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Call for a pension system reform

July 21st, 2015

A conservative columnist thinks that Hungary has no choice but to raise the retirement age, otherwise the pension system will become insolvent.

Hungarians in their 30s and 40s are well aware that they will have to work longer than the age of 65, comments Richárd Szilágyi in Magyar Nemzet . He was referring to a statement last week by Zsolt Spéder of the  Hungarian Central Statistical Office. Mr. Spéder suggested that in light of demographic trends, the Hungarian government must sooner or later raise the retirement age, in response to an aging population and low birthrate. Szilágy believes that reforming the pension system is a risky undertaking, which former Hungarian governments shied away from, fearing that voters would take revenge on such a potentially unpopular decision. The conservative columnist recalls that according to recent projections, by 2060 Hungarian population will decrease to 7,9 million which make the current pension system insolvent. In conclusion, Szilágyi welcomes the government’s indication that it is willing to tackle the issue through cautious calculation and discussion, so that young Hungarians of today will one day also have the chance of a decent life as pensioners.

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