Many Hungarians Face Tough Retirement Years
A new survey by pollster Median and insurer Generali Providencia Zrt., the Hungarian unit of Generali Vienna Holding AG (GES.VI), found that a third of Hungarians below 60 are properly preparing for the period after their career – in most cases by setting aside retirement assets, Dow Jones reported. The poll also found that only about 12% of the total population has life insurance or savings in a pension fund.
Of those between 18 and 60, slightly less than a quarter
(23%) of those polled and 34% of current workers are
putting savings in a voluntary pension fund, the survey
found. Those employed in the public sector, by state
companies or large multinational firms make up the majority
of people who have savings in pension funds, while the self
employed and those employed by small companies tend not to
save in pension funds, the survey found.
“Most of the low income earners and those employed in the
gray economy miss out on those savings vehicles, and they
don’t have (any other) savings either,” said Zoltan Paal,
Generali Providencia’s managing director, in a statement,
according to the news report.
About 38% of those Hungarians older than 45 could easily
have money woes once they retire, pollsters said. This age
group has no significant savings and does not take part in
retirement plans. About 28% of them earn little, so their
state pensions will likely be very low, Paal added.
Many workers in that group plan to keep working after
retirement age and regard their standard of health as lower
than the average, according to the news report.
In Hungary, the state pays pensions, a development in
recent years that can be supplemented by private savings in
voluntary and compulsory pension funds.