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Minister sees pension system more stable

The purchasing power of pension benefits has increased by 20% in real terms compared to 2010.

This was stated by Finance Minister Mihály Varga before Parliament’s Welfare Committee. At the hearing on Wednesday afternoon, the Fidesz politician pointed out that pensioners will see a real increase in their pensions again this year. Pensions were increased by 6% with effect from 1 January, while the Orbán government expects average inflation to be 3.5% this year. Since 2010, the government has kept its promise of stable pensions, including the restoration of the 13th monthly pension.

The finance minister rejected speculation in opposition circles and media that the government was preparing secret documents to prepare for an increase in the retirement age. He also said that the ‘Nők40’ programme, i.e. the early retirement scheme for women with 40 years of work, would not be reformed as it was successful. The stability of the pension system was increased by the fact that the Orbán government removed elements that did not belong to it, that significantly more contributors were gained and, finally, that the population decline was slowed down. The cyclical pension premiums now total five occasions and 345 billion forints (865 million euros), which are granted at growth rates of 3.5% and above.

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