EU proposes adjusting Hungary’s retirement age: here’s how

In Hungary, the expected number of healthy years after the retirement age of 65 is alarmingly low, with both men and women averaging just five more healthy years. This statistic places Hungary at the bottom of the European Union rankings. Experts argue that if life expectancy decreases, the retirement age should be adjusted accordingly to reflect these demographic realities.

The EU is considering a policy that would link the retirement age to changes in life expectancy across member states, including Hungary, Dívány reports, based on Nyugdíjguru. This approach aims to address the challenge of setting retirement policies when life expectancy is shorter than anticipated.

Hungarian pensioners’ life expectancy lower than in the EU

Currently, the average life expectancy for a 65-year-old man in the EU is 17.3 years, while for women it is 20.9 years. However, in Hungary, these numbers are significantly lower: Hungarian men can expect an additional 13.2 years, and women 17.3 years. As a result, Hungarian men typically spend around 13-14 years in retirement, while women spend about 20-21 years. Notably, Hungarian women often retire earlier, around ages 61-62, due to early retirement policies, while men must wait until 65.

Only 73% of Hungarian men and 87% of women reach the age of 65. Furthermore, the number of healthy years they experience post-retirement is just 4.9 years, one of the lowest figures in the EU. This situation forces many elderly Hungarians to endure health issues and reduced quality of life during their retirement years.

Several EU countries have already raised or plan to raise the retirement age in response to demographic trends. For instance, Spain aims to increase it to 67 by 2027, Belgium by 2030, Germany by 2031, Denmark to 69 by 2035, and Italy to 69 years and 9 months by 2050. Sweden operates a flexible retirement system allowing citizens to retire between the ages of 63 and 69, with earlier retirement leading to lower pension benefits.

Retirement age increased in Hungary

In Hungary, the retirement age increased from 62 to 65 years between 2010 and 2020, surpassing the retirement age in 11 other EU member states. Despite this rapid increase, the corresponding rise in life expectancy has not kept pace, suggesting that further raising the retirement age may not be necessary at this time. However, the EU’s proposed policy would allow for adjustments if life expectancy were to change, ensuring that retirement policies remain fair and sustainable.

The EU recommends that Hungary adopt a flexible approach similar to other member states, where the retirement age is adjusted based on life expectancy at age 65. This policy would allow for a reduction in the retirement age if life expectancy declines, ensuring that the retirement system is responsive to demographic and health trends.

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