The Hungarian government had previously planned a budget for 2023 with an inflation estimate of 5.2 percent and an increase in pensions by the same amount. calculated for the month of January. However, Orbán’s Treasury may make changes due to unfavorable inflation expectations.
Minister of Economic Development Marton Nagy on October 22 Government information He said that the amount of the pension increase is always determined based on the inflation expectations of the Hungarian National Bank. The latest report already predicts 13% inflation for 2023. New data in this regard may arrive in mid-December.
So the difference between the two expected inflation numbers is two and a half times. The RTL News Based on that
From January 2023, the average pension may rise by HUF 22,000 to HUF 196,000 per month.
There are currently about 2.5 million retirees living in Hungary, most of whom receive an old-age pension that is below average. According to PensionGuru, despite the increase
300,000 will receive a monthly pension of less than 100,000 HUF next year as well.
A larger increase than previously planned could mean an additional 500 billion dollars in the Hungarian budget. László Juhász, head of the Reconciliation Council for Pension Organizations, believes that a much larger increase would be necessary, because retirees also spend much more on food than before. According to Gohash, the situation of the elderly is becoming more and more worrying, because they have so many expenses that the majority of them cannot pay utilities, as well as the costs of medicines and various foods at the same time, but they are forced to. Choose the one they need most in their special life situation.
The course of retirement will change next year
Gradually raising the retirement age from 62 to 65 this year completed, as of 2023, just pay attention to who turns 65 in the given calendar year. A woman can still retire with forty years of eligibility.
Full old-age pension entitlement can be obtained after twenty years of service. A person who has reached the retirement age corresponding to the year of his birth and has at least fifteen years of service, is entitled to a partial old-age pension.
New in the pension calculation rules for 2023 is the definition of the so-called valuation multiplier, which raises previous years’ earnings data to the level of the previous year’s earnings to determine annuity. Adjustment at the level is the national grid average income It depends on its annual increase, and this complication, which is determined annually, will have a significant impact on the amount of the pension. The complication of the valuation will be published in March of each year.
Pay to retire later
If circumstances permit, it is not necessary to benefit from the right to a pension from the date of reaching retirement age. If it is allowed to continue working, or if the person concerned works in the competitive sector, within the framework of an employment relationship, continuing to work without fixing a pension will have a positive effect on the amount of the pension.
Those who have worked for at least twenty years and have reached retirement age will receive a pension increase, the rate of which increases by 0.5% of the old-age pension every 30 days. With an increase in the pension, the amount of the old-age pension may exceed the average monthly salary.
