Austrian pension funds reported a loss of 0.89 per cent in the second quarter of 2025, figures from the Association of Austrian Occupational Pension and Provision Funds revealed.

The association described geopolitical tensions and volatility in financial markets as a “difficult environment”.

“The geopolitical and economic environment once again proved to be extremely challenging for the financial markets in the second quarter of 2025,” it stated.

It cited further protectionist measures by the US, ongoing uncertainty surrounding the Chinese property market, and escalating geopolitical tensions in the Middle East as key reasons for the high volatility in international financial markets.

However, the association cautioned that having a long-term outlook is “crucial”.
Association of Austrian Occupational Pension and Provision Funds chairman, Andreas Zakostelsky, said 2025 has so far been a “difficult year” in the financial markets.

“Domestic pension funds cannot escape this either, even if their highly professional investment management is making a special effort," Zakostelsky said.

He stressed that pension provision should be considered over a “long-term perspective” rather than one or two financial quarters.

He added: “Our task is to generate stable returns over the long term and this is exactly what the pension funds have successfully done over decades with a long-term performance of 5.03 per cent per year."

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