More and more Polish seniors make a amazing decision: they consciously quit collecting 13th and 14th pensions, i.e. additional PLN 2814 per year. Although it may seem irrational at first glance, there is simply a precise financial calculation behind this choice, which allows them to make much more – and it is completely legal. The latest ZUS data uncover that already 872,6 1000 pensioners In Poland, he continues to work after reaching retirement age, which is simply a evidence number. The key to this “emeritical revolution” is the PIT-0 relief for working seniors, introduced as part of the Polish Deal. Furthermore, Donald Tusk's government, in a uncommon gesture, officially praised this reform, confirming its affirmative impact on public finances and individual portfolios of Poles. This change in the financial strategy has immense consequences for anyone approaching retirement age.
A math that delights seniors. How does PIT-0 work?
The secret to the increasing number of active seniors lies in the mechanics PIT-0 relief. As the Ministry of Finance states, people of retirement age who choose to temporarily opt out of the benefit and stay active can benefit from income taxation exemption up to the amount PLN 85 528 per year. To this sum, their earnings are completely free of PIT. By comparison, the full amount of 13th and 14th pensions in 2024 amounted to PLN 2814. The strength of PIT-0 relief lies in its continuity.
For example, elder earner PLN 4300 gross per monthThanks to PIT-0 it saves about PLN 1380 per year. Relief works throughout the year, expanding the real amount in the account, as opposed to disposable allowances. Moreover, if a elder is accounted for on a taxation scale, he can besides benefit from tax-free amount of PLN 30 000. In practice, this means that a working pensioner will start paying taxation only after exceeding full earnings 115 528 PLN per year. This makes one-off additives highly profitable in the long term.
Women leaders of revolution and government approval
ZUS statistic indicate women's dominance: among 872.6 1000 extraordinary pensioners, up to 58.1 percent are women. They are the ones who most frequently decide to proceed working before men. The average age of pensioners returning to work is 66.3 yearsand men – 69.2 years. The highest percent of active seniors is observed in regions with the most developed labour market, specified as Mazowieckie and Śląskie voivodships.
Krystyna from Warsaw, a 63-year-old bookkeeper, explains: “With PIT-0, I will save over PLN 4,000 a year. In addition, I will increase my pension capital. This simply pays more than these disposable additives.” The effectiveness of the solution was confirmed by the current government. In the paper "Medium-term budgetary and structural plan for the years 2025-2028", Donald Tusk's government officially acknowledged that the PIT-0 relief for seniors "has a affirmative effect on public finances, pension systems and sex equality". According to the Ministry of Finance, working seniors saved thanks to PIT-0 at least PLN 800 million.
What does that mean for your retirement? applicable Advice
If you are approaching retirement age, it is worth rethinking your strategy. conventional retirement on the date of entitlement may not be an optimal financial solution. Experts estimation that one year's deferral of pension can increase the future experience by up to 21.5 percent. It's a 3 percent increase in the pension. utilizing PIT-0, combined with the postponement of the benefit, saves thousands of PLN on taxes while building a higher future pension.
The key is knowing the terms: to benefit from PIT-0, you must temporary retirement. You cannot receive and benefit from benefits at the same time. To benefit formally from the relief, make an appropriate message to your employer (model available on the Ministry of Finance website). Remember the income limit of PLN 85 528 a year – above this amount you will pay tax. Monthly earnings should not exceed about PLN 7120 gross to make full usage of the relief. Including the tax-free amount, the real income threshold is PLN 115 528 per year.
The future of the system: fresh incentives and possible traps
The pension strategy in Poland is evolving and ZUS is working on further solutions to encourage longer professional activity. 1 of the proposals is bonus of PLN 20 1000 for each year of deferred pensionAs reported by Superbiz.se.pl. A improvement of the 13th and 14th pensions is besides planned to guarantee that those who postpone the transition to benefits receive a cumulative amount of allowances. Łukasz Kozłowski, FPP economist and associate of the Supervisory Board of ZUS, explains: “We are affected by the magic of large amounts that we can get once, not payments spread over 20-25 years of retirement.” The first ZUS recommendations are to be ready in fourth 4th of 2025.
Despite these incentives, experts warn: people utilizing PIT-0 "freeze the level of retirement". This may consequence in lower future benefits compared to those who have chosen to postpone unemployment. On the another hand, not all elder can quit the benefit completely. For many, combination of pensions and work is the only way to a decent life, especially erstwhile the average pension is only PLN 3735.34 gross. Therefore, each decision needs individual analysis. Take advantage of the free consultation with the Social Insurance Institution to choose the best strategy – decisions made present will affect your finances for decades.
SEO tags: pension, PIT-0, seniors, ZUS, 13th pension, 14th pension, post-retirement work, taxation relief, elder finance
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Pensioners resign from 13th and 14th retirements. Government admits: they gain more thanks to PIT-0
