Published: November 22 2023
In Hungary, there has been a significant increase in the number of older adults who are continuing to work due to financial reasons. While in Western countries, retirement is often a matter of choice, in Hungary it is a necessity.
Increasing numbers of older Hungarians in the workforce
The number of 65-69-year-olds in the workforce has grown from 25,000 in 2010 to 84,000 in the past year. Similarly, there has been an increase in the employment of 70-74-year-olds, from 6,000 in 2010 to 28,000 in 2022.
Financial necessity and lower pensions
One of the main factors driving older Hungarians to continue working is the relatively lower pensions. In recent years, pensions have been 20-30% lower than average earnings. This financial disparity pushes many older adults to seek employment in order to supplement their income and make ends meet.
Coercion in certain professions
In certain professions, there is coercion for older adults to continue working. For example, the average age of family doctors is 65, and if they retire, medical care would be compromised. The same situation applies to other areas of healthcare, as well as social work and teaching.
Low salaries and labor shortage
The low salaries in the social sphere, ranging from Ft 200,000-230,000 per month, contribute to the need for older adults to continue working. Despite the low pay, the labor shortage in these fields forces individuals to stay employed in order to support themselves financially.
Overall, the increasing numbers of older Hungarians in the workforce highlights the financial challenges they face and the necessity of continuing to work for financial stability.
Questions & Answers
Why are increasing numbers of older Hungarians working? Many older Hungarians are being forced to work for financial reasons. Pensions in Hungary are 20-30% lower than average earnings, making it difficult for retirees to live comfortably without additional income. Coercion is also a factor in certain professions, such as family doctors, where the average age is 65. If they do not continue working, medical care could be negatively affected.
How many 65-69-year-olds are currently working in Hungary? According to Central Statistics Office data, the number of 65-69-year-olds in the working world grew from 25,000 in 2010 to 84,000 last year.
How many 70-74-year-olds are currently working in Hungary? Similarly, the number of 70-74-year-olds who are employed has increased in Hungary. In 2010, 6,000 of them were working, while as many as 28,000 were employed in 2022.
Is the decision to retire or continue working a matter of preference in Hungary? In developed Western countries, the decision to retire or continue working is often a matter of preference. However, in Hungary, it is mainly a matter of financial necessity. The lower pensions compared to average earnings in recent years make it challenging for retirees to rely solely on their pensions.
Are there labor shortages in certain sectors in Hungary? Yes, there are labor shortages in certain sectors in Hungary. This is particularly the case in the social sphere, healthcare, and education. Many workers in these fields, who earn a low monthly salary, often have to continue working in order to make ends meet and overcome the labor shortage.