Austrian pension funds' assets under management (AUM) hit a record €28.7bn at the end of 2024, according to a quarterly report from the Financial Markets Authority Austria (FMA).

This was 2.1 per cent more than at the end of the third quarter and 8.9 per cent more than at the end of 2023.

Almost 1.1 million people - over 23 per cent of Austrian employees - are entitled to entitlements or benefits in the second pillar of the Austrian pension system, an increase of 3.1 percent yearly.

Of these, 14 per cent, or 151,777 people, already receive pension benefits.

The report noted that the war in Ukraine and the global interest rate turnaround weighed on the markets in 2022 and led to a negative investment performance.

However, a positive performance of 7.8 per cent was recorded again in 2024.

Last year’s increase was a result of contribution inflows and a good performance on financial markets, the report added.

The five inter-company pension funds hold the vast majority (92 per cent) of Austrian pension AUM, while around 8 per cent are managed by three company funds.

The breakdown of asset classes, which are largely (95 per cent) held indirectly via investment funds, changed little over the year.

It noted that 39 per cent of assets are invested in shares, 34 per cent in bonds, 6.5 per cent of funds are held in cash, while 5.8 per cent are invested in real estate. Just under 12 per cent is attributable to other assets.

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