Hungary's pension system: demographical challenges and preventive measures

Abstract

The primary aim of our research is to present the pension system of Hungary, to explore its specificities, so that the reader can get a comprehensive picture of its characteristics and determining elements. The relevance of the study is justified by the fact that not only in our country, but in all countries of the world, the issue of an adequate and sustainable pension system is considered a very pressing problem. In order to establish the subject, it was essential to undertake an in-depth study of the domestic literature on pension provision, which we have endeavoured to do to the best of our knowledge. In addition to the catalogues of our country's libraries, the various databases and other on-line services available on the Internet were of great help in accessing and processing these data. Our study of the literature has confirmed that the literary background of the pension system and its connections is so wide-ranging and extensive that it would be beyond the scope of this work to present all its aspects. Therefore, we have tried to synthesise the theoretical background knowledge that is essential for the presentation of the pension system of Hungary. Our country’s pension system and its history can be traced back to the 16th century. From then on, it has gone through a very long journey and has been modified several times before the characteristics of today's pension system have been developed. It is clear that the pension system and the changes it has undergone are influenced directly or indirectly by a number of factors, given the complexity of the subject. Our research has focused exclusively on certain aspects of demographic trends. With the help of these, we tried to answer the question of the impact of demographic trends on the Hungarian pension system and the challenges it faces. Our exploratory research has shown that demographic factors cannot be considered in a purely national context, as different but closely related processes are taking place in different areas and counties of the country. It is precisely for this reason that we considered it important to conduct a dynamic statistical analysis of the population in the counties. From the demographic trends identified, it is clear that the low fertility rate, the increase in average life expectancy at birth and the increasing economic emigration have a demonstrable impact on the pension system in our country.

Keywords

• pension
• hungarian pension system
• demographic characteristics
• old-age pension
• population