Issues related to pensions, their amounts, changes in the pension system and the institution responsible for, among others, paying them off – ZUS – these are topics that arouse great interest (online media see this very well) and emotions. Several myths have become established around this topic, including the two loudest: that ZUS is a financial pyramid and that the Social Insurance Institution will collapse financially and go bankrupt. We asked an expert about it.
Can ZUS go bankrupt?
– Sometimes we come across the statement “because ZUS will go bankrupt”. ZUS is only a helper of the state. You mean when I won't get my pension? If my country didn't exist. Although we have already experienced such a situation in history, when there was no state, I am talking about the period of occupation, and pensions were paid. Even in time there was no war Polish state, pensions were paid – notes Dr. Tomasz Lasocki, a social security specialist from the Warsaw University of Technology.
– Exactly 90 years ago ZUS was established. Interestingly, even then, and even before ZUS was established, it was predicted that this social insurance would not be accepted, that it would collapse, that it was almost a financial pyramid, although this term was not used yet – he recalled. He emphasized that ZUS will last “as long as it is needed.”
A few days ago, the president of ZUS, Zbigniew Derdziuk, also emphasized that the situation of the Social Insurance Fund is stable. 85 percent expenditure is covered by incoming contributions, which means a slight improvement compared to recent years. He also encouraged people to calculate the amount of their future pension using the tool on the e-zus website.
Is ZUS a financial pyramid?
Another frequently repeated myth is the “financial pyramid” mentioned above. – Nothing could be further from the truth – emphasizes Dr. Tomasz Lasocki. – This is called a society, not a pyramid scheme. We studied in schools that someone built, and in turn our children depend on what we provide for them. On the other hand, the inactive generation is always dependent on the active one. The social security system is, I would even say, an anti-pyramid scheme. Because, completely unlike in a financial pyramid, the way I live does not depend on whether someone else will join this scheme – he explained.
Will our pensions be very low?
What about our pensions? For the current generation of 30- and 40-year-olds, i.e. those who entered the labor market after the 1999 pension reform, the average replacement rate will be very low – it may be as little as a quarter of the last salary. According to forecasts, this may happen in two decades. This rate decreased in 2014-2020 from 52.5%. up to 42.5 percent (these are estimates from the Pension Institute).
– It will decrease. We have known this since 1999, although we pushed it aside for 25 years – says Dr. Tomasz Lasocki. So what can and should be done to make pensions higher? More about this in the conversation, which you can listen to, among others: under the YouTube link below or with the video posted in this article.