Good old Europe is indeed aging inexorably, and today this observation is true both for the states of the western part of the continent and for the eastern. The rising average age of the population is bringing the issue of social security for the elderly to the forefront in many countries. A universal solution is considered to be raising the age limit for retirement. Polish legislators have tried to move away from this practice, and in 2020, pensions in Poland will be available from age 60 for women and from age 65 for men.
Polish pension system
The basic principle of the Polish pension system is that the heavy burden of state social security should be redistributed between the budget and private pension funds.
This led to the fact that contributions for future pensioners began to be transferred in two directions:
- distribution part - 12.22% of salary - insurance payments to the State Social Insurance Fund (Zakład Ubezpieczeń Społecznych);
- the funded part – 7.3% of monthly earnings – funds transferred to open pension funds.
Not all Poles have the right to a funded pension. For this purpose, an age gradation of future pensioners has been introduced, according to which:
- those born before January 1, 1949 will receive a pension accrued in accordance with the joint insurance system that existed before the 1999-2000 reform;
- those born from January 1, 1949 to December 31, 1968 can choose the method preferred for each individual pensioner;
- those born after January 1, 1969 will already receive the pension that the new pension system guaranteed them.
The essence of the 1999 reform is to reorganize the social insurance institution and force citizens to invest part of their funds in open pension funds, thus forming the funded part of their future pension.
At the same time, it was planned that private insurance funds would invest the contributions received in domestic assets or securities, activating the Polish economy.
Everything about the system of taxation and social contributions in Poland is in the article “Taxation of personal income in Poland.”
Retirement age and length of service
The previous Polish government, following pan-European trends, agreed with the need to increase the retirement age to 67 years. It was planned to reach this level for women and men by 2040.
But with the advent of the new coalition, the approach to the issue has changed.
The election promises of the new Polish leaders were embodied in a law in which the retirement age in Poland for women and men was reduced by almost 7 years: to 60 years for women and to 65 years for representatives of the stronger half of humanity.
Having lowered the age for retirement in old age, the minimum length of service required to receive an insurance pension was left at the same level. To do this, a man needs to work for 25 years, and a woman for 20 years, and must pay contributions.
Amounts of insurance pensions in Poland
The minimum insurance pension in Poland is 853 zlotys (equivalent to just over 200 euros) per month (net), but in practice such a low level of pension benefit is established for only 4-5% of elderly Poles, as well as for foreigners who were able to confirm their insurance length of service sufficient to calculate a pension in Poland.
Other citizens receive a little more: the average payment per month ranges from 1500-2000 zlotys.
Payments to disabled people and military personnel
The amount of disability payments depends on the nature of the health damage. Those who have partially lost their ability to work are given a very small benefit - 750 zlotys per month, and for completely disabled citizens (including those from birth) the pension annuity is slightly higher - 900 zlotys.
The amount of payments is below the average for the economy, but the state is trying to socialize people with disabilities, stimulating the creation of jobs for specialists with special needs.
Against the general background, a military pension looks attractive:
- with regard to the age of retirement - the right to receive social benefits appears for men at 55 years old, and for women at 50 years old (subject to service for 15 years or more);
- in relation to the amount of rent - 75% of the military’s earnings;
- Regarding the assignment of a pension, both officers and privates can receive a military pension annuity.
Pension calculation rules
The formula on the basis of which pension annuity is assigned depends on several indicators:
Pension amount = Amount of paid insurance contributions (indexed to the date of payment) / Number of months of survival in retirement.
The necessary indices and demographic indicators are regularly provided by the Polish Statistical Service (GUS). They are calculated based on analysis of data for the previous 10 years.
It is interesting that in the event of the imminent death of a pensioner (within three years from the date of assignment of the pension), the right to receive part of the accumulated pension contributions passes to his heirs or dependents.
How are pension savings structured?
As mentioned above, every working Pole has the opportunity to take care of his pension in the future; to do this, he only needs to make 20% contributions to the fund from his salary every month. All this money can be distributed in this way:
- about 12% goes to insurance;
- the remaining 8% goes to an account in the pension fund.
