The subject of expanding the retirement age again appears on the issue of public discussions in Poland. In the context of an expanding number of seniors and an expanding average of life, economist Dr. Tomasz Kopysciński emphasizes that the change is inevitable. What are the arguments for and against this decision, and what are the consequences for citizens? Let us take a closer look at this issue.
Demography and the Pension System
Data from the Central Statistical Office show that at the end of 2022 the number of Polish population was 37.8 million. Of this, nearly 9.8 million people were people aged 60 and over, representing 25.9% of the population. Compared to 2021, the number of seniors increased by 66.6 1000 people. Forecasts indicate that by 2060 Poland's population will decrease to 30.9 million and the demographic ageing rate will increase to 32.6%.
Changes to the Pension Scheme
In 2012, the PO-PSL government decided to rise the retirement age to 67. In 2017, the United Right revoked this decision, restoring earlier limits: 60 years for women and 65 years for men. The current demographic situation and changing economical and social conditions prompt experts to reconsider this issue.
Arguments for the Increase of the Pension Age
Dr. Tomasz Kopysciński, economist at the University of WSB Merito, points out that "uplifting the retirement age under our conditions is inevitable". In the face of an expanding average of life and an ageing population, it is essential to adapt the pension strategy to fresh realities. Without this adjustment, it will be more hard to supply decent pensions.
Retirement strategy Performance
Increasing the retirement age can aid to stabilise the financial pension system. Currently, the number of pension recipients has increased to around 8 million while the number of active contributors remains stable. The increase in the number of pensioners compared to those working could lead to further financial burdens on the system.
Opinion of the president of ZUS
President of ZUS, Zbigniew Derdziuk, in an interview with the diary of Gazeta Prawna stated that "there is no area for raising the retirement age today". He stressed that the number of contributors increased, but besides importantly increased the number of recipients of benefits. He besides noted that more and more foreigners work in Poland and pay contributions, which affects the financial situation of the pension system.
Social aspects
Increasing retirement age can be controversial from a social point of view. For many people, especially in jobs requiring quite a few physical effort, extending working time can be a major challenge. In addition, these changes may affect career planning and expectations of remainder after a long period of work.
What Will the Future Bring?
Possible Screenplays
Given the expanding number of seniors and changing demographic conditions, the decision to rise the retirement age may become a necessity. The government and experts will gotta consider different scenarios and strategies to guarantee the financial stableness of the pension strategy while taking into account citizens' needs.
Recommendations for Poles
Poles should follow changes in the pension strategy and be aware of possible future reforms. It is besides worth considering additional forms of financial safety for old age, specified as individual pension savings or investment.
The subject of raising the retirement age returns to the public agenda and the arguments for and against this decision are broad and varied. In the face of an expanding number of seniors and financial challenges for the pension system, a change in retirement age can be 1 solution. Monitoring the situation and preparing for possible changes are crucial to ensuring financial stableness in the future.
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