Inflation is racing, prices are rising, and the pandemic reality means that many Poles have nothing to save for their own retirement. However, it is worth recalling that in 30 years, seniors will have to live on 1/3 of their current income – the replacement rate in 2050 will be at the level of 29.5%, and cash benefits from the state fund will not be sufficient for basic needs. Saving for the fall of life is no longer a whim of the wealthy, but a first-necessity decision.
It is better not to postpone this problem – there will always be more urgent things, because it is related to the present day, but this is the key one. We will retire for a dozen, if not several dozen years. Our income will shrink during this time and our needs (health) will increase.
We will have as many pensions as will be calculated on the day of transition to it – indexations almost never compensate for the price increase. The closer we get to retirement age, the greater will be the need to put aside more money – and this is never easy. Meanwhile, if it starts early, even PLN 100 a month will build huge capital for the autumn of life.
Inflation is racing, prices are rising, and the pandemic reality means that many Poles have nothing to save for their own retirement. However, it is worth recalling that in 30 years, seniors will have to live on 1/3 of their current income – the replacement rate in 2050 will be at the level of 29.5%, and cash benefits from the state fund will not be sufficient for basic needs.
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After retirement, it will be a good solution to look for additional sources of income in retirement (such as a reverse mortgage, as long as we “save” now by paying off capital installments of the mortgage) or use the money that we have previously set aside – and so now – e.g. in IKE or IKZE. The problem is that the number of “puters” is still residual and awareness is low.
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