Hungarian government: Pensions to grow in 2018

The government is hiking pension payments by 3 percent in 2018, bringing about a 28.5 percent cumulative increase in their nominal value since 2010, a government official said on Saturday.

The extra 4,000 forints (EUR 12.8) per person will bring the purchasing power of pensions to 10 percent above the 2010 level, Bence Rétvári, the state secretary of the human resources ministry, told a press briefing.

He noted that in November this year pensioners received a one-off extra payment. This payment was possible thanks to strong economic growth, he added.

Rétvári insisted that the centralised pension system was benefitting pensioners, unlike the mixed state and private system run by the Socialist government before 2010, when pensioners lost an entire month’s pension due to the elimination of the 13th month pension.

Other measures such as food vouchers,

VAT cuts for basic food produce and cheaper medicines are also helping the elderly, he said.

The continued welfare of retired citizens is at stake at the spring election, Rétvári said. The government intends to establish a reserve fund to guarantee pension premiums in the future if it wins in 2018, he added.

As we wrote few days ago, opposition Jobbik oarty is proposing that pensioners should receive benefits after their children’s or grandchildren’s tax payments, Andrea Varga-Damm, an MP candidate of the patriotic people’s party.

As we wrote on November, five thousand Hungarians over the age of 65, most of them living alone in remote villages, will be given a computer with an internet connection thanks to a new government scheme, read more details HERE.

Photo: MTI 

Source: MTI