“Structural reforms alone will not be enough” for the Austrian pensions system, as a qualitative survey undertaken by Triple M on behalf of Valida Vorsorge Management found respondents favoured a shift towards the second pillar.

The study involving focus groups was undertaken earlier this year and included employees, employers, managing directors and HR managers of different ages and from a range of industries.

Against the backdrop of the government's recently announced reform measures, Valida said that structural reforms should be accompanied by greater transparency, better information and a broader shift in public attitudes.

Although awareness of occupational pensions and trust in the pension system “remain insufficient”, respondents were critical of the heavy reliance on the first pillar and the relatively underdeveloped occupational pension system.

Highlighting the lack of knowledge about the second pillar, many participants still primarily associated occupational pensions with Austria's former severance pay system. The ‘new severance pay’ (Abfertigung Neu) was generally not regarded as part of retirement provision because many people choose to receive it as a lump-sum payment.

In addition, most respondents were unclear about the actual level of contributions and the impact these contributions have on retirement income. The survey also found respondents expected to receive around 50 per cent of their net salary in retirement, reflecting low confidence in the future adequacy of the pension system.

Overall, however, occupational pensions were viewed as a valuable benefit. Respondents said they would like higher ongoing occupational pension contributions to boost their retirement income.

Valida Vorsorge Management CEO, Martin Sardelic, said: "The results confirm what we see every day: awareness of the problem exists, but knowledge about occupational pensions remains very limited. If we want to stabilise the system over the long term, we must significantly strengthen the second pillar. Greater transparency, and with it greater trust in the system and in capital market investments, is essential."

In addition, Valida Vorsorge Management executive board member, Philipp Mayer, said: "We see a contradiction. On the one hand, awareness is growing that the existing system alone will not be sufficient. On the other hand, trust in supplementary models is still lacking. This is precisely where clear framework conditions and targeted incentives are needed so that occupational pensions can realise their full potential."

He added: "If, as a result of the approved reforms, people will in future have to decide for themselves whether to invest their second-pillar savings differently and convert part of them into a monthly pension, we urgently need to invest in education and information."

Looking ahead, respondents expected a shift towards a more balanced multi-pillar model in which occupational pensions play a much larger role. They also believe individual responsibility for retirement saving should be strengthened, citing countries such as Denmark as examples.

Respondents said the ideal occupational pension system should be simple, secure and flexible. There was a clear preference for greater choice, including over benefit payments, investment options and voluntary additional contributions.

They also agreed that occupational pensions should make a meaningful contribution to overall retirement income, requiring more money to flow through the second pillar.

In addition, the focus groups found clear generational differences. Younger respondents were more open to capital markets and more likely to highlight structural challenges such as declining birth rates and later entry into the labour market.

Older respondents, however, focused more on fairness, planning certainty and the adequacy of pension benefits.

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