Varga: Lower retirement age would mean cuts to pensions

Issues

If Hungarian voters approve a proposed referendum that would make it legal for men to retire after 40 years of employment, then pensions must be lowered, Hungary’s National Economy Minister Mihály Varga told Hungarian online daily origo.hu yesterday.

Efforts are currently underway to gather the 200,000 signatures needed to put the referendum about reducing the retirement age to a national vote.

The effort to hold a referendum was originally rejected by the National Election Committee of Hungary, but a court ruled against the committee’s decision, online daily atv.hu reported on June 13. Organizers of the referendum were given 120 days following the court’s decision to collect the necessary signatures.

Varga told Origo that lowering the retirement age would mean more pensioners would be drawing from the same pension fund, so that the pension allotments would have to be lowered. The minister added that a situation like this needs thorough investigation, and given that the court has approved the initiation of such a referendum, the ministry has “started calculations”.

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