Minister: Hungary’s pension system reliable
Hungary’s pension system is “reliable”, with the government covering pension payouts, Finance Minister Mihály Varga told parliament’s welfare committee on Tuesday.
Varga said pension hikes were based on economic growth, adding that growth had to be maintained in order to preserve the purchasing power of pensions. The minister said the government had made a commitment to have pension hikes keep up with inflation.
Since 2010, the average pension has increased to HUF 217,000 (EUR 571) from HUF 97,000 (EUR 256) and its purchasing power is up around 20%, Varga said. Next year’s budget allocates HUF 6,540 billion (EUR 17.3 million) for pension payments, he said, noting that Hungary’s 2.5 million pensioners will see a 6% pension rise in January.
Meanwhile, he said an international analysis of the Hungarian pension insurance system could be released soon. The report will also be evaluated by the government, with its recommendations to be put to a public debate in the first half of 2024, he added.
The functioning of the pension system must also be secured for the long term, Varga said, adding that there was no need for any urgent intervention. He rejected austerity measures, saying that the government had been against such policies even during times of global economic challenges and instead favoured job creation and price caps.
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2 Comments
This is the second joke headline today from a Fidesz government minister. Fidesz was so desperate for cash that they stole the funds from private pension plans of Hungarians years ago with the promise that they will get this money back when they retire. Well some of them are now retiring and the money isn’t there. It’s well known that many Hungarians take their money out of the country to protect it from Fidesz.
@larry – here is a link for those who are interested or need their memories refreshed re our Politicians´ raid on pension coffers.
https://www.etui.org/covid-social-impact/hungary/pensions-reforms-in-hungary-background-summary
From a centre-right outlet:
https://www.wsj.com/articles/BL-NEB-3240
Re ongoing funding for pensions – the fact that we, Hungarians, die younger than most Europeans actually works in our statistical favour for a change! Our Politicians should be so pleased:
https://www.statista.com/statistics/1235704/old-age-dependency-in-europe-by-country/
https://data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=EU&most_recent_value_desc=false