General information
The primary goal of the MNB Voluntary Pension Fund Calculator (calculator) is to assist users in planning their voluntary pension fund savings, to facilitate the choice between institutions, and to make the specifics of the sector easier to understand. The calculator provides useful information to support self-provision for users who either own or do not own a voluntary pension fund account.
Please note that the calculation results are for informational purposes only! The calculated results are based on estimates and cannot be guaranteed to be achieved in the future!
When choosing between funds and fund portfolios, it is recommended to consider the risk of the investments, the time remaining until retirement, and the user's own risk tolerance. We recommend that you also inform yourself based on publicly available information on the funds' websites, bylaws, and investment policies.
How does the calculator work?
1. „How much pension supplement do I want?”
The user specifies the amount of annuity (bank technical annuity, pension supplement) they would like to receive monthly after retirement, and the calculator calculates the amount of the monthly payment required for that amount.
The user may enter the following data:
Expected monthly annuity: The amount that the user wishes to withdraw as a monthly annuity (pension supplement) after retirement. The default is 50,000 HUF, the amount is adjustable. Required field.
Planned duration of annuity: The period for which the user wishes to receive the Expected monthly annuity after retirement. The default is 10 years, additional options may be selected from the drop-down list: 5 years, 15 years or 20 years.
Year of birth: The year of the user's birth. The year may be entered by clicking on the calendar icon or by entering it manually. Required field.
Year of retirement: The field is automatically filled based on the Year of birth field, assuming retirement at age 65. Its value is adjustable by clicking on the calendar icon or by entering it manually. (Minimum and maximum values: birth year + 50 years and birth year + 99 years)
Annual growth rate of payments: the annual growth rate of the Initial monthly payment (its value is calculated during the calculation) and the Monthly employer contribution until retirement. By default, it is 3%, and the value is adjustable between 0% and 6% with an accuracy of two decimal places. Example: In the case of a 3% value and an Initial monthly payment and Monthly employer contribution of HUF 10,000-10,000, the calculator calculates HUF 10,300 in the second year of payment, and each year a payment that is 3% higher than the previous year for both payment types is considered.
Net yield: The member’s share of the average annual yield achieved on investments (after deduction of asset management related expenses) from the year of calculation to the year of retirement. Its value is adjustable between 0% and 9%, with an accuracy of two decimal places. By default, it is the expected average annual inflation rate calculated until retirement – determined based on the December Inflation Report of the MNB – increased by an assumed real yield of 1%.
Is tax credit applicable?: If the user pays personal income tax, they are eligible for a 20% tax credit after a maximum annual contribution of HUF 750,000 to a voluntary pension fund. By default, the checkbox (☑) is checked, which means that the user is eligible for tax credit. If the check is removed, the calculator will not take tax credit into account.
Monthly employer contribution (if applicable): If the user's employer makes voluntary pension fund contributions for the employee, it is possible to enter the relevant amount. It is not filled by default. If the annual growth rate of payments is higher than 0% (maximum 6%), then the value of the Monthly employer contribution will also increase by the specified percentage each year.
Do you have an existing voluntary pension fund membership?: If the user has a voluntary pension fund membership, there is an option to take this into account in the calculation. By default, the checkbox (☑) is not checked, which means that the user does not have a voluntary pension fund membership.
Current pension fund savings: If you tick the box “Do you have an existing voluntary pension fund membership?”, you may enter the amount of your current pension fund savings (HUF) in this field. (The amount cannot be broken down into capital, yield, or tax credit.)
By pressing the CALCULATION button, the calculator calculates the following data:
Initial monthly payment: The amount that the user must pay individually monthly, starting from the month in which the calculation is performed, to reach the Expected monthly annuity at retirement based on the specified input parameters. If the annual growth rate of payments is set to 0%, then the same amount must be paid every month until retirement.
Savings at retirement: The lump-sum saving amount that the user will achieve upon retirement, calculated using the specified input parameters.
Present value of Expected monthly annuity: The calculator calculates how much the amount entered in the Expected monthly annuity field (future monthly annuity) will be worth in the calculation year, considering the expected inflation until retirement.
