Shocking truth revealed: Why Hungarians have shorter retirement lives

Despite Hungary’s high retirement age, the truth is that the life expectancy of those who retire is disappointingly short. This puzzling phenomenon has sparked widespread curiosity, leading to an interview which delves into the problems’ complex roots.

András Farkas, an expert at NyugdíjGuru News noted health and lifestyle factors as the main cause for why Hungarian people have a shorter retirement span than those from other EU member states.

According to Index, he mentioned that Hungary‘s place in pension statistics across Europe is not great even though the exact reasons are not clear yet. Farkas discussed various elements that are adding to this trend, like sedentary lifestyles, obesity and smoking, which have an impact on Hungary’s short life expectancy.

Farkas highlighted the concerning trend of decreasing life expectancy in good health in Hungary and the EU, noting Hungary‘s particularly poor standing. Farkas also mentioned that premature deaths, especially among middle-aged individuals are causing high rates of mortality in Hungary compared to more developed nations.

The expert suggested the future development of the healthcare system and health awareness is very important for increasing life expectancy. Even though recent changes have set Hungary’s retirement age to 65, the expert thinks there could still be more increases in the upcoming years depending on various elements.

Recent news about pensions include a positive highlight: in 2023, voluntary pension funds made a net profit of 21.2% – the most in more than 25 years. Furthermore, there is talk of possible advantages related to health funds that might significantly boost the worth of one’s pension.

Retirement Statistics

According to Index, survey findings indicate a significant growth of almost 25% in savings among members of MBH Care Health Fund in the first two months of this year compared to the same period last year.

The majority of answers (70.4%) said that security is the most important reason for saving money in retirement, followed by tax optimisation with 42.4%. For health savings, cost savings were seen as crucial by a majority (54.5%) and also the feeling of health security (62.9%)).

Zsófia Horváth, Head of Sales and Marketing at MBH Care Health Fund, commented that its members could lower their healthcare costs or cut down on health insurance expenses up to HUF 150,000 (EUR 385) per year through tax credits by saving in the health fund.

Regarding health savings, the survey found that 42.9% of respondents typically save between HUF 6,000 (EUR 15) and HUF 15,000 (EUR 38) monthly, while 39% save over HUF 15,000 (EUR 38) for health-related expenses. Horváth highlighted that funds from health savings accounts can be used for various purposes after 180 days, such as housing loan repayments, job search and childcare allowances or receiving a lump sum of up to HUF 1 million (EUR 2,500) for childbirth.

Additionally, the balance can be used for school fees or accommodation for children in higher education. The survey also emphasised the importance of online management options, with 76.2% of respondents valuing this feature.

Read also:

• Tragic: Number of Hungarians leaving the country at historic high – HERE
• Hungary doomed to be the assembly line of Europe? – HERE

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