Potential Shift of HUF 150–200 Billion from Pension Funds for Housing Purposes
A report highlights the impact of recent changes allowing pension savings for residential investments.
In its first quarterly report for 2025, the National Association of Voluntary Pension Funds (ÖPOSZ) addressed the new opportunity announced earlier this year, which permits tax-free withdrawals from voluntary pension fund savings for housing-related purposes.
This development allows members to utilize their savings for specified housing purposes.
Across the entirety of the pension fund sector, which includes funds not affiliated with the Pension Fund Association, data shows that:
- 1.5 percent of the membership has taken advantage of this opportunity.
- Approximately 1.5 to 1.6 percent of the total assets were requested for withdrawal, amounting to 36 billion HUF out of roughly 2,300 billion HUF in total assets during the first three months of the year.
At the beginning of the year, prepayment and final repayment of mortgage loans were the most popular uses for the funds.
However, interest in home renovations is expected to increase in the spring.
Based on current demands and anticipated interest, ÖPOSZ estimates that members may allocate a total of 150 to 200 billion HUF from retirement savings annually towards housing-related goals.
The government’s objective at the time of announcing this new option was to encourage the mobilization of approximately 300 billion HUF in savings towards the real estate market.
Lajos Mohr, president of ÖPOSZ, emphasized that "the positive returns and the rising contributions from both members and employers have effectively offset the withdrawals made for housing purposes in the first quarter, as well as other disbursements to the members of the pension funds."
Sector analysis revealed:
- The growth of membership in voluntary pension and health funds continued.
- Contributions made by pension fund members reached a new peak.
- Despite this growth, the increase in pension fund assets has been tempered by withdrawals for housing-related purposes.
- Within the health fund services, the largest increase was noted in payments related to the repayment of housing loans.
Discussions among experts indicate the need for government reforms in health funds to enhance their appeal to both clients and providers.
This development allows members to utilize their savings for specified housing purposes.
Across the entirety of the pension fund sector, which includes funds not affiliated with the Pension Fund Association, data shows that:
- 1.5 percent of the membership has taken advantage of this opportunity.
- Approximately 1.5 to 1.6 percent of the total assets were requested for withdrawal, amounting to 36 billion HUF out of roughly 2,300 billion HUF in total assets during the first three months of the year.
At the beginning of the year, prepayment and final repayment of mortgage loans were the most popular uses for the funds.
However, interest in home renovations is expected to increase in the spring.
Based on current demands and anticipated interest, ÖPOSZ estimates that members may allocate a total of 150 to 200 billion HUF from retirement savings annually towards housing-related goals.
The government’s objective at the time of announcing this new option was to encourage the mobilization of approximately 300 billion HUF in savings towards the real estate market.
Lajos Mohr, president of ÖPOSZ, emphasized that "the positive returns and the rising contributions from both members and employers have effectively offset the withdrawals made for housing purposes in the first quarter, as well as other disbursements to the members of the pension funds."
Sector analysis revealed:
- The growth of membership in voluntary pension and health funds continued.
- Contributions made by pension fund members reached a new peak.
- Despite this growth, the increase in pension fund assets has been tempered by withdrawals for housing-related purposes.
- Within the health fund services, the largest increase was noted in payments related to the repayment of housing loans.
Discussions among experts indicate the need for government reforms in health funds to enhance their appeal to both clients and providers.
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