Magánnyugdíj

Magánnyugdíj, often translated as private pension or voluntary pension, refers to a supplementary retirement savings scheme available in Hungary. It is distinct from the state-funded social security pension system. Individuals can voluntarily contribute to private pension funds to build up additional savings for their retirement years, aiming to supplement their future state pension income.

These private pension funds are typically managed by specialized financial institutions. Contributions made by individuals are invested by these fund managers with the goal of generating returns over time. The accumulated assets, along with any investment profits, form the basis of the private pension that the individual will receive upon reaching retirement age.

There are often tax incentives associated with contributions to these private pension schemes, encouraging participation. For example, contributions may be eligible for tax deductions or tax credits, making them a more attractive option for long-term savings. The exact benefits and rules can vary, and it is advisable to consult with financial advisors or the pension fund providers for specific details. The objective of magánnyugdíj is to provide individuals with greater financial security and a higher standard of living during their retirement.