Valuation of the Hungarian Pension System

10 Pages Posted: 26 Jan 2012

Date Written: January 25, 2012


This paper takes a look at certain results of the modelling side of the Hungarian pension reform. Preparations are underway to implement actuarial modelling of pension liabilities for the government. The objective is to understand how the state might face challenges of the present pay-as-you-go pension system. Flat-rate pension, point system and notional defined contribution (NDC) as possible suggestions are reviewed in order to stop increase of public debt in the course of this century. Based on the investigations done in the last two years the sharpest problems for Hungary are the low activity ratios and the short working period.

Keywords: Social Security and Public Pension, Deficits and Debt, Retirement

JEL Classification: H55, H68, J26

Suggested Citation

Kovács, Erzsébet, Valuation of the Hungarian Pension System (January 25, 2012). Available at SSRN: or

Erzsébet Kovács (Contact Author)

Corvinus University of Budapest ( email )


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