The amount of pension in Poland is inactive 1 of the most burning topics among the active. Gross amount of PLN 7000 as monthly pension benefit To many sounds like an unsurpassed target. However, to get it, it is not only adequate to pay contributions systematically – much higher earnings than average and long working hours.
How does ZUS calculate retirement?
The Social Insurance Institution takes into account respective factors that consist of the final amount of the pension:
Valorised first capital, the sum of contributions collected on sub-accounts and life expectancy during the period of the benefit. The second is calculated on the basis of statistical tables of the Central Statistical Office and takes into account differences between the sexes.
The pension strategy rewards higher earnings as they make higher contributions. However, current demographic and economical conditions make ZUS itself increasingly insufficient to guarantee a comfortable retirement.
How much does a man gotta gain today?
According to calculations by Piotr Yusczak, taxation advisor, a man born in 1985 who will work until retirement age, should now gain money approximately PLN 14 500 gross per monthto have a pension warrant in the vicinity 7000 PLN. This amount is about 165% of average wage in Poland.
With specified remuneration, the projected pension will be precisely PLN 6980which is akin to the dream amount of many working Poles.
Women request to gain much more
For women, the situation is more demanding. due to the lower retirement age and the longer expected retirement life, they must collect more contributions to get a akin benefit.
According to experts, a female must gain money. approximately PLN 22 000 gross per monthto receive a pension of around PLN 6520. This means that despite higher earnings than a man, her witnessing will be about 460 PLN lower.
Barriers and challenges of the pension system
This difference is mainly due to the fact that women finish work on average 5 years earlier, which reduces their contribution period. In turn, a longer life expectancy means that the funds collected must be distributed over more months of pay.
These statistic show that the current pension strategy is gender inequality and additional saving, e.g. in IKE, IKZE or PKP, to guarantee a fair service after the end of the work.
What about the pension of PLN 6000?
For the little demanding, those dreaming of a pension of about PLN 6000 It's not easy either. A man would gotta gain about PLN 12,000 grossAnd a female above PLN 20,000 grossto scope about PLN 5920 and PLN 5800 respectively.
This shows how much demands the current strategy imposes on the earnings of young people who are planning their retirement future today.
The calculations clearly show that to receive a pension of around 7000 PLN per month, you request much higher earnings than average. Women in peculiar face a greater challenge, which requires informed financial planning and the usage of additional forms of savings.
Retirement at this level is so not an "easy" goal and requires a long-term strategy for income and investment if we want to enjoy financial comfort after the end of a career.
Continued here:
How much does it take to get a 7,000-dollar pension today? The calculations leave no illusions
