In April 2026, Hungary held an election that changed the governing party after 16 years. The country elected the Tisza Party, led by Peter Magyar. The election ended 16 years of Fidesz-led government. Fidesz, a right-wing political party, governed Hungary for 16 years before the 2026 election. Its record included controversial decisions on public spending, health care and education, as well as disputes with the European Union over funding and governance. The European Union withheld portions of Hungary’s funding over concerns about compliance with EU requirements, and Hungary lost access to more than €1 billion in funds in early 2026. Hungary’s pension system faces longstanding challenges, including low pensions for some retirees and the legacy of irregular employment and underreported wages. One group that has experienced particularly serious effects is the elderly, many of whom live in pensioner poverty.

Explaining the Issue: Those Affected

Many Hungarians have worked on farms and in factories throughout their lives to make ends meet. However, after retirement, many live below the established poverty line.

Some people in Hungary receive pensions far below the country’s at-risk-of-poverty threshold. Around 23% of pensioners receive a monthly income below the official at-risk-of-poverty line. According to Human Rights Watch’s analysis of official Hungarian Central Statistical Office data, the at-risk-of-poverty rate among people aged 65 and over increased from 6.3% in 2018 to 16.1% in 2023.

Poverty rates among elderly women are even higher. Historically, women in Hungary earned less than men while performing the same or similar jobs. As a result, women often receive lower pensions after retirement.

Women in Hungary also tend to live longer than men. This means that female pensioners may have to live on a lower income for a longer period during their later years.

These factors have contributed to the growth of pensioner poverty in Hungary and have left many elderly people struggling to afford basic living costs.

Fidesz Government Policies, Funding and Inflation

Hungary gained independence from the Soviet Union between 1990 and 1991. The reporting of wages and the payment of social contributions can affect the pensions workers receive in retirement. Workers whose official earnings are recorded at lower levels may consequently receive lower pensions.

Between 2009 and 2011, the government introduced changes to the national private pension system as a way to strengthen the system. However, the government implemented these changes quickly, which left gaps in the system. As a result, some of the reforms failed to provide sufficient support to those most affected.

In 2009, Fidesz also stopped using the “Swiss indexation” method to increase pensions. This system based pension increases partly on wage growth. Instead, the government introduced an indexation system based on inflation.

These decisions contributed to future economic inequality, particularly between people receiving low fixed-income pensions and current workers and recent retirees who receive higher incomes.

Inflation has also had a direct connection to the increase in pensioner poverty in Hungary. Inflation surged between 2022 and 2023, putting additional pressure on pensioners who already relied on limited fixed incomes.

To combat rising costs, the Fidesz government introduced measures such as gas price controls and food price controls in 2023 and 2025. However, price controls may have limited effectiveness if businesses increase prices on other goods or services to offset their costs.

What the New Tisza Government Plans to Do

On May 25, 2026, Peter Magyar announced plans to support 1.3 million elderly Hungarians on the lowest pension incomes. According to Human Rights Watch, the proposed SZÉP-card support represents the government’s first step toward addressing pensioner poverty. The prepaid cards are intended to help recipients cover basic needs, including food and domestic travel. Magyar has also pledged to increase pensions for people receiving less than 500,000 HUF per month, prioritizing those receiving less than 250,000 HUF. The government’s manifesto also proposes raising the minimum monthly pension to 120,000 HUF. However, this proposed amount would remain below the at-risk-of-poverty threshold.

The extent to which these measures will reduce pensioner poverty remains uncertain. These proposals are intended to provide additional financial support to pensioners on the lowest incomes. However, their impact on pensioner poverty will depend on their implementation and whether the support is sufficient to help recipients meet their basic living costs.

What is Still Needed to Address Pensioner Poverty in Hungary?

Although the Tisza government’s proposed measures aim to provide additional support for pensioners, it remains to be seen whether they will significantly reduce pensioner poverty. Deeper reforms may also be needed to address the structural issues within Hungary’s pension system.

Human Rights Watch argues that structural pension reform is needed alongside short-term payments to improve social security and adequate living standards for older people.

A new pension indexation system could also help protect pensioners from future increases in inflation and living costs. Long-term reform will need to address the underlying weaknesses within the pension system so that fewer elderly Hungarians live below the at-risk-of-poverty threshold.

– Georgina Harrison

Georgina is based in London, UK and focuses on Politics for The Borgen Project.

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