New Retirement Age 2023? The government is quick to put an end to the recent speculations that are part of the pre-election campaign. Most Poles claim that they will continue to work after reaching the retirement age, but it is still possible, not a necessity, to work in old age. The first information on the indexation of pensions in subsequent years has also appeared.
We already know how much the minimum pension will be in 2023, but also how the pensions of Poles have increased since March this year. In April, pensioners receive pensions along with the “thirteen”, so transfers are higher. In May, the vast majority of seniors will receive a basic benefit, which, however, has changed significantly since May last year. Detailed year-on-year calculations can be seen in the gallery below.
At a press conference family minister Marlena Maląg and president of the Social Insurance Institution prof. Gertrude Uścińska the question was asked when it would be necessary to raise the retirement age due to unfavorable demographic factors. The introduction of such a solution is recommended to Poland by e.g. Organization for Economic Co-operation and Development (OECD).
Family Minister Marlena Maląg, referring to this issue, said that Retirement at the appropriate age should be a choice, not a compulsionTherefore, the government has introduced many instruments encouraging people to stay longer in the labor market. As she pointed out, it is, for example, PIT 0 for seniors.
We did not restore the retirement age (60 years for women, 65 years for men) in order to work on extending it now – stated the head of the Ministry of Labor and Social Policy.
More and more Poles admit that they are unlikely to take advantage of it the lowered retirement age a few years ago and after reaching it will continue to work. 55 percent say so. respondents in the Polish Labor Market Barometer survey by Personnel Service. This percentage is increasing, a year ago such answers were 50 percent.
According to the “Barometer of the Polish Labor Market” Personnel Service, every second respondent declares that he will wait before retiring. It is also pleasing to the government, which is preparing additional benefits for working people, although they can already benefit from a pension. The greatest motivation to work longer for the majority of people interviewed in the surveys is the increase in the future pension for additional years of work.
In 2023, there was a record indexation of pensions. The Sejm adopted an amendment to the act on the indexation of pensions, which resulted in an increase in benefits for seniors by at least PLN 250 from March this year. The lowest pension increased to PLN 1,588.44, which means an increase of 13.8 percent.
Forecasts regarding the indexation of pensions for 2024 indicate that seniors can expect an increase in benefits by 10.19%. In the next year, i.e. in 2025, the indexation is to be lower and amount to 5.77%. The expected increases in the coming years are to be below 5%. Inflation is expected to fall.
We carried out calculations to see how the suggested indexation will affect pensioners’ payments, taking into account the coming year. The minimum pension, currently amounting to PLN 1,588.44 gross, could increase to PLN 1,750.30 gross from March 1, 2024. See the calculations in the gallery above.
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2023-05-13 23:16:14
#retirement #age #Poland #pension #indexation #forecasts #14.05.2023