Present value of savings at retirement: The calculator calculates how much the future savings amount received in the Savings at retirement field will be worth in the year of the calculation, considering the expected inflation until retirement.
Components of savings at retirement: The value obtained in the Savings at Retirement field is broken down as follows:
• Capital part of savings: The amount credited to the individual account from the individual payment paid by the user and the employer contribution.
• Yield part of savings: Yield performance calculated for the capital part, the tax credit part and the accumulated voluntary pension fund savings part based on the net yield specified in the input data.
• Savings from tax credit: The tax credit received after the individual payment paid by the user (Initial monthly payment) and the Monthly employer contribution. The maximum amount of this is 150,000 HUF after an annual payment of 750,000 HUF. (If the “Is tax credit applicable?” checkbox (☑) is not checked, its value is zero.)
• Previously accumulated pension fund savings: The amount entered in the Current pension fund savings field.
Below the calculated data, a diagram shows the development of the components of savings over time up to the date of retirement. Dark blue represents the previously accumulated pension fund savings (if any), light blue represents the capital part of savings, dark yellow represents the yield part of savings, and light yellow represents the part of the savings from tax credit.
In the calculator, the monthly payments are reduced each month by an average, sector-level operating and liquidity expense deduction. The expense deduction is calculated from the quarterly supervisory data reports submitted by the funds to the MNB for the year preceding the current year. The data used in the calculation is updated annually, no later than March 30.
The calculator considers the amount of tax credit validated based on the field Is tax credit applicable? annually in May of the year following the year in question. From this date on, the calculator also calculates yield on the amount of the tax credit according to the entered parameter.
Based on the principle of prudence, the calculator calculates the annuity calculation (bank technical annuity) [Act XCVI of 1993 on Voluntary Mutual Insurance Funds Section 47 paragraph (6B) subparagraph a).] with a technical interest rate of 0% (no yield is calculated during the annuity payment period, in line with the practice common in the pension fund market). A given pension fund may also apply an interest rate different from the technical interest rate given in the calculator for the annuity calculation.
By pressing the PORTFOLIO OFFER OF THE MARKET button, the calculator will list all portfolios of all operating voluntary pension funds in alphabetical order based on the name of the fund. The resulting list may be downloaded in Excel and PDF format.
The calculator lists open funds by default, but data of closed funds may also be displayed by checking the relevant checkbox (☑). It is also possible to select one or more funds using a filter, where only the data of the selected funds and fund portfolios will be displayed. If the checkbox (☑) next to closed funds is not checked, the fund filter will not display closed funds either.
The results may be sorted by several criteria: by fund name A-Z (in ascending Alphabetical order), by fund name Z-A (in descending Alphabetical order), by initial monthly payment ascending.
The calculator considers the past yield performance (average annual net yield calculated over a period of 10, 15 or 20 years) for each fund portfolio, depending on the time remaining until retirement. If the user's time remaining until retirement is less than 12.5 years, the calculation is made using the average annual net yield calculated over a period of 10 years, between 12.5 and 17.5 years, the 15-year average is used, and if it is over 17.5 years, the 20-year average is used. The average annual net yield calculated over a period of 10, 15 and 20 years is updated annually, no later than March 30.
The 10-, 15- and 20-year net yield is adjusted by the ratio of the expected future average inflation to the average past inflation in order to filter out the effect of inflation changes. The calculator calculates the expected future average inflation based on the MNB's December Inflation Report for the reporting year, the data is updated annually, no later than March 30. The average past inflation was determined based on data from the Central Statistical Office of Hungary, the data is updated annually, no later than March 30.
The funds determine the membership fee distribution ratios in their bylaws, which show what proportion of the fund payments is credited to the member's account and what proportion is deducted to finance their own operations and create a liquidity reserve (expense deduction ratio). The calculator assigns these individual membership fee distribution ratios to each fund, which differ from fund to fund. Please note that the calculator considers changes to the expense deduction ratios set out in the fund's bylaws after the change comes into force - after the fund’s notification of the MNB!
