Abstract
Abstract Background: The area of pension expectations in Hungary is barely researched. However, the importance of adequate financial literacy and self-provision is becoming obvious at the economic, the decision-making, and the individual level. Objectives: Our research is conducted to investigate state pension expectations and certain aspects of financial literacy of the young generation, and to find a behavioral explanation for their pessimistic attitude. Methods/Approach: Using a 14-question questionnaire, we collected answers from Hungarian financially educated, young people. Two hypotheses were investigated by the Principal Component Analysis (PCA). Besides, a comparative analysis was conducted to connect the survey results with the ten instincts published by Hans Rosling in his book ‘Factfulness’. Results: The outcomes are in harmony with prior expectations, i.e. i) students in finance major are aware of the connection between a longer working period and a higher retirement income; and ii) despite the unisex pension scheme there are gender differences in the expected pension age. In the comparative analysis with ‘Factfulness’, we identified five instincts that lie behind the general pessimism of respondents. Conclusions: State pension expectations of the Hungarian young generation are overly pessimistic, the same attitude being found in international literature, as well. Pessimistic expectations can be explained using some of the ten instincts by Rosling.
Highlights
We formed four questions : (i) how likely it is to receive governmentprovided social security retirement benefits, (ii) is this likelihood different for their peers, (Iii) what reasons lie behind their negative attitude – if any, and (iv) the level of trust they have that the government will provide future promised social security retirement benefits? In general, young people have negative expectations as to whether they will receive a state pension upon reaching the retirement age
We explored survey data collected among Hungarian university students about their future state pension expectations
We found that most of the respondents are characterized by a general pessimism, and despite the unisex pension scheme, male participants expect a later retirement age
Summary
The main purpose of this study is to explore the pension expectations of the Hungarian young generation and to find the behavioral aspects behind their attitude using Hans Rosling’s book ‘Factfulness’. This paper investigates a similar question: why young people determine social security benefits after retirement to be much worse than they might be. Objectives: Our research is conducted to investigate state pension expectations and certain aspects of financial literacy of the young generation, and to find a behavioral explanation for their pessimistic attitude. A comparative analysis was conducted to connect the survey results with the ten instincts published by Hans Rosling in his book ‘Factfulness’. Conclusions: State pension expectations of the Hungarian young generation are overly pessimistic, the same attitude being found in international literature, as well.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
