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Referendum on old age pension after 40 years in employment

August 15th, 2015

A left-wing commentator disagrees with the idea that men, like women, should be allowed to retire after 40 years of fixed employment and contributions.

In Népszabadság, business commentator Emese F. Szabó believes that if the referendum proposed by the trade unions is successful, the expenses of the national pension fund will have to be increased by another 200 billion forints, on top of the 200 billion already spent on the pensions of women who are below the retirement age, but who have been employed for a minimum of 40 years. Demographic trends, she warns, suggest that the minimum retiring age should be increased, rather than diminished. She admits, however that it is unrealistic to expect an unchanged physical performance from people over 55, but sending them into retirement is hardly affordable. She suggests shorter working hours after 55 instead, with automatic compensation to employers for the ensuing losses.
The initiative of the trade unions is supported by the Socialist Party and by Jobbik, while Fidesz warns that its success would endanger the stability of the pension system.  The general retirement age at present is 62 years and six months and is being increased by six months yearly until it reaches 65 in 2021.

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