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Hungary: No plans to raise pension age

The government does not plan to raise the official pension age for the time present, but it does aim to raise the average age at which Hungarians retire or take earlier retirement in the coming 5-6 years, state secretary at the Social and Labor Affairs Ministry Lajos Korózs said at a press conference organized by the National Council on Aging on Tuesday.

Hungary’s pension age is currently 62, but, because of the number of people who take early retirement, the average age when Hungarians stop working is 58.6, Korózs said. Early retirement is part of the reason for Hungary’s low workforce participation rate: 58%, well under the 63% EU average. And Hungary’s workforce participation rate for women is an especially low 49.7%, he added. Employee pension contributions currently cover just 80.5% of pension payments. The rest comes from tax revenue. (MTI-Econews)