The retirement age increased to 70 years?! First reports of planned changes

dailyblitz.de 2 weeks ago

Unofficial information about the possible increase of retirement age in Poland to 70 years caused a wave of social discontent and speculation. Although the government did not confirm any circumstantial decisions, the subject returned to the public debate due to reports from circles akin to the state administration. What is truly known and the consequences?

Unconfirmed reports, real emotions

According to the first, unofficial informationwhich went to the media, The government may consider different options for pension reformOne of them is to be extension of the retirement age to 70 years. This information is to come from analyses carried out within the departments liable for social policy and state finances. However, sources do not indicate that any decisions have already been taken – at this phase are just working concepts.

The informality of this information did not prevent them from triggering an immediate and emotional reaction from the public. On social networks and in comments under articles in the media appeared many Voices of outrage, especially from people aged 50+ and those who are approaching retirement age in fresh years.

Demographic and financial context

The thought of extending the retirement age arises in the context of a deteriorating demographic situation and the financial challenges faced by the Polish pension system. Data of the Central Statistical Office (GUS) and forecasts of the Social safety Office indicate increasing deficit of the Social Insurance Fundwhich in the coming years can deepen.

Poland is ageing rapidly – according to GUS forecasts until 2050 until 40% of the population may be a group of people over the age of 60. At the same time, the number of active people is decreasing, which means fewer and less contributors per pensioner.

From the point of view of the state budget and the stableness of the pension system, extension of working life could bring immediate financial benefits. Extended retirement age means little benefits paid and more contributions to ZUS.

Political cost of raising the retirement age

It is worth reminding that the subject of retirement age is highly crucial in Poland Politically Irritable. In 2012, Donald Tusk's government introduced a improvement raising retirement age to 67 years – this change was later revoked by the Government of Law and Justice in 2017, restoring earlier thresholds, 60 years for women and 65 years for men.

Any discussion on the emergence of the retirement age is so linked to a large political risk. No government would take specified a step without appropriate social and protective compensation mechanisms. Meanwhile, present even lacks authoritative communication, which increases An atmosphere of anxiety.

Social reactions and expectations

The first social reactions to media reports show that Most Poles are opposed to extending retirement age. For many people 70 years of age is simply a time erstwhile they are no longer able to do professional work, especially physical work. There are besides concerns about job availability for seniors, and the deficiency of appropriate programmes to re-qualify or employment people over the age of 60.

Anxiety besides awakens health inequalities – life expectancy in wellness in Poland is approx. 59 years for women and 54 years for men (Eurostat data). This means that many citizens could not live to their retirement age or benefit from a very short pension.

Possible scenarios and improvement paths

Although raising the retirement age to 70 years seems improbable in the short term, this is the subject of pension improvement with certainty will return in public debate. Experts shall indicate another possible directions of change:

  • Incentives to a voluntary longer stay on the labour marketfor example in the form of higher benefits.
  • Reform of the strategy of contributions and taxation incentives for those working after reaching retirement age.
  • Strengthening capital pillars, specified as worker Capital Plans (PPK).
  • Extending professional activity through investment in wellness and prevention of people 50+.

In each of these options, behaviour will be crucial balance between the financial stableness of the strategy and social justice.

No authoritative decisions, but the subject will come back

Right now. No government typical has confirmed work on extending retirement age. Only reports of "concepts" and "working analyses" appeared in the media, which is not equivalent to the draft law or implementation plan. However, the fact that specified information reaches the public suggests that there is simply a serious discussion in the administration about the future of the pension system.

Come on. information on raising the retirement age to 70 years is not official, their very presence in public space shows that The subject of pension improvement is not closed. Poland is ageing faster than most EU countries and the pension strategy requires long-term solutions. Social Response Unconfirmed reports show at the same time how hard and delicate this is. In the coming months, it is surely to be expected return to political and expert debate.

Read more:
The retirement age increased to 70 years?! First reports of planned changes

Read Entire Article