The assumption is simple: you have worked 35 years, you have worked 40 years – you retire whenever you want, regardless of age. It is important that for so many years you have been compulsorily – or have voluntarily paid your pension contribution to ZUS. The last contribution has been received, you have reached 35 or 40 years of service, you can apply for a pension. If this regulation came into force before March 1, 2021, the lowest retirement pension would most probably amount to PLN 1,560. The fact that there is great interest in the project shows that there are really many people who start working in Poland at an early age!
This solution is currently being considered as a complement to the current pension system. Currently, as we know, to retire – apart from, for example, uniformed services – you must be at least 60 years old for a woman, 65 for a man.
Currently, in the case of early-stage workers, the length of service is closer to fifty years than it is only forty years.
The originator is President Andrzej Duda, who is supported by the trade union “Solidarity”, but adding his own condition – the capital accumulated on the retirement pensioner’s account must allow for the payment of the pension in the amount of at least 120 percent. the lowest pension currently in force.
Minimum seniority pension: 120 percent of the lowest retirement pension
This is due to the fear that the money collected from the pension contributions of people retiring before the age of 60 will be small and, consequently, the pension will be a penny.
Low pensions from ZUS are the main reason why solutions are still being sought that would constitute a new pension law and improve the financial situation, especially of people receiving the lowest pensions. Meanwhile, the condition of public finances does not allow for an increase in subsidies to pensions from the state budget. COVID calls into question the payment of the already promised and enrolled in almost thirteenth pensions and fourteenth pensions – the law, but it is not known whether there will be enough money in the budget next year to finance such social programs and their suspension is increasingly being considered.
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Pensions in 2021: a lot of unknowns
Besides, not the only unknown – the work on the liquidation of OFE has not been completed yet, the money from which, according to the law originally adopted by the Sejm, was to be transferred to private individual pension accounts already in June this year.
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It is known how much the indexation of pensions will be from March 2021 – the rate of 3.84 percent. it is included in the draft budget act presented by the government. Were it not for inflation at the level of 3-4 percent. it would look good, but in practice many key prices in the pensioner’s portfolio, e.g. energy, garbage collection and other housing-related fees, not to mention drugs – they rise much higher than the inflation and planned indexation rates.
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It is also not known whether it will be possible to find money to increase the minimum pensions above the indexation index, as was the case in recent years. Currently, the lowest pension is PLN 1,200. G.If, as promised, it was possible to raise it by another PLN 100 from March 1, it would be PLN 1,300.
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