The purchasing power of pensions could grow by an annual 3.2-3.4% thanks to pension hikes at the start of the year and low inflation, Minister of State for Social and Family Affairs Miklós Soltész stated on Thursday.
Mr Soltész called the rise in purchasing power unprecedented, and stated that in 2010 the Government set three goals in this field: to ensure the financing of pensions, the sustainability of the system in medium- and long-term as well as to boost the activity of elderly people.
In June 2010 the Government faced the fact that 350 billion forints were missing from the pension fund, endangering the system’s financeability. For this reason, the mandatory private pension funds were abolished.
He also noted that in the Government’s first two years the aim was to keep the purchasing power of pensions level, and now growth can be experienced, too, which will affect pension payments.
(Ministry of Human Resources)
