Orbán’s Inflation Sparks Cost-of-Living Crisis, Leaving Pensioners Struggling: Socialists
Opposition Party Proposes Measures to Boost Pensioners’ Purchasing Power
The Socialist party has recently submitted a resolution proposal aimed at increasing the purchasing power of pensions, according to the party’s deputy leader, Lajos Korózs. Speaking at an online press conference on Monday, Korózs criticized the government’s economic policies, which he claimed had led to a significant increase in living costs, resulting in what he referred to as “Orbán-inflation,” exceeding 20 percent over the past year. This situation has led to a cost-of-living crisis, with nearly half of the two million pensioners in Hungary receiving less than HUF 160,000 (EUR 430) per month.
To address this issue, the Socialists are proposing a return to the mixed indexation system for pensions. This approach considers both projected inflation and net wage increases in order to provide equitable adjustments. Korózs further emphasized the need to reinstate a ceiling for pension contribution payments. Given the polarization of pension benefits in recent years, the party suggests introducing a ceiling of one million forints for pension contributions.
In addition to these measures, the Socialists argue that everyone should receive a pension increase indexed to inflation but in accordance with the mixed indexation system over the next five years. The party also advocates for setting the old-age minimum pension at a minimum of 70 percent of the net minimum wage.
The resolution proposal aims to tackle the issue of pensioners struggling with their financial situation due to rising living costs. The Socialist party believes that implementing these measures will enhance the purchasing power of pensioners and alleviate the current cost-of-living crisis faced by many elderly citizens.
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