The government is preparing a fresh proposal for elder citizens, which can bring crucial financial benefits to those who decide in the long word after reaching retirement age. The Pension Plus program assumes changes in the pension calculation algorithm, which is expected to consequence in up to PLN 30 1000 additional profit. The Minister of Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz, presented details of the plan, which could shortly enter into force.
Longer work, greater benefits
Minister Pełczyńska-Nałęcz, in an interview with “Fakt”, emphasizes that the aim of the program is to motivate seniors to stay on the labour marketplace after reaching retirement age while securing their benefits. Those who choose to work in the long word will not only not lose their thirteenth pension but will receive it in deferred form. Moreover, additional pension contributions, which are besides paid present by working elder citizens, will be transferred to the pension account, which will affect future benefits.
What changes do the Pension Plus foresee?
The strategy is to change the way the pension is calculated, which means that any elder who will proceed to work after reaching retirement age will be able to number on a higher benefit than the minimum pension, which presently amounts to PLN 1780.96 gross.
Minister Pełczyńska-Nałęcz explains: “If individual decides to work longer, not only will they receive late thirteens, but they will besides benefit from pension contributions that will be transferred to the pension account. In this way, elder citizens will be able to gain more than a minimum benefit, regardless of their contributions to date."
Deferred thirteenths and pension contributions
In the fresh program, deferred thirteens will be paid at the end of work. A individual who decides to work 5 years longer after reaching retirement age will receive 5 outstanding thirteens. This will make the additional financial gain even more felt.
"For example, a individual earning a minimum national (PLN 4,300 gross) working a year longer can number on an additional profit in the form of thirteen and pension contributions of about PLN 6000. The longer the elder works, the greater the profit.” – informs “Fact”.
How much can you gain from the fresh program?
The calculations presented by the diary show that people working longer can anticipate considerable additional financial benefits. The individual who earns PLN 7000 gross, choosing to extend his career by 5 years, will benefit from outstanding thirteen (8.9 1000 PLN) and additional pension contributions (PLN 28.9 thousand), which gives a full profit of PLN 37,8 thousand.
Programme beneficial to the budget and seniors
The Pension Plus programme is simply a solution to benefit both seniors and the state budget. Extending the working life of older people reduces the burden of the pension strategy while providing higher pension benefits for those who choose to work longer.
The rulers hope that the programme will encourage seniors to stay on the labour market, which will have a affirmative impact on the economy. The changes are expected to enter into force in the coming years and detailed rules will inactive be discussed in the legislative process.
The pension plus strategy aims to motivate seniors to proceed working after reaching retirement age, which will bring financial benefits in the form of deferred thirteens and additional pension contributions. The amendment to the pension calculation algorithm is intended to guarantee that any individual working longer than the required retirement age receives more than a minimum benefit. For those who decide to proceed working for respective years, the profit may amount to as much as PLN 30 thousand.
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Pension Plus: fresh government program with a profit of up to PLN 30 1000 for seniors
