New Data Paints Dark Picture of Hungarian Old-Age Pensions
Péter Cseresnyés 2019.09.25.
A recent article examines Hungarian pensions. The gathered data reveals not only how much benefit the different groups of retired people get, but covers how much the average pension and the median pension is in the country while also pointing out the regional disparity.
Based on the latest data of the Hungarian Central Statistical Office (KSH) and the Hungarian State Treasury, András Farkas, a pension expert, calculated the total amount of pensions in 2018. The statistics show how the amount of old-age pensions is distributed in Hungary, taking mostly those receiving their pensions as their main source of income into account.
According to the article, the average pension in Hungary is currently HUF 135,000 (EUR 403).
The gathered data shows that 17,777 people receive the minimum pension of 28.5 thousand forints (EUR 85) or less, but practically all of them are part-time retired people who also have a pension from another country.
The overwhelming majority of pensioners, 1,754,805 people (87%), have pensions ranging from 50,000 to 200,000 forints (EUR 149 – EUR 597). In comparison, according to the latest statistics of the Hungarian Central Statistical Office (KSH), the average net income is 239,000 forints (EUR 715).
The highest bandwidth pensions of 300 thousand HUF (EUR 895) and above is received by 38,165 people. 23 of them receive pensions between 1 and 2 million HUF (EUR 2 977 – EUR 5944) and 9 of them receive more than 2 million.
The expert also calculated the pension median in Hungary which shows the most typical value of this type of benefit. It is 117,500 HUF (EUR 350).
The data clearly shows that in December 2018 the average pension was 54.8% of the average net earnings in Hungary. There is also significant regional disparity. The pension in Budapest is only 58% of the average net wage in the capital, while in Northern Hungary the average pension is 72.5% of the average net wage there.