If you have worked in several EU countries, you may have accumulated pension rights in each of them.
You should apply to the pension authority in the country where you are currently living, or you last worked. If you have never worked in the country where you are living, your host country will forward your claim to the one you last worked in. That country is then responsible for processing your claim and bringing together records of your contributions from all the countries you worked in.
In some countries, the pension authority should send you your pension application form before you reach that country's retirement age. If you do not receive it automatically, check with your pension authority to find out about the process. In some EU countries, you will have to wait longer to start drawing your pension than in others.
You can only receive your pension from the country you currently live in, (or have last worked) once you have reached the legal retirement age of the given country. If you have accumulated pension rights in other countries, you will only receive those parts of your pension once you have reached the legal retirement age in those countries. Therefore, it is important to find out in advance how changing the date of your retirement affect your accumulated pension rights in other countries. If you take one pension earlier than the other, it might affect the amounts you receive.
- Find more information on state pensions abroad on the European Union's website.
- Country specific social security and pension information are available under national administrations.
- The European Union provides further information on employment and social security here.
There are two types of Hungarian pension systems: private and state. Pension contributions are deducted from your monthly salary by your employer. As of 1 July 2020, a new aggregated social security tax of 18,5% is in place. This amount paid by employees contains the contribution for state pension (previously 10%). For all private pension systems, the payments will need to be made individually by the employee.
Find all the information regarding the Hungarian pension system at the site of the Central Administration of National Pension Insurance.
If you wish to claim a Hungarian retirement pension when you have left Hungary, but still plan to live in Europe, visit your local pension office where they will tell you what you are able to claim back when you leave Hungary.
Persons who have reached statutory retirement age and have paid the necessary number of years of insurance contributions are eligible for an old-age pension. From 1 January 2010, the retirement age for old-age pensions will gradually increase from 62 to 65 years (by half a year for all ages). This rise first affects people born in 1952. In 2020, those born after 1956 can retire at the age of 64.
You may be entitled to draw an old-age pension even if you are still gainfully employed, up to the income ceiling set by law. Since 1 April 2007, pensioners in salaried employment are required to pay pension contributions on their income. After 365 days of insurance payments, their pension increases by 0.5% of the amount of the monthly contribution base.
The amount of the pension depends on the average salary and the length of service (insurance period). The average salary on which the old-age pension is calculated is, as a general rule, determined on the basis of pensionable income between 1 January 1988 and the date of retirement.
The Hungarian pension system provides a minimum pension with a minimum length of service of 20 years; HUF 28,500 per month. If the average contribution base is less than the minimum pension amount, the pension is equal to 100% of the average monthly wage.
The so-called ‘old-age pension for women with 40 years of eligibility period’ is available for women who have fulfilled 40 years of gainful activity, regardless of their age. From 1 January 2012, the former early retirement benefits, with the exception of the ‘old-age pension for women with 40 years of eligibility period’, are now combined as ‘benefits prior to retirement age’
In 2005, a new tool, ’Premium years programme’ was introduced into the labour market, designed to keep the elderly in active employment. The objective of the programme is to let workers in the public sector ease into retirement by allowing them to continue to work part-time. Public sector employees within 3 years of retirement who have completed at least 25 years of service can reduce their working hours, while receiving 70% of their former salary until they reach retirement age. This period counts towards social insurance rights. This benefit can be considered as a form of pre-retirement.
Pension applications should be submitted using a standard form. If you live in Hungary, you can submit the form to any pension insurance directorate, in person, by post or electronically.
If you are living or staying outside the EU/EEA, you must submit your application to the Pension Payment Directorate. If the application is not submitted in person, the applicant’s signature on the printed form must be certified by a notary, or by the Hungarian Consulate, or by a local authority.
- Find national contact points in Hungary here.
RESAVER is a state-of-the-art Pan-European Pension Plan that enables mobile and non-mobile employees to remain with the same pension arrangement when moving between countries and when changing jobs.
RESAVER is:
- A retirement savings vehicle for European research institutions;
- A multi-employer, multi-country defined contribution pension plan; and
- A way of facilitating the mobility of researchers in Europe by providing continuity of pension savings as they move between organisations and countries.
The RESAVER solution is supplementary to social security pension system but can replace the existing supplementary scheme.
More information:
- RESAVER Pension Fund webpage.
- Pensions for researchers under Jobs&Funding.