Why Alfa VPF?
With over 161 thousand members and assets exceeding HUF 242 billion, Alfa Voluntary Pension Fund is one of the leading funds in Hungary.
It is backed up financially and professionally by Vienna Insurance Group, one of the largest life and pension insurers of Hungary.
The voluntary fund system is not part of the obligatory social security system. You can pay membership fee to the voluntary fund account from your net salary, with a frequency and in an amount matching your own needs. This form of saving provides an optimal solution to those who aim to ensure long-term pension savings and conscious self-care.
You are entitled to a tax refund of 20% on your payments (individual deposits, company donations and contributions too).
Yields generated on your voluntary fund account are tax-free, thus there is no interest tax on them either.
You can designate beneficiaries for the assets accumulated on your voluntary pension fund account, that way you can support not only yourself, but also your loved ones.
Supplement your pension fund savings from your deducted personal income tax!
One of the great benefits of your voluntary fund savings is that you are entitled to a refund of 20% from your personal income tax; i.e. the state will increase the savings on your fund account by this amount. According to the laws in effect, the upper limit of the tax-refund is HUF 150,000 if you don’t request any tax-refund, based on your health fund payments in the given tax year. If the individual requests tax-refund in his/her voluntary fund, pension pre-saving account and pension insurance statement, then the total refund may not exceed HUF 280,000. The refund is not limited by income!
What kinds of investment portfolios are available?
If you retire less than 3 years or wish to use the savings within 3 years and prioritise safety is recommended to you.
It consists of short-term Hungarian government bonds, discount treasury bills. Its objective is to preserve the value of the savings by selecting the safest securities.
Composition:
If you retire within 5 years, our low risk portfolio is recommended to you.
It almost exclusively consists of government securities, so the value of the savings will increase steadily depending on the market conditions. Its objective is to preserve the value of the payments and to achieve above inflation returns.
Asset ratio: 7%
Composition:
If you have 5-15 years until retirement, it is a good idea to choose from among our medium risk portfolios.
Its objective is to achieve higher returns in the medium and long term. A substantial part of it consists of government securities in order to mitigate investment risks.
Asset ratio: 62%
Composition:
If the time remaining until retirement is more than 15 years, it is worth choosing portfolios of higher risk which allow you to achieve higher returns.
This portfolio contains the shares of well-capitalized domestic and international companies with opportunities to grow.
Asset ratio: 16%
Composition:
If you have 5-15 years until retirement, it is a good idea to choose from among our medium risk portfolios.
The composition of the portfolio, i.e. the ratio of stocks and bonds is not fix. The asset manager dynamically changes the composition according to the market trends in order to achieve higher returns in medium and long term than in case of risk-free investments.
Medium-high risk portfolio
Asset ratio: 11%
If the time remaining until retirement is more than 15 years, it is worth choosing portfolios of higher risk which allow you to achieve higher returns.
Be involved in the major trends of global capital markets – demographic changes, renewable resources, innovation!
Asset ratio: 4%
Composition:
* This is the Basic Portfolio in which we place the investment of members who do not choose a portfolio.
Gradually decreasing cost deduction
Costs decrease gradually as the amount invested grows. It means that cost deduction is lower from the part of your annual payment which falls within the upper limits. There is no deduction in the highest limit.*
| Limits based on annual membership fees received | Reserve fund (individual account) |
Operating fund | Liquidity fund |
|---|---|---|---|
| membership fee between HUF 0 – 10 000 |
90% | 9,9% | 0,1% |
| membership fee between HUF 10 001 – 120 000 |
94% | 6% | 0% |
| membership fee between HUF 120 001 – 240 000 |
95% | 5% | 0% |
| membership fee between HUF 240 001 – 500 000 |
97% | 3% | 0% |
| membership fee between HUF 500 001 – 1 000 000 |
98% | 2% | 0% |
| membership fee above HUF 1 000 000 |
100% | 0% | 0% |
Documents
Voluntary pension fund membership application
12 questions and answers about the tax refund on payments made in 2023
Change report form for fund members
Statement concerning E-post service
Identification form and statement on politically exposed person status for natural persons
Data protection information sheet of Alfa Voluntary Pension Fund
Data protection information sheet of Alfa VIG Pension Fund Management Company
F.A.Q
The state pension system is a so called „pay as you go” system, which means, that the contributions paid by the employees and employers are paid out to the pensioners immediately. Therefore no savings are created. The incoming revenues are transferred to the pensioners at once.
Our pension will depend on the current active employee/pensioner portion, and the state employment policy.
The society is aging, the population of pensioners is increasing, the number of active employees is decreasing.
The voluntary pension funds are independent of the state system. The contributions can be made both by the employers and employees. Own contributions qualify for tax allowances. The pension account can be inherited, it generates yields, its main purpose is to support pensioners although it is flexible and earlier payments are possible too.
The tax reimbursement is 20% of your payments (individual deposits, company donations and company contributions). The maximum of the allowance is HUF 150,000 per annum. It is paid by the Tax Authority to the pension account in the year following the tax year, i.e. in 2025 for the first time.
To reach the maximum tax allowance the individual payment is HUF 750,000.
In such cases you may either
- continue to contribute yourself, paying at least the minimum monthly fee which is currently HUF 9,000 or
- if no contributions arrive to the account your money is still invested, i.e. it can generate yields and our pension fund is entitled to deduct maximum HUF 4,000 per annum from the positive yields generated.
Foreign citizens may also benefit from these pension contributions, even if they move from country to country every three-four years. Savings account created in the different couneztries accumulate by the time they retire. The account left behind in Hungary does not create additional expenditures, but over years it generate yields and finally at retirement supplement the pension regardless in which country the individual retires.
Hungarian state pension (not the above discussed VPF pension) depends on many factors, e.g. nationality, number of years of service in certain countries, the country in which the person finally retires and the international agreements between Hungary and the retirement country.
The earlier you can start putting aside money due to the compound interest the more yields and savings are generated to supplement future pensions.
- Lump sum.
- Annuity for fixed number of years (can be inherited during the annuity payments)
- Combination of the services above.
The type of service must be decided at retirement.
As a main rule, the savings can be withdrawn free of personal income tax after reaching the retirement age, which is currently 65 years (with some special exceptions).
The savings can be withdrawn before the retirement age if at least 10 years had gone since the joining. In this case the yields are tax free, but the capital is taxable as the money is not used for pension purposes. Therefore the “ten-year rule” does not represent a termination date but it is rather an option.
Money is inherited by the heir-at-law or by the beneficiary. The name of the beneficiary can be modified in writing any time (free of charge).
Generally speaking the portfolio containing more shares will generate more yields on long term, but on short term yields may volatile a lot. Please check our brochure when choosing your portfolio.
Please send your membership certificate to HR or payroll in case your employer pays pension fund contribution.
