Nyugdíj

Nyugdíj is the regular income paid to a person after reaching a statutory age or meeting conditions for retirement. In Hungarian usage, as in many other countries, nyugdíj serves to replace a portion of a worker’s income after retirement. It can refer to several components: the state pension paid from the public social security system; supplementary or occupational pensions provided by employers or private entities; and, in some systems, voluntary private plans.

The state pension is usually financed on a pay-as-you-go basis, with current workers’ contributions funding current retirees. The amount generally depends on factors such as the length of service, earnings history, and a defined formula. Retirement age is typically fixed by law, though many systems allow earlier or later retirement with adjustments to benefits, and may be linked to life expectancy.

Eligibility rules vary by country and sometimes by gender or occupation. Most systems require a minimum number of contribution years and a minimum age. Early retirement options may be available but often with reduced benefits. In addition to retirement pensions, social security systems may provide disability pensions and survivors’ benefits.

Pension reform has been common in many countries to address aging populations, including adjustments to retirement age, benefit calculation, and the role of private pension schemes. The comparative design of nyugdíj systems reflects trade-offs between adequacy of income, financial sustainability, and incentives to work.

For individuals, planning for nyugdíj often involves understanding current entitlements, potential future changes in the law, and opportunities for voluntary private savings to supplement the state pension.