Fewer Tax Payers, More Pensioners In 15 Years In Hungary
- 21 Feb 2014 8:00 AM
At the same time, 2.147 million Hungarians are expected to retire in the same period with only 1.633 million people entering working age, he said. These data do not account for people who work abroad or those who will be of working age but not expected to pay contributions.
This leaves the real number of contributionpayers lacking from the system at about 800,000, Farkas said. Today two active workers are needed to finance the pension of one person, and this rate is continuously deteriorating with the gap between births and deaths around 40,000 each year, he said.
Farkas noted that adopting the Swedish pension model could be considered as an alternative. In that model, people are encouraged to stay in work beyond the pension age to increase their entitlements. While active workers provide the basis of payments there, too, contributions are tracked individually, he added.
Source www.hungarymatters.hu
Follow that link to sign-up for MTI’s twice-daily newsletter.
LATEST NEWS IN current affairs