OeNB Governor urges wage hikes to fund a capital-based pension pillar

Martin Kocher, governor of the OeNB, outlined several long-term challenges facing Austria, including an aging population, higher interest burdens and the need for greater investment in security, research and education. He advocated for a mixed pension model, proposing that a portion of wage increases agreed in collective contracts be directed into a funded pension scheme. Kocher said this approach could reduce the system’s demographic vulnerability and ease future fiscal pressure.

He also stressed the importance of transparent, expert-driven reforms and noted that the central bank will continue to present concrete policy concepts on such issues. The governor reiterated the bank’s commitment to price stability while acknowledging the turbulent monetary environment caused by geopolitical tensions.