The data presented together with the calculation results for individual funds and fund portfolios are as follows:
Initial monthly payment: The amount that the user must pay individually monthly, starting from the month in which the calculation is performed, to reach the Expected monthly annuity at retirement based on the specified input parameters. Its value varies from fund to fund and portfolio to portfolio due to different expense ratios and past yield performance.
Credited rate of payments: Determines what percentage of the payments received at a given fund will be credited to the customer's account.
TKMNYP: An indicator calculated for a voluntary pension fund product that summarizes in a single value the total annual average expenses incurred by members for a given period, calculated using a uniform method for all funds. The TKMNYP may be either 10, 20 or 30 years. Of these, the TKMNYP value presented is closest to the time remaining until retirement for the user (10-year TKMNYP for 15 years, 20-year TKMNYP for 15-25 years, 30-year TKMNYP for over 25 years). Informational data, the calculator does not calculate the TKMNYP value. The data used in the calculation, derived from supervisory data provided to the MNB, is updated annually, no later than March 30.
Net yield: The member’s share of the average annual yield achieved on investments (after deduction of asset management related expenses) from the year of calculation to the year of retirement. The net yield may be either 10, 15 or 20 years. Of these, the net yield value that is closest to the user's time remaining until retirement is presented (10-year net rate of return for up to 12.5 years, 15-year net rate of return for 12.5-17.5 years, 20-year net rate of return for over 17.5 years).
More information: The following fund-specific information is available in the More Information drop-down window: Fund type (Open or Closed), Optional portfolio system (Yes or No), Online member portal (Yes or No), Portfolio sharing option (Yes or No), ESG portfolio option (Yes or No), Standard membership fee (HUF).
The tooltip icon (blue circle with a white "i" inside) next to the name of the fund or fund portfolio contains the portfolio starting date.
The name of the fund may include a link to its website, where users may receive a summary of introductory information about the services provided and the information deemed important by the fund.
Please note that if the combined amount of the Initial monthly payment and the Monthly employer contribution do not reach the standard membership fee for a given fund, a yield deduction may be enforced.
If the calculation (How much pension supplement do I want?) does not run and the following message is displayed: "The amount of the Expected monthly annuity entered is too low! Increase its value for the calculation to run successfully!", it means the following: the amount of the Expected monthly annuity entered by the user is too low, since the entered Monthly employer contribution and/or Current pension fund savings would result in a higher Expected monthly annuity. In this case, it is recommended to enter a higher Expected monthly annuity and run the calculation again.
If the calculation (How much pension supplement do I want?) runs, but when viewing the Portfolio offer of the market, we encounter the message "In the case of the portfolio, no individual payment is required in addition to the current input data to achieve the specified Expected monthly annuity." for certain funds or fund portfolios, it means the following: the Expected monthly annuity amount 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 in itself, primarily due to the higher past yield. In such cases, the Initial monthly payment and Credited rate of payments for these funds or fund portfolios are N/A (no data).
2. „How much can I save?”
The user specifies the amount they wish to spend on voluntary pension fund savings each month, and the calculator calculates the savings accumulated until retirement and the monthly annuity (pension supplement) after retirement.
The user may enter the following data:
Monthly planned individual payment: The amount that the user wishes to pay into their voluntary pension fund account monthly. The default is 25,000 HUF, but the amount is adjustable. Required field.
Monthly employer contribution (if applicable): If the user's employer makes voluntary pension fund contributions for the employee, it is possible to enter the relevant amount. It is not filled by default. If the annual growth rate of Payments is higher than 0% (maximum 6%), then the value of the Monthly employer contribution will also increase by the specified percentage each year.
Year of birth: The year of the user's birth. The year may be entered by clicking on the calendar icon or by entering it manually. Required field.
Year of retirement: The field is automatically filled based on the Year of birth field, assuming retirement at age 65. Its value is adjustable by clicking on the calendar icon or by manual entry. (Minimum and maximum values: birth year + 50 years and birth year + 99 years)
Annual growth rate of payments: The annual growth rate of the Monthly planned individual payment and the Monthly employer contribution until retirement. By default, it is 3%, and the value is adjustable between 0% and 6% with an accuracy of two decimal places. Example: In the case of a 3% value and an Initial monthly payment and Monthly employer contribution of HUF 10,000-10,000, the calculator calculates HUF 10,300 in the second year of payment, and each year a payment that is 3% higher than the previous year for both payment types is considered.
Net yield: The member’s share of the average annual yield achieved on investments (after deduction of asset management related expenses) from the year of calculation to the year of retirement. Its value is adjustable between 0% and 9%, with an accuracy of two decimal places. By default, it is the expected average annual inflation rate calculated until retirement – determined based on the December Inflation Report of the MNB – increased by an assumed real yield of 1%.
Is tax credit applicable?: If the user pays personal income tax, they are eligible for a 20% tax credit after a maximum annual contribution of HUF 750,000 to a voluntary pension fund. By default, the checkbox (☑) is checked, which means that the user is eligible for tax credit. If the check is removed, the calculator will not take tax credit into account.
Planned duration of annuity: The period for which the user wishes to receive the Expected monthly annuity after retirement. The default is 10 years, additional options may be selected from the drop-down list: 5 years, 15 years or 20 years.
Do you have an existing voluntary pension fund membership?: If the user has a voluntary pension fund membership, there is an option to take this into account in the calculation. By default, the checkbox (☑) is not checked, which means that the user does not have a voluntary pension fund membership.
Current pension fund savings: If you tick the box “Do you have an existing voluntary pension fund membership?”, you may enter the amount of your current pension fund savings (HUF) in this field. (The amount cannot be broken down into capital, yield, or tax credit.)
By pressing the CALCULATION button, the calculator calculates the following data:
Monthly annuity: Monthly annuity (pension supplement) calculated for the period given by the user (5, 10, 15 or 20 years) after retirement.
Savings at retirement: The lump-sum saving amount that the user will achieve upon retirement, calculated using the specified input parameters.
Present value of monthly annuity: The calculator calculates how much the Monthly Annuity will be worth in the calculation year, considering the expected inflation until retirement.
Present value of savings at retirement: The calculator calculates how much the future savings amount received in the Savings at retirement field will be worth in the year of the calculation, considering the expected inflation until retirement.
Components of savings at retirement: The value obtained in the Savings at Retirement field is broken down as follows:
• Capital part of savings: The amount credited to the individual account from the individual payment paid by the user and the employer contribution.
• Yield part of savings: Yield performance calculated for the capital part, the tax credit part and the accumulated voluntary pension fund savings part based on the Net yield specified in the input data.
• Savings from tax credit: The tax credit received after the individual payment paid by the user (Initial monthly payment) and the Monthly employer contribution. The maximum amount of this is 150,000 HUF after an annual payment of 750,000 HUF. (If the “Is tax credit applicable?” checkbox (☑) is not checked, its value is zero.)
• Previously accumulated pension fund savings: The amount entered in the Current pension fund savings field.
Below the calculated data, a diagram shows the development of the components of savings over time up to the date of retirement. Dark blue represents the previously accumulated pension fund savings (if any), light blue represents the capital part of savings, dark yellow represents the yield part of savings, and light yellow represents the part of the savings from tax credit.
In the calculator, the monthly payments are reduced each month by an average, sector-level operating and liquidity expense deduction. The expense deduction is calculated from the quarterly supervisory data reports submitted by the funds to the MNB for the year preceding the reporting year. The data used in the calculation is updated annually, no later than March 30.
The calculator considers the amount of the tax credit validated based on the field Is tax credit applicable? annually in May of the year following the reporting year. From this date on, the calculator also calculates yield on the amount of the tax credit according to the entered parameter.
Based on the principle of prudence, the calculator calculates the annuity calculation (bank technical annuity) [Act XCVI of 1993 on Voluntary Mutual Insurance Funds Section 47 paragraph (6B) subparagraph a).] with a technical interest rate of 0% (it does not calculate yield during the annuity payment period, in line with the practice common in the pension fund market). A given pension fund may also apply an interest rate different from the technical interest rate given in the calculator for the annuity calculation.
By pressing the PORTFOLIO OFFER OF THE MARKET button, the calculator will list all portfolios of all operating voluntary pension funds in alphabetical order based on the name of the fund. The resulting list may be downloaded in Excel and PDF format.
The calculator lists open funds by default, but data of closed funds may also be displayed by checking the relevant checkbox (☑) It is also possible to select one or more funds using a filter, where only the data of the selected funds and fund portfolios will be displayed. If the checkbox (☑) next to closed funds is not checked, the fund filter will not display closed funds either.
The results may be sorted by several criteria: by fund name A-Z (in ascending Alphabetical order), by fund name Z-A (in descending Alphabetical order), by monthly annuity descending, by savings at retirement descending.
The calculator considers the past yield performance (average annual net yield calculated over a period of 10, 15 or 20 years) for each fund portfolio, depending on the time remaining until retirement. If the user's time remaining until retirement is less than 12.5 years, the calculation is made using the average annual net yield calculated over a period of 10 years, between 12.5 and 17.5 years, the 15-year average is used, and if it is over 17.5 years, the 20-year average is used. The average annual net yield calculated over a period of 10, 15 and 20 years is updated annually, no later than March 30.
The 10-, 15- and 20-year net yield is adjusted by the ratio of the expected future average inflation to the average past inflation in order to filter out the effect of inflation changes. The calculator calculates the expected future average inflation based on the MNB's December Inflation Report for the reporting year, the data is updated annually, no later than March 30. The average past inflation was determined based on data from the Central Statistical Office of Hungary, the data is updated annually, no later than March 30.
The funds determine the membership fee distribution ratios in their bylaws, which show what proportion of the fund payments is credited to the member's account and what proportion is deducted to finance their own operations and create a liquidity reserve (expense deduction ratio). The calculator assigns these individual membership fee distribution ratios to each fund, which differ from fund to fund. Please note that the calculator considers changes to the expense deduction ratios set out in the fund's bylaws after the change comes into force - after the fund’s notification of the MNB!
The data presented together with the calculation results for individual funds and fund portfolios are as follows:
Savings at retirement: The lump-sum saving amount that the user will achieve upon retirement, calculated using the specified input parameters and based on fund-specific data (net yield and membership fee distribution).
Monthly annuity: Monthly annuity (pension supplement) calculated for the period given by the user (5, 10, 15 or 20 years) after retirement. Its value varies from fund to fund and portfolio to portfolio due to different expense ratios and past yield performance.
Credited rate of payments: Determines what percentage of the payments received at a given fund will be credited to the customer's account.
TKMNYP: An indicator calculated for a voluntary pension fund product that summarizes in a single value the total annual average expenses incurred by members for a given period, calculated using a uniform method for all funds. The TKMNYP may be either 10, 20 or 30 years. Of these, the TKMNYP value presented is closest to the time remaining until retirement for the user (10-year TKMNYP for 15 years, 20-year TKMNYP for 15-25 years, 30-year TKMNYP for over 25 years). Informational data, the calculator does not calculate the TKMNYP value. The data used in the calculation, derived from supervisory data provided to the MNB, is updated annually, no later than March 30.
Net yield: The member’s share of the average annual yield achieved on investments (after deduction of asset management related expenses) from the year of calculation to the year of retirement. The net yield may be either 10, 15 or 20 years. Of these, the net yield value closest to the user's time remaining until retirement is presented (10-year net rate of return for up to 12.5 years, 15-year net rate of return for 12.5-17.5 years, 20-year net rate of return for over 17.5 years).
More information: The following fund-specific information is available in the More Information drop-down window: Fund type (Open or Closed), Optional portfolio system (Yes or No), Online member portal (Yes or No), Portfolio sharing option (Yes or No), ESG portfolio option (Yes or No), Standard membership fee (HUF).
The tooltip icon (blue circle with a white "i" inside) next to the name of the fund or fund portfolio contains the portfolio starting date.
The name of the fund may include a link to its website, where users may receive a summary of introductory information about the services provided and the information deemed important by the fund.
Please note that if the combined amount of the Initial monthly payment and the Monthly employer contribution do not reach the standard membership fee for a given fund, a yield deduction may be enforced.