The average expected retirement age of 30-59 year-olds is 69 years, according to the latest survey by K&H, Hungary’s second largest commercial bank. The official retirement age in the country is 65 years now.
Pálma Székely, head of K&H Biztosító’s life insurance and her own sales channels business unit, pointed out that while in 2019 and 2020, 65 was the most frequently expected age limit, in 2021 and 2022 more people mentioned 70 as the expected retirement age.
She added that while the largest share of people in their fifties (43%) expect a retirement age of 65, the most frequently mentioned expected age among people in their thirties and forties was 70. This means that younger working adults see a gloomier future for themselves.
As Pálma Székely noted, a slight pessimism emerges from the responses on the actual planned retirement. This may reflect the fact that
although retirement expectations are long-term, many people are more pessimistic about the future in the current uncertain and unfavorable economic environment.
The survey also looked at when respondents plan to retire. 61% of respondents would retire when the law allows. This year, 11 percent were hoping that they would be able to retire before reaching retirement age. At the same time, 27 percent of survey respondents think they will continue to work after reaching retirement age. In previous years, the proportion was only around 20 percent.
The Hungarian government is currently working on increasing the pensions. As part of the government’s measures, the 13th month pension was reintroduced recently, and pensioners got a premium of HUF 80,000 (EUR 200) in November.
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