According to the Organization for Economic Co-Operation and Development (OECD), Austria's pension system is categorized as targeted.
If a worker pays into their pension for 45 years then they can receive up to 80% of their average lifetime income while retired.
When the citizen reaches retirement age (65 for men and 60 for women) they can then apply to receive their state pension.
In 1970, 9.9% of the countries' gross domestic product (GDP) was attributed to public pension expenditures and that amount increased to about 14.5% in the year 2000.
[7] Because of these increased costs, Austria imposed reforms that mainly discouraged early retirement by withholding full pension amounts until the receiver reached age 65.
Other problems that Austria faces with their pension system is the fact that people are living longer, while at the same time fertility rates are going down.
As a result, the ratio of elderly people to those working and contributing to the pension fund will more than double within the next 30 years.