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Pensions in Poland and the IMF. Without reforms, the amount of benefits will fall

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Pensions down: Economists from the International Monetary Fund believe that if by 2050 there will be no reforms in the public pension system in Polandthe average pension benefit ratio will decrease in Poland. And quite significantly.

From 49 percent up to 29 percent: “In the long term, population aging will undermine adequacy Polish public pension system, especially for poorer retirees, women and non-standard workers. Without any reforms until 2050, average the benefit rate will drop from 45 to 29 percent“- write, among others, experts from the IMF in the report.

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Minimum pension: The IMF adds that countering the effects of society aging in Poland is costs fiscal in our country at the level of 6 points. GDP by 2050. According to experts, dismal demographics may ultimately mean that the average pension would be equal to the minimum pension.

The number of the poorest seniors is growing: “The number of retirees receiving sub-minimum pensions increased tenfold in 2012-22, from approximately 36,000 to 365,000 people,” IMF experts calculate, adding that this number “is driven by the increase in part-time employment, which increased from 4 .4 percent to 9.6 percent.

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Equalize the retirement age? Experts indicate that one of the solutions may be equalizing the statutory retirement age for women and men and its gradual increase “as life expectancy increases.” Additionally, seniors should be encouraged to “extending working life” According to the IMF, such actions would contribute to “reducing the hidden fiscal costs of pension obligations in the long term.”

See also: What about indexation? Read more about this in the text entitled: “The second indexation of pensions. The government promised to unfreeze the project when it happens [WYLICZENIA]”.

Sources: IMF, tvn24.pl



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