What Does The Lower Retirement Age Mean? Credit Loan
From September 2017, Poles may earlier retire due to the entry into force of provisions regarding the reduced retirement age. Women can be retired at the age of 60, men in turn at the age of 65. What exactly does the lower retirement age mean for future retirees?
In modern countries where systems assume the existence of a retirement, an important factor in obtaining it is reaching the appropriate retirement age. The important issue, however, is that people who reach this age are not infirm, but often the opposite – they still function normally.
Currently, in most European countries, the retirement age for both women and men is 65, 66 or 67 years. This age is higher than in the previous years, which is mainly due to the fact that we live longer as a society. In Poland, however, the government decided to go the other way round, that is to lower the retirement age or to bring it back to its pre-reform state.
60 for women and 65 for men
The act assumes that, after changes, the retirement age for women will be 60 years, while for men it will be 5 years longer, ie it will be 65 years. The previous retirement age for both women and men was 67 years and was gradually raised.
Therefore, women will be able to retire up to 7 years earlier than expected, while for men this age will be reduced by only 2 years. Of course, some professions may also be retired earlier.
Advantages and disadvantages of a lower retirement age
The lower retirement age has both specific advantages and disadvantages. It is worth noting that the lower retirement age does not automatically mean that we must use it. You can also work after it has been achieved, however, experts estimate that due to changes many people will decide to retire as soon as possible.
The supporters point first of all to the fact that we can