Go East, German retiree: Pensioners find refuge in Hungary

At first glance, Marcali, a sleepy town in Hungary's Somogy county, offers little more than rolling hills and modest homes with tiled roofs. Yet to German pensioners seeking a new life abroad, it is something of a promised land. 

In Somogy, less than $52,000 can buy you a renovated 70-square-meter house on a sprawling 5,000-square-meter plot—a price that, as one local German realtor notes, "wouldn't even get you a garage in Germany."

Over the past decade, Hungary has quietly become a haven for German retirees disillusioned with the rising cost of living, political tensions, and social changes back home. In 2022, official statistics show, 22,100 Germans were living in Hungary. Nearly half were over 60. In 2021 alone, 4,036 Germans relocated, marking a sharp increase from previous years. 

Pension transfer data reveals a similar story. In 2018, 11,700 German pensioners received their payments in Hungary. By 2023, that number had grown to 14,700, a 25 percent rise in just five years.

The appeal is straightforward. With German pensions averaging $850 to $950 per month, retirees can barely scrape by in their homeland. Since 2021, housing prices in Germany have risen by nearly 30 percent, driven by a mix of soaring demand and limited supply. 

At the same time, energy costs surged by over 40 percent, exacerbated by the recent energy crisis, while food prices have spiked by 20-30 percent. These rising costs have hit Germany's elderly population hard, particularly those living on fixed incomes. 

A 2023 OECD report found that nearly 20 percent of German pensioners live below the poverty line, a figure that has steadily risen in recent years. Many retirees, particularly those from eastern Germany, are being priced out of their own country. Unable to afford rent in cities or the costs of homeownership, they are looking east.

Political movement

Yet affordability alone does not explain the migration. For many, the decision is also political. 

"With Merkel's 2015 refugee invasion, you could see the country changing year by year," says Andre Iwan, a retired construction worker now living near Lake Balaton. "We felt like second-class citizens. We work, we pay taxes, and we're ignored. Others come in, and it's as if it's their country now." 

Such sentiments, while controversial, resonate among a segment of German pensioners who feel increasingly alienated by their country's immigration policies and social tensions.

Hungary's right-wing government, led by Viktor Orbán, has capitalized on this discontent. Orbán often boasts of Hungary's appeal to Western pensioners as proof of his policies' success. 

However, this influx comes with its own challenges. In regions like Somogy and Zala counties, the demographic impact is stark. In Somogy county, 38 percent of residents are now over 60 – far exceeding the national average. 

A boost but also a drain

While the arrival of German pensioners has boosted local economies, it has also exacerbated Hungary's demographic crisis. Local officials worry about the strain on healthcare and social services as young Hungarians continue to leave for opportunities abroad.

"The aging population is becoming increasingly visible," notes Tibor Navracsics, Hungary's Minister for Regional Development. "The Balaton region faces a demographic crisis, with retirees arriving while young people move away." 

For smaller towns like Marcali, this means fewer workers, shrinking local schools, and an economy heavily reliant on older residents. 

Lake Balaton, Hungary's largest holiday destination, epitomizes this shift. Once a magnet for East German vacationers during the Cold War, the region now attracts retirees looking to relive a quieter past. 

"We're seeing three to six property viewings a day," says a local realtor, noting that Germans are the largest foreign buyers. The influx is boosting the local economy but worsening the demographic crisis. 

"This isn't new," explains Gábor Lombár, head of the Balaton Association. "For decades, retirees have moved here and left their homes to younger family members. What's changed is the scale."

For now, Hungary seems happy to welcome them. Its housing market, though rising, remains far cheaper than in Germany. And while concerns over Hungary's political direction persist among some Western observers, for German pensioners struggling at home, the promise of cheap housing, better weather, and a slower pace of life is hard to resist.