Surprising data has been received on the pension savings of Hungarians

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By RockedBuzz 6 Min Read

The whole property managed in voluntary pension funds continued to extend in the third quarter of 2023 after the earlier loss of momentum attributable to unfavorable international components. The quantity of over HUF 1.76 billion in July-September implies that the pension savings managed in the funds have reached an unprecedented excessive degree – amongst different issues, that is revealed by the latest sector evaluation of the National Association of Voluntary Funds (ÖPOSZ).

The enhance in property is because of the enhance in member and employer contributions, in addition to the continued enchancment of yields that began in the center of final 12 months. In the first 9 months, the annual nominal yield elevated to three.5 p.c, and with the easing of inflation, the constructive actual yield is getting nearer and nearer.

The common wealth per capita elevated by twenty p.c

Membership charge funds by pension fund members throughout July-September amounted to HUF 28.9 billion, which is nearly 10 p.c increased than a 12 months in the past. This enlargement might be attributed each to increased contributions by employers and workers: fund members elevated their contributions by 8 p.c and employers by greater than 12 p.c. All of this resulted in the undeniable fact that, though the overwhelming majority of funds are nonetheless made by workers, the share of the employer aspect, which is taking on extra accountability, now stands at 37 p.c of all funds, after 32 p.c in 2022. Due to the enhance in deposits and returns, not solely the whole wealth managed in the funds, but in addition the common wealth per capita reached a brand new peak, in the third quarter it reached HUF 1.7 million, 20 p.c increased than a 12 months earlier.

“Although the newest data additionally present that there’s an growing development amongst employers to take a accountable function with the future and security of their workers in thoughts, ÖPOSZ’s objective is to contain the employer aspect much more, since with out a robust employer background it isn’t nicely functioning supplementary pension system. That is why we initiated discussions with the Ministry of Economic Development about our bundle of proposals, compiled along with the Makronóm Institute, designed to strengthen self-care, one of the important instructions of which is to strengthen the function of employers, and thru this to extend the quantity of members,” stated Csaba Nagy, president of ÖPOSZ.

More and extra persons are becoming a member of well being funds

The quantity of members in the voluntary well being funds continued to develop, with 1.02 million members in the third quarter. The whole quantity of members of the well being and pension funds thus exceeded 2.06 million folks, which exceeds the degree of 2.04 million a 12 months earlier.

It would imply important potential for the medical insurance sector if the regulators had been to information employers again into the system, as these providers would then be accessible to those that are unable to avoid wasting themselves

– underlined the president of ÖPOSZ.

In the third quarter, the whole savings managed in the well being funds exceeded HUF 72.7 billion, which is greater than 16 p.c increased than a 12 months earlier. This speedy progress is primarily on account of the undeniable fact that members elevated their contributions by almost 20 p.c, however the quantities paid by employers additionally elevated – though solely at half the price.

The newest data from ÖPOSZ additionally verify that well being fund members are conscious of the versatile use of this type of self-care, which can also be supported by medical insurance reimbursement, and that they use it. This is indicated by the undeniable fact that along with the use of the common well being providers, further providers are additionally extraordinarily in style. For instance, the quantity of funds made for housing mortgage repayments elevated by greater than 54 p.c year-on-year, whereas service bills associated to kids elevated at a price of greater than 25 p.c.

Csaba Nagy believes that since the end-of-year fee interval associated to social safety reimbursement continues to be forward of us, it’s doubtless that the momentum of worker and employer contributions will stay in the fourth quarter. If these expectations are confirmed, the worth of pension fund funds this 12 months as an entire could exceed HUF 126 billion after final 12 months’s HUF 120 billion, and the whole worth of well being fund funds could enhance to over HUF 71 billion from HUF 59.3 billion in 2022.

Cover picture supply: Getty Images

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