K&H: middle-aged people would retire at 57, but can expect to do so at 69 – savings have decreased

Despite more favorable inflation and increasing household incomes, the high cost of living and the uncertain economic environment continue to strongly affect the finances of the population. According to the K&H Sure Future survey, the average savings of middle-aged people in the second quarter of 2025 were 1.8 million forints, which is a decline compared to last year’s 2.3 million forints and is similar to the level in 2022. The proportion of regular savers has decreased to 61 percent, meaning that two out of five middle-aged people are no longer able to save every month. Those who do manage to do so are more likely to do so out of caution: 46 percent of reserves serve as a safety net without a specific goal.

Retirement plans: desires and realities

According to the survey, middle-aged people would like to retire at the age of 57, but at the same time believe that in reality they will have to work until the age of 69. The majority, 62 percent, plan to live primarily on the state pension, while 72 percent admit that it alone will not be enough to provide an adequate standard of living.

77 percent of respondents believe that they will be forced to work in addition to their pension in order to make ends meet. This is also supported by the fact that the monthly amount required for the subsistence minimum has doubled in six years, and according to those surveyed, at least 208 thousand forints is currently required for this.

Self-care is essential

According to Pálma Székely, head of sales and life insurance at K&H Biztosító, the current results are a warning: “A significant proportion of middle-aged people clearly perceive that the state pension alone will not be enough, but despite this, many still postpone conscious retirement planning. Regular savings, especially pension insurance, when started on time, can provide real security and help ensure that retirement years are about relaxation, not forced labor.” One of the most important advantages of pension insurance, in addition to the long-term return, is that a 20 percent tax credit of up to 130 thousand forints per year can be claimed on contributions. This option is especially valuable now, when most households are having difficulty balancing their expenses and income.

Referring to the popularity of K&H’s pension insurance contracts, Székely Pálma said that their number showed a 12 percent increase between June 2024 and June 2025, while the market saw a third of this increase, 4 percent. During the same period, the premium income of pension insurance contracts also showed an increase exceeding the market average, at 23 percent, or 9 percent above the market average.