Delaying Retirement Can Substantially Boost Pension Benefits, Report Finds
A recent “Pension Report” analysis, delivered to the Prime MinisterS Office, examines the impact of the restored lower retirement age implemented during the previous government. The report highlights rising average pension amounts alongside a growing disparity in benefits received by men and women.
In December 2022, the average pension stood at PLN 2,927. Men received an average of PLN 3,628, while women averaged PLN 2,468 – a difference of approximately PLN 1,160. This gap widened to over PLN 1,300 a year later and is projected to approach PLN 1,500 by December 2024. At the end of last year, the average pension for men was PLN 4,818, compared to PLN 3,321 for women.
The Social Insurance institution (ZUS) is actively promoting strategies to maximize pension benefits, with a strong emphasis on incentives for continued employment. The report clearly demonstrates that each additional year worked after reaching retirement age translates to a higher contribution base and, consequently, a larger monthly pension payment. ZUS indicates that extending work life by five years beyond the minimum retirement age can perhaps increase benefits by as much as 50%.
The analysis reveals a ample benefit to delaying retirement even by a single year. ZUS calculations show that working just one year longer can increase pension benefits by approximately 8-9 percent. The “Pension Review” further clarifies that pension amounts are recalculated and adjusted upwards when a retiree continues to work and contribute to the social insurance system. Specifically, the report states that the pension amount is re-determined upon request, submitted after the end of the calendar year or upon cessation of retirement and disability insurance.
This data underscores the significant financial advantage of postponing retirement, offering a clear path to a more substantial pension income.
