FAQ

You may find more information about the voluntary pension fund sector, the operation of voluntary pension funds on the following portal operated by the MNB: Voluntary pension fund (available only in Hungarian language)

Pension benefits paid at regular intervals for a specified period of time (bank technical annuity) [Act XCVI of 1993 on Voluntary Mutual Insurance Funds Section 47 paragraph (6b) subparagraph a).]

A fund that limits the range of potential fund members in its bylaws based on some organizational principle (e.g. workplace) or condition (e.g. close relative of an employee).

A payment made by the fund member's employer to the voluntary pension fund.

An optional investment portfolio that takes environmental, social and governance (ESG) sustainability considerations into account when making investment decisions.

It is determined based on the inflation expectation included in the MNB's December Inflation Report of the current year, depending on the time remaining until retirement. It is used to determine the default value of the Net yield, the present value of future accumulation and annuity, and is also used for adjustment of the Net yield.

The fund member's own contribution to the voluntary pension fund.

The rise in the general price level.

The distribution of membership fees determines what proportion of the contributions is credited to the member's individual account and what proportion is deducted to finance their own operations and ensure liquidity. In the calculation, this is the cost ratio. Some funds determine a single deduction percentage regardless of the size of the contribution, while other funds apply a so-called degressive deduction. The latter means that contributions are placed in bands to which different, typically lower, deduction percentages apply, i.e. the higher the contribution made by the member within a given year, the lower the average deduction percentage applied. The funds determine the distribution of membership fees in their bylaws, which are available on their websites.

The rate of return calculated after deducting the costs associated with asset management from the profit made on investments.

Electronic administration interface provided for fund members.

A fund that does not limit the range of potential fund members.

A system operated by some voluntary pension funds that provide fund members a choice between several investment portfolios. Fund members may choose between the portfolios according to their risk tolerance and investment time frame (time remaining until retirement). You may find more information about the optional portfolio system on the portal operated by the MNB below: Optional portfolio system (available only in Hungarian language)

The past average inflation rate is the geometric average of the December/December inflation rate published by the Central Statistical Office (Központi Statisztikai Hivatal) for the past 10, 15 or 20 years (December/December inflation shows the change in the consumer price level in December of a given year compared to December of the previous year). The calculator uses the past average inflation rate for 10, 15 or 20 years depending on which net yield data is used (10, 15 or 20 years), which depends on the user's age and the time remaining until retirement.

Sharing fund savings between two optional investment portfolios. Portfolio sharing is only possible with funds that have an optional investment portfolio system, however, not all funds with an optional investment portfolio system offer such option.

The portfolio starting date on which the given fund portfolio was started. In certain cases, this may also indicate that the launch date of the optional investment portfolio system, or that a fund was merged at that time and the receiving fund manages the specific portfolio of the merging fund starting from this date. The source of the data is the data provided by the funds to the MNB.

Shows the current worth of a future sum of money, considering the projected inflation rate.

The minimum amount of membership fee set out in the fund’s bylaws, mandatory for all fund members (usually a monthly amount).

20% personal income tax refund after tax refund entitling fund payments (individual payment and employer contributions). The annual amount may not exceed HUF 150,000 and the amount of personal income tax paid in the previous year. The tax credit is remitted by the National Tax and Customs Administration (Nemzeti Adó- és Vámhivatal) to the voluntary fund account as stated in the personal income tax return. (The calculator does not take into account tax credit based on health and mutual aid fund contributions.)

The total cost rate (TKM) is an indicator calculated for pension fund products, in accordance with the MNB Recommendation No. 20/2019. (IX. 20.) on the calculation and publication of the total expense indicator of voluntary pension funds, which summarizes all expenses incurred by members in a single value. The TKM may be either 10, 20 or 30 years. Of these, the TKM value closest to the expected retirement year is presented (e.g. 10 years at 14 years, 20 years at 15 years).

In this case, depending on the regulations of the given fund, a yield deduction may be applied, therefore it is recommended to determine the amount of the Monthly planned individual payment in a way that the combined amount of the Monthly planned individual payment and the Monthly employer contribution exceeds the Standard membership fee of the given fund. If the combined amount of the Monthly planned individual payment and the Monthly employer contribution is lower than the Standard membership fee of the given fund, the calculator does not calculate a yield deduction.

After entering the year of birth, the calculator automatically fills in the Year of retirement field, assuming retirement at the age of 65. The user has the option to modify the Year of retirement field if they plan to retire in a year other than the automatically set date (e.g. preferential old-age pension for women). The calculator allows for retirement at the earliest age of 50 and at the latest age of 99, and the Year of retirement cannot be a past date.

The message may appear in the "How much pension supplement do I want?" type of calculation if the Monthly employer contribution and/or Current pension fund savings entered by the user would, even without individual payments, result in a higher Expected monthly annuity than the Expected monthly annuity entered by the user. In such a case, it is recommended to increase the Expected monthly annuity amount and initiate a new calculation.

The message may appear in the “How much pension supplement do I want?” type of calculation after pressing the Portfolio offer of the market button, for some funds or fund portfolios. It means that the Expected monthly annuity amount set by the user for the given fund or fund portfolio is too low, because the given Monthly employer contribution and/or Current pension fund savings would result in a higher Expected monthly annuity amount on its own, i.e. without individual payments, primarily due to the higher past yield performance. In such cases, the Initial monthly payment and the Credited rate of payments for these funds or fund portfolios are N/A (no data).