Index - Economy - Inflation eats up pensions, more and more people work even after they reach the minimum age

Index – Economy – Inflation eats up pensions, more and more people work even after they reach the minimum age

Retirement prospects are becoming less favorable, according to a recent survey of 30-59 year olds. The retirement age is set at an average of 69 years, and the minimum is 70 in terms of expectations. Over the past year, the percentage of those who believe they will continue to work after reaching retirement age has risen from 21 percent to 27 percent.

Based on a representative survey by K&H, Hungarians see their retirement situation as bleaker. On average, participants expect their retirement age to be 69, which is the same as in recent years.

At the same time, an important change is that while in 2019 and 2020, 65 was the most frequently mentioned age limit, in 2021 and 2022 more people reported 70.

Pálma Székely, head of life insurance at K&H Biztosító and its sales channels, said about the research. he added:

It is also important that people of different age groups see their future differently. While the bulk of the 50-year-old group—43 percent—expects a retirement age of 65, 70 was mentioned most often among those in their 30s and 40s.

Few people want to retire before the minimum age

Respondents also revealed when they are actually planning to retire. As it turned out, the majority – 61 percent of respondents You plan to retire when the legal framework allows it. This is higher than in previous years: in the second quarter of 2019, 2020 and 2021, 66-70 percent expected it. This year, the proportion of those who believed they could switch to rest before reaching retirement age was 11%. In the past three years, there were also more of them, then their percentage was 12-14 percent.

They expect to continue working after they reach retirement age. This rate is higher compared to the level of about 20 percent in previous years. According to Palma Sekele, in general, he shows a slight pessimism regarding the already planned retirement. As he said, the fact that many people see the future more pessimistically in the current unfavorable and unfavorable economic environment also plays a role in this.

Pension erosion due to inflation

Pensions expert Andras Farkas said in What a breakfast in its presentation.

Among other things, the expert highlighted that twenty years ago pension inflation has not been this high (13.8%), but pensions have increased by only 8.9%. András Farkas believes that this is not over yet, because inflation will start more in September, which could mean another 3% inflation. He stressed: Because of this, some families of retirees may find themselves in a vulnerable position, and more people may have to seek help to pay for utilities.

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