ABSTRACT
Hungary the retirement age changed in 1997, when the age limit was raised to 62 for both genders. Hungary in 1980, 47.3% of the entire population were active earners, whereas by 1996 the figure was only 34.2%. The Hungarian pension system has been constantly adapted since the mid-1980s, its pay-as-you-go structure did not change until 1994. The separation of the pension system and the social assistance system started in 1989, and in 1991, the indexing of pensions underwent significant changes. The enormous increase in the number of inactive persons, and of pensioners among them, is considered as an important factor driving pension reform. The changes in the number of pensioners were caused by several factors, but the framework was set by demographic trends. The large majority of pensioners in Hungary are old-age and disability pensioners. In addition, there are a noteworthy number of persons entitled to survivor pensions and beneficiaries of the separate pension scheme for agricultural workers.
