.

"The first increase in the retirement age for women unfortunately comes in the middle of the recession. Nevertheless, of the approximately 14,000 additional 60-year-old women in the Austrian labor market, a good 85 percent are employed," commented AMS head Johannes Kopf on the development. Statistically, 15 percent or slightly more than every seventh "additional" woman was unemployed in 2024. Support is therefore also needed for those older women who do not have a job or lose theirs shortly before retirement, said Kopf.

The AMS head also referred to the employment package for older people planned by the new government. The "Working in Old Age" model, which is still to be worked out in detail, is to include, among other things, an exemption from social security contributions for employees, and the additional income of employees is to be taxed at only 25 percent. The measure is to come into force on January 1, 2026.

Retirement age for women has been gradually aligned with men since 2024

With the regulation made more than 30 years ago and specified in 2023, the standard retirement age for women has been gradually aligned with that of men since last year. In 2024, female insured persons born between January 1 and June 30, 1964, were affected for the first time. They can only retire at the age of 60.5. For those born between July 1 and December 31, 1964, the standard retirement age increased to 61 years. By 2033, the age limit will gradually rise to 65 years.

(APA/Red)

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