Additionally, citizens have the opportunity to open their own account, which can ensure a normal old age. About 85% of the total population of the state participate in the individual pension system.
Quality of life of pensioners in Poland
Despite the relatively small pension benefits, most Polish pensioners do not live on the brink of poverty. The average pension is enough to eat well and pay for housing.
In addition, retirees who wish to continue working can find full-time or part-time employment.
Today, all restrictions in this regard have been lifted, and part-time work will not deprive a person of the right to receive a pension.
For a Pole who has reached retirement age, only positions with harmful or dangerous working conditions are unavailable; all other areas are quite suitable. For those who need additional funds, but cannot earn them on their own, the state will come to the rescue.
What is a pensioner card?
Citizens living in Poland can easily receive their pension and additionally work at an enterprise or any other organization. As a rule, they are trying to get a relatively easy job.
Having a Pole card is also important for a Polish pensioner. It is issued by certain departments, and for this the citizen must live in the country for about 1 year. Despite the retirement age in Poland, with this card its owner can receive a monthly benefit from the state, which amounts to $140. Women who have twenty years of experience and men over 65 with 25 years of experience can apply to the department for it.
State support for Polish pensioners
European capitalism is structured in such a way that the weakly protected part of the population of many countries can always count on additional benefits from the state. Poland in this sense was no exception.
For pensioners and people who have lost their ability to work, a whole list of support measures is provided:
- assistance in paying utility bills and housing costs - from 50 to 100%;
- preferential rates for travel (within the country and within the EU);
- payment for retraining for disabled people who intend to change their field of employment;
- everyone who receives a pension benefit below the average level can purchase medicines at reduced prices (and pensioners over 75 years of age can receive medicines for free), enjoy free travel on public transport and can visit private clinics at reduced prices.
What is the size of the pension and retirement age for teachers and military personnel?
Teachers in this country can count on a fairly large pension, because it is half of their salary. On average, a teacher earns 800 euros, and if you divide this amount in half, then upon retirement, a person will be able to receive 400 euros monthly.
Unlike other countries, a Pole is unlikely to be able to retire early, since the main condition for accruing it is having 30 years of experience. In general, the retirement age in Poland for female teachers is 60 years, and for men - 65.
By the way, military personnel receive the largest pensions here, and the conditions for this are a little simpler than for teachers. Even a simple soldier can retire if he has at least 15 years of work experience. In Poland, the retirement age for women involved in the military profession reaches 50 years, for men – 55.
The right to receive a pension in Poland for citizens of CIS countries
The opportunity to receive a pension in Poland is provided not only for citizens of this country, but also for residents of the EU and several countries outside it, for example, for Ukrainians.
If foreigners want to claim insurance benefits from ZUS, they must:
- countries have concluded an intergovernmental agreement on social security;
- the pensioner legally lived and worked in Poland;
- the person has deregistered from the Pension Fund of his state (to avoid double payments);
- a citizen of another country could confirm his experience (in Poland, at home, or both).
Considering the large flow of labor migrants from the territory of the former USSR, interest in the issue of pensions among CIS citizens is quite high.
However, if the Ukrainian government managed in 2014 to agree on the recognition of work experience for its citizens, then a pension in Poland for Belarusians and Russians remains out of reach.
About who can qualify for pension payments and what is necessary for this when moving from the Russian Federation, see our article “Pensions for Russians living abroad: what you should know in 2019.”
Registration of a Polish pension for migrants from Ukraine
The social security agreement signed between Ukraine and Poland makes it possible for a pensioner to sum up the length of service earned over his entire working life.
Thus, a Ukrainian who has worked in his homeland for 15 years will have to earn only 10 years of experience in Poland in order for this to be enough for a retirement pension.
The Social Insurance Fund (ZUS) is tasked with administering payments when the time comes.
To confirm his right, a Ukrainian only needs to present to the local branch of the organization:
- application to ZUS;
- a foreign passport or other document that can confirm the identity and its right to stay in the country;
- certificate of deregistration with the Pension Fund of Ukraine;
- a note on cancellation of registration in Ukraine;
- documents on the amount of insurance experience, translated into Polish.
During the registration process, individual nuances may arise, which will require the provision of more specific papers.
The final list can only be obtained from a ZUS inspector. By the way, the decision to grant a foreigner a pension greater than the minimum also depends on the voivodeship in which the documents are submitted.
Pension for repatriates and those with a Pole Card
Poland has long approved programs under which it actively invites everyone who has Polish roots to return to the country for permanent residence or receive a Pole Card. In both cases, the holder of this status can count on unhindered entry into Poland, equal rights in doing business and financial support from the state: 900 zlotys for each family member for the first 9 months.
According to the law on repatriates, the experience earned in another country will be added to that accumulated in Poland.
Another thing is that even if a person has worked 25 or more years in his entire life, in Poland he will still be assigned a minimum pension of 1000 zlotys (gross).
Peculiarities
Now let's talk about calculating old-age benefits:
For Pole Card holders and repatriates
Even in the absence of interstate agreements, persons who have received repatriate status have the right to sum up the length of service obtained both in Poland and in the previous country of residence. There was an unequivocal decision on this matter by the Constitutional Court of the Republic of Poland.
The situation is similar with holders of a Pole card who moved to Poland for permanent residence. However, there is no precise definition on this issue, and occasionally problems have arisen with the summation of length of service in individual Voivodeships. In most cases there were no such problems.
Do not forget that cardholders can count on another financial benefit. help from the state.
By disability
Social benefits and allowances are also established for persons who have lost their ability to work (deprived of it from birth). There is a distinction between complete and partial disability . In the first case, the rent is about 900 zlotys, in the second – 750.
There are also a number of intangible benefits expressed in partial compensation:
- travel tickets;
- medicines;
- housing payments;
- medical care;
- technical means of rehabilitation.
The state is also involved in the employment of these persons. For this purpose, special national and local programs are in place, affordable production is being created, and private enterprises are being stimulated.
The procedure for obtaining disability
Foreigners can obtain a disability (or confirm one acquired in another country) with a PESEL and permanent registration. However, in the absence of proper work experience in Poland, they cannot count on rent (or its payment in full).
Why confirm the group for the disabled? Firstly, in each individual case certain benefits and payments may be assigned, although not in full. Secondly, such a foreigner has the right to count on participation in the employment program, which is much more convenient than looking for work on his own.
To obtain (confirm) loss of ability to work, contact Miejski Ośrodek Pomocy Społecznej (the abbreviation MOPS is more often used). To visit the institution’s commission, the following documents are collected:
- Referral from a local doctor - you will have to visit the clinic and, after explaining the situation and undergoing an examination, receive Zaświadczenie o stanie zdrowia.
- Notarized translation of a disability certificate issued in another country (if available).
- PESEL.
- Confirmation of legal stay (residence card, visa).
- Identification.
- Completed Wniosek o wydanie legitymacji osoby niepełnosprawnej (issued directly to MOPS).
Documents are reviewed for up to 2 months , after which the applicant is called to the commission. After receiving a positive decision and establishing the degree of disability (orzeczenie o niepełnosprawności), you can immediately contact Urząd Pracy in the specialized department of the Rejestracja dla osób niepełnosprawności to try to find a job.
For the military in the Republic of Poland
Statistically, this is one of the highest types of pension annuity. The largest payments go to former military prosecutors and soldiers who fought in foreign units. The smallest are the military ones during the existence of the Warsaw Pact.
Not only officers, but also privates can count on a “military” pension if the total time of service is equal to or exceeds 15 years. Women who have reached the age of 50 and men after 55 years can apply for a pension.
The pension amount is 75% of the serviceman’s earnings.
Summarizing
The Polish pension system is recognized as one of the most effective in Europe. The indisputable achievement of the State Social Insurance Fund is that there is no shortage of funds to pay pensions in the country. This was made possible due to satisfactory economic trends and the activity of open pension funds in Poland.
However, the relaxations regarding the retirement age adopted from 2020 will sharply increase the number of people wishing to retire – up to 330 thousand people per year. According to the new government, there are enough funds in the budget and they are ready for a one-time jump in spending.
