Impact of the Economic and Financial Crisis on Pension Systems in Central and Eastern Europe: Hungary*
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András Simonovits
András Simonovits received his MA in Mathematics in 1970 and his Ph.D. in Economics in 1982. He has been working at the Institute of Economics (HAS) in Budapest since 1970, as well as at the CEU since 1996 and the Mathematical Institute of the Budapest University of Technology since 2000. He has been invited to several European and US universities to teach and do research. His primary interest lies in pension economics and dynamic systems.
Abstract
By 2008, the Hungarian pension system had grown too generous (with the average pension to average net wage ratio equaling 70%) and the implied contribution rate (32%) was hindering growth (dropping to 1% in 2007). When the international economic and financial crisis deprived Hungary of normal credits, the country’s government turned to international organizations for help. The most spectacular element of the conditions attached to the bailout package was the short and long-term reduction of pension benefits. Within months, the Hungarian government eliminated the unsustainable 13th month benefit, reduced health-insurance contribution rates, replaced wage-price indexation with price indexation and drastically increased the normal retirement age in the medium-run. The newly elected conservative party practically shut down the second pillar and used up the released capital not only to reduce the government deficit and debt but also to finance public expenditures.
About the author
András Simonovits received his MA in Mathematics in 1970 and his Ph.D. in Economics in 1982. He has been working at the Institute of Economics (HAS) in Budapest since 1970, as well as at the CEU since 1996 and the Mathematical Institute of the Budapest University of Technology since 2000. He has been invited to several European and US universities to teach and do research. His primary interest lies in pension economics and dynamic systems.
References
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© 2011 by Lucius & Lucius, Stuttgart
Artikel in diesem Heft
- Inhaltsverzeichnis
- ZSR-Schwerpunkt: Financial Market Crisis and Pension Reforms in Eastern Europe
- The Financial Market Crisis and Old-Age Security
- Pensions at the Time of Recession. The Case of Lithuania
- The Impact of the Economic and Financial Crisis on the Polish Pension System
- Impact of the Economic and Financial Crisis on Pension Systems in Central and Eastern Europe: Hungary*
- Impact of the Economic and Financial Crisis on the Pension System in the Czech Republic
- Beiträge außerhalb des Schwerpunkts
- Sozialpolitik als Hilfe für die Wirtschaft?
- Bedürftigkeit von Müttern: Dauer des Leistungsbezugs im SGB II und Ausstiegschancen
- Abstracts
Artikel in diesem Heft
- Inhaltsverzeichnis
- ZSR-Schwerpunkt: Financial Market Crisis and Pension Reforms in Eastern Europe
- The Financial Market Crisis and Old-Age Security
- Pensions at the Time of Recession. The Case of Lithuania
- The Impact of the Economic and Financial Crisis on the Polish Pension System
- Impact of the Economic and Financial Crisis on Pension Systems in Central and Eastern Europe: Hungary*
- Impact of the Economic and Financial Crisis on the Pension System in the Czech Republic
- Beiträge außerhalb des Schwerpunkts
- Sozialpolitik als Hilfe für die Wirtschaft?
- Bedürftigkeit von Müttern: Dauer des Leistungsbezugs im SGB II und Ausstiegschancen
- Abstracts
