The Hungarian economy expanded beyond expectations in the second quarter. In this regard, pension expert Andras Farkas drew attention to the fact that
This is particularly welcome news for retirees, as the size of the retirement premium depends on how much annual GDP growth exceeds 3.5 percent.
reminds me of another in writingThe maximum premium would have been HUF 16,000 with an increase of 4.3% originally planned for this year.
Recent analyst forecasts predict GDP growth of up to 7-8% this year. The pension premium must be calculated by multiplying a quarter of the November pension, but not more than HUF 20,000, by the difference between the actual GDP growth and the statutory growth threshold of 3.5%. There is also an upper limit for the last difference, the multiplier can reach 4. In other words, in the case of an increase of more than 7.5%, the pension premium will not increase further.
In practice, this means that those who receive a monthly pension of at least 80,000 HUF will receive a one-time 80,000 HUF at the end of the year (20,000 HUF calculated in a multiple of 4).
This will be the biggest boost since the premium was applied, as the increase has never been so high as to conflict with a multiplier of 4, he writes pension expert Founder.
The expert also notes that more than 2.6 million people are expected to receive a (one-time) pension this year as well, as well as a number of other beneficiaries in addition to older retirees, including women who receive a pension. Reducing the pension of women. In other words, not only people who meet the legal requirements can receive a retirement allowance, but also a much wider circle, as well as temporary widows’ pensions, benefits for people with variable working capacity, early retirement benefits, service allowances, disability benefits, disability benefits, beneficiaries Of the personal benefits of the blind and members of nearly twenty other similar categories of benefits. It also indicates that this is a benefit in a lump sum that is not included in the amount of the pension or other benefits that are entitled to a benefit in a lump sum.
The pension premium is paid ex officio by the Pension Paying Authority with the November pension.
Cover image source: MTI / Filep István