Hungarian workers to retire later amid savings fears

According to an international survey, one in five Hungarian workers say they don't expect to retire from work until after the age of 65, while a similar number believe they will have sufficient savings to retire comfortably.

The survey, by global recruitment firm Kelly Services, found that 31% of people believe they will need to rely on a government pension or social security after they retire.

The global survey sought the views of 115,000 people in 33 countries including more than 4,000 in Hungary.

Kelly Services Managing Director Aniko Jonas said the survey shows that many people are planning to work for longer as part of a broader movement away from the traditional idea of absolute retirement from the workforce.

"Increasingly, we see that people will continue in some form of employment, either working part time, doing consultancy work or starting up a business.

"The idea that one day you are a full time employee and the next you are a full time retiree is becoming a thing of the past.

"The global shortage of skilled workers means that many of these people are in high demand as organisations try to retain their skills and keep them engaged in the workforce for longer.

Amongst the key findings of the survey:

• 80% of respondents plan to retire by age 65, with 20% planning to work beyond 65 years of age
• Only 19% believe they will have enough savings to retire comfortably
• 31% believe they will need to rely on a pension or social security after they retire
• 64% say they would accept an offer to continue working at the time of retirement
• 19%  say they could easily find a job after retirement

More Hungarian males (25%) believe they will have sufficient savings to retire comfortably than females (15%). Males were also more confident they could find a job after retirement than females.

When asked how they would supplement their income after retirement, 29% would seek permanent part time work, 17% said they would start a business and 15% would look for temporary or contract work.

Interestingly, of those who would accept the offer of continuing work with their employer after retirement, many would not be doing it solely for the money. A total of 45% said their motivation would be to keep active, 43% would do it for the income and 7% out of a sense of loyalty.

The question of where people would choose to live after retirement produced mixed feelings.  A total of 40% plan to stay in the same town/city; 11% would live in a different town/city; 9% would shift to a different country and 39% were undecided.

The survey highlights the changing way that people are approaching retirement in the face of concerns over the quality of life post-retirement, and a global war for talent that means many of those at retiring age have skills that are in strong demand.

"We are increasingly seeing people planning their retirement as a transition from the workforce, rather than an abrupt lifestyle change.

"For some, it will be necessary to continue some form of work to maintain their quality of life.  Others will find that staying engaged in the workforce helps to keep them healthy and active.

"Retirees have become a new source of untapped labour for organisations struggling to fill skilled vacancies from a tight labour market. "For these people, they will be able to leverage their skills into areas that fit with their lifestyle and provide an income stream after they have ceased full time work," Aniko Jonas said.

About Kelly Services
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a world leader in human resources solutions headquartered in Troy, Michigan, offering temporary staffing services, outsourcing, vendor on-site and full-time placement to clients on a global basis.  Kelly provides employment to more than 750,000 employees annually, with skills including office services, accounting, engineering, information technology, law, science, marketing, creative services, light industrial, education, and health care.  Revenue in 2007 was $5.7 billion.  Visit www.kellyservices.com.

Media contact: 

Aniko Jonas

General manager

email: ajonas@kellyservices.hu
tel: 06-1/354-2770