These Hungarians have 8.5 million in pension savings

A lot of attention is now being paid to voluntary pension fund (ÖNYP) savings, because based on the government’s announcement, the rights of savers will change significantly in 2025.Pursuant to the measure, voluntary pension fund savings, which are otherwise extremely inflexible, can be withdrawn completely tax-free for 1 year, provided that the fund member uses the amount withdrawn for housing.

For what purposes can the savings be used?

According to the draft legislation published this week, between January 1 and December 31, 2025, voluntary pension fund savings will be available tax-free (and free of all other administrative restrictions); but only if the saver proves that he will spend the money borrowed in this way on housing.

We have presented the nominated housing goals in detail in this article. In short, it is worth noting that many home renovation bills will be settled, but loan repayment and self-financing necessary for the purchase of a new residential property on credit are also supported goals. However, in the case of a purchase entirely out of one’s own pocket – according to our current understanding – it will not be possible to use the voluntary pension fund savings.

At first glance, this kind of release of voluntary pension fund savings may not be particularly helpful in a real estate transaction. After all, the average balance of voluntary pension fund members is HUF 2 million. In comparison, the prices per square meter in Budapest are already over HUF 1 million, which results in a purchase price of at least HUF 60 million for a 60 square meter apartment.