Hungarians continue to work, yet the risk of impoverishment has increased among workers who are about to retire

By: Trademagazin Date: 2023. 11. 08. 11:26

Despite the population decline experienced in the last ten years, the latest census data of the National Statistical Office show that labor market activity is higher among generations, especially over 65 years of age. However, it is a cause for concern that, according to Eurostat data, the risk of impoverishment and social exclusion is the highest among those about to retire in Hungary. The change in the economic environment, income uncertainty, and the postponement of the old-age pension age, which increased from 62 to 65 years since the previous census in 2011, may play a role in all of this.

According to the 2022 census data, the number of employed Hungarians increased by nearly 776,000 people, while the population decreased by more than 330,000 people compared to the previous census data. In the past decade, not only demographic changes have taken place, employees have to work longer before they are entitled to the old-age pension. Inflation, low real wages and the fear of impoverishment can all encourage people over the age of 65 to stay in the labor market.

The effect of raising the retirement age is evident in the KSH 2022 data series, 34.3 percent of the 60-69-year-old age group was working, while in 2011, taking into account that the number of members of this age group is lower, this ratio was 12.6 percent. A similar trend was also observed for workers aged 70 and older; the proportion of employed people increased compared to the period of the previous census.