# WIFO Head Proposes Pension System Reform

October 21, 2026 at 08:58 PM

> Gabriel Felbermayr advocates for a Swedish-style capital-funded model to supplement Austria's current pay-as-you-go pension system.

**Gabriel Felbermayr**, head of the **Austrian Institute of Economic Research** (WIFO), is advocating for an expansion of capital-funded elements within Austria's pension system. Currently, the nation relies on a pay-as-you-go model funded by insurance contributions.

WIFO study author **Thomas Url** suggests that gradually supplementing the current system with mandatory capital funding could increase welfare. Felbermayr points to the Swedish model, which combines statutory pensions with market investments, as a role model.

The shift aims to reduce dependence on domestic economic strength and birth rates. While **VVO**'s **Christian Eltner** notes state pensions rely on local growth, Felbermayr argues for market investment despite the risk-averse nature of typical Austrian households.


#AustriaPensionReform [#WIFO](<https://austriareport.com/hashtag/wifo>) #GabrielFelbermayr #EconomicPolicy #RetirementPlanning

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