The retirement age for women may change: it can be introduced at that time

The Nők40 pension program is considered unique in Hungary and in modern pension systems, as it not only offers the possibility of early retirement, but it does so without deductions. THE Profitline sought the answerhow long the care considered to be hungaricum can be maintained in its current form.

These are the characteristics of the discounted pension for women

The article drew attention to several characteristics of the discounted pension. One of these is the 13th monthly pension, which also benefits in the same way as it does under Women40 retirement case. It means that the affected persons receive additional benefits for the number of years before the age limit they claimed the pension. An important addition to this is that since the 13th monthly pension is not supported by the payment of contributions, its costs must be covered by the state every year.

Another advantage is that in addition to Nők40, any income from employment is tax-free in the same way as earnings earned in addition to the old-age pension, so the employer is exempt from paying the social contribution tax (socho) in this case as well. In addition, the previous restriction on income earned with Nők40 has also been removed, so, as they write, women working in the private sector can withdraw their pension earnings with an 18.5 percent discount without restrictions, and their employer does not have to pay socho after them.

This could be the problem with the supply

However, it is causing more and more problems in the public sector the pension – including the discounted Women’s 40 – continues to be suspended as long as the pensioner concerned is a civil servant – draw attention. As they write, in the underfunded social, child protection, public education, vocational training and health sectors, they are trying to remedy the problem in an ad hoc manner instead of eliminating unnecessary restrictions.

The article also touched on the fact that when Nők40 was introduced, the goal was probably not to allow all women to retire before the age limit. However, the discounted pension is now so popular that it is chosen by at least half of retiring women. This ratio may rise even further with the increase of the general retirement age, and more and more women under the age of 65 obtain the necessary 40 years of driving license. According to the interviewed András Farkas, the Pension Guru

this year, nearly a quarter of a million women may decide to leave the contributory ranks and join the ranks of pensioners, and the system will not subject them to deductions.

In addition to these, the discounted pension is as much as possible encourages women to apply earlier also due to the fact that, in addition to their full pension, the persons concerned can continue to work in the private sector and in public sector sectors exempted from restrictions, moreover, their earnings are not burdened by contribution obligations or socho.

The article highlighted that no tightening is likely to be expected until the 2026 election, but after that it seems inevitableunless a decision is made that all women can retire a before the official age of 65. According to the expert, this can only be realized if the necessary resources are available every year.