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Oct 02, 2019

Government provides more support to pensioners and youth

The first new initiative is a one-off pension bonus that – according to an earlier government decision – kicks in when economic growth exceeds a certain level while the other is a government bond specifically tailored to young people’s private pensions.

Hungary is helping the financial situation of pensioners and the younger generation with two new initiatives.

The first is a one-off pension bonus that – according to an earlier government decision – kicks in when economic growth exceeds a certain level while the other is a government bond specifically tailored to young people’s private pensions.

According to Rmx.news, the pension will be comprised of a HUF 20,160 pension bonus and a HUF 11,000 pension supplement to be paid out in November – just ahead of the Christmas period. While the total amount for one pensioner (HUF 31,160 or just under EUR 100) may not seem much, it is almost one quarter of the average pension in Hungary, currently at HUF 134,900.

The conditions of a government bond for young people’s pension savings are currently being formulated, but the idea behind it is to offer young people in the 20 to 40 age bracket an attractive and secure long-term saving method which also guarantees yields similar to the recently introduced “super-bond” which has proven a runaway success, attracting HUF 300 billion in private money.

The pension bond will also help Hungary further reduce its exposure to international money markets and currency fluctuations in its debt servicing.

Zoltán Kurali, director general of the State Debt Management Agency (ÁKK), said the pension bond is targeting the younger generation, half of whom said in a recent survey that they don’t expect state pensions to cover their costs when reaching retirement age.

Photo credit: hellovidek.hu