November 27, 2022

South Sudan News Agency

Complete English News World

It’s not really over yet, should the Hungarian pension age be raised to “infinity”?

As the elderly outnumber the young for the first time in the history of mankind, far-reaching social change is taking place with unintended consequences (this process is already underway in the developed world and in the developing world within a generation). Therefore, the concept of “old” needs to be re-evaluated, because according to today’s popular opinion, “old man” is really only mature middle age.

Average life expectancy at birth is expected to increase from 46 years ago to an average of 80 years today to 90-110 years. (Until new epidemics and wars rewrite this scenario) Then the concept and ratio of active/inactive periods should be reevaluated. It is ludicrous to believe in the long-term survival of the human world with the costs of 30 years of childhood and youth and the expected 30-40 years of retirement (ie 60-70 years of inactivity in total) by today’s standards. !) is 30 years of active age in today’s sense

At the moment, the situation is not so serious: in the EU, on average, the time spent at work is 42.4 years, while the time spent in retirement is 20.8 years (of course, the inactive pregnancy years must be added to this. The above logic, so the ratio of inactive to active periods is approximately 45-55 is %). Of course, there are big differences between individual EU member states, with the current retirement age being the longest in Luxembourg and France, and the shortest in Denmark (because the Danes choose to retire so late). Austrian women (25.5 years), Slovenian women (26.1 years) and French women (26 years), and Luxembourg (22.1 years) and France (22 years) for men spend the longest in retirement. On average, women in the EU live 20-25 years as pensioners and men 15-20 years.

This is one of the reasons why states around the world are raising the retirement age, meaning that increasing life expectancy does not increase the time spent in retirement, but instead tries to increase the time people spend during their working lives as active workers and contributors. Throughout life.

The age limit is increasing almost everywhere

Almost all EU member states where the age limit does not reach 65 are planning to raise the retirement age. Currently, the pension age is below 65 for Austrian, Croatian, Polish, and Romanian women, and Bulgarian, Czech, Estonian, Latvian, Lithuanian, and Finnish and Maltese men and men and women born before 1961. In these countries, the age limit will generally be uniformly raised to 65 years by 2033 (64 years in Slovakia).

See also  Symbolically - Abroad - The first air strike struck Transcarpathia

EU member states where the retirement age is currently 65 or above generally plan for future increases depending on life expectancy growth at age 60 or 65. (11 of the 27 member states plan this solution: Sweden, the Netherlands, Finland, Denmark, Cyprus, Estonia, Italy, Portugal, Slovakia, the Czech Republic and Bulgaria). The age limit will increase from 2027 in Spain, from 2030 in Belgium, from 2031 to 67 years in Germany, from 2035 to 69 years in Denmark, and from 2050 to 69 years and 9 months in Italy.

In Sweden, a flexible pension age spectrum applies, currently you can apply for a pension between the ages of 62-68 and 63-69 from 2023, but if someone applies earlier, their pension will be smaller due to the use of lifetime annuity divisors depending on expected life expectancy. In the Netherlands, the retirement age will increase to 67 in 2024, but from 2025 it will be a purely additional life expectancy at retirement (the 12-month increase in life expectancy is subject to an 8-month increase in the age limit. )

We don’t have to raise anymore

As a result of aging trends, a woman in Hungary currently retires on average at 21 years and a man at 14.4 years.

The reduction in women’s pensions means that women’s retirement age changes to around 62, while men have to wait until they reach their retirement age, which is 65. Looking at life expectancy at age 65, a woman will receive an average pension of 18.1 years (217 times), compared to 14.4 years for a man ( 173 times) will get pension.

Being in Hungary Lasting for a decade In the lifting cycle, the age limit of 62 has increased by 3 years to 65 years, which is currently higher than in 11 EU member states, without the need to directly justify raising the age limit in the short term.

Over the past decade, the retirement age has increased faster than life expectancy after reaching the age limit, so there is no need for further increases in the foreseeable future.

See also  The seventh set of economic sanctions against Russia is already being prepared

in Hungary compared to the EU average

  • Life expectancy at birth is 5.6 years shorter for males and 4 years shorter for females.
  • Life expectancy at age 65 is 3.8 years shorter for men and 3.4 years shorter for women.
  • At age 65, life expectancy in good health is 3 years less for men and 2.6 years less for women.
  • The Hungarian retirement age of 65 corresponds to the EU average.

However, this 65-year-old Hungarian retirement age, despite its legal appearance, is not actually gender-neutral, i.e., it does not apply equally to both sexes. All EU member states have a pension system that can be applied for before the age limit (reduced age, reduced age, advanced and similar), which enables the person concerned to retire early, even in high retirement states, of course. , the earlier you claim your pension, the smaller your determinable pension amount will be.

In the base case, it is usually possible to use the pension 3 years before reaching the age limit.

Even if the age limit is not raised, it should be tightened

However, in Hungary, the pre-retirement pension system ended on January 1, 2012 – this made the pension system more difficult for men, who could not receive a pension in any way before reaching the age of 65 – but according to the full Hungarian law, a 40-year qualifying period was possible for women, before reaching their retirement age. You can get full pension without any deduction. Therefore, the Hungarian pension age – although it legally applies to both sexes – essentially applies only to men, as a significant number of women can claim the women’s discounted pension on average 3 years before reaching retirement age.

Based on the above, there is definitely no need to raise the age limit in Hungary in the next decade, but there is a need to tighten the conditions for women’s preferential pensions. After all, in 2011 a 40-year qualifying period requirement was created over the 62-year retirement age, but this age limit has been increased by 3 years, which should be reflected in the qualifying period requirement if not a member of the legislature. The retirement age for women should practically be 62 or below. In this case, the financial problems of the pension system may erode the Hungarian pension system faster than expected, so the Hungarian legislature may be forced to raise the age limit in general.

Revising the conditions of the women’s preferential pension could create flexible retirement opportunities for men again – however, both women and men could only receive their pension at a reduced amount (charged malus).

In any case, a healthy ratio of active and inactive life stages should be restored by revising retirement conditions.

An example to be followed in this regard is the Swedish model, according to which the increase in life expectancy should always be divided proportionally between active working years and inactive retirement years. In Hungarian: As in our country or in many European countries, the retirement age is not increased by a fixed number of years, but the life expectancy increase period is distributed between working years and retirement years. A dynamic formula.

We can trust ourselves

Without analyzing the multiplicity of social and economic sectors, a good solution to the grievances of the pension system cannot be found anyway. In light of Hungary’s ongoing transformation processes, it is sufficient to mention the sectors of health care, nursing and social services that are less able to fulfill their tasks without relentlessly increasing the pressure on the individual and the family.,

Social cohesion is (frighteningly) increasingly becoming a curse word in public discourse.

All large distribution systems can only operate on the principle of least common multiples, meaning they tend towards the minimum. If one wants a retirement income that will ensure financial conditions for a dignified, healthy and good life till death, one can create it today only through personal solutions. Of course, everyone has the right to ignore all this. But you should be aware that by rejecting or postponing retirement savings — for whatever reason — under current circumstances, you could be making life legitimately difficult for your own children and grandchildren.

This, on the other hand, is the concept section of the portfolio.

The article reflects the opinion of the author and does not necessarily reflect the position of the Portfolio Editorial Board. If you want to comment on the topic, send your insights to [email protected] Portfolio Review Section On the other hand. Published articles Here can read

Cover image: Getty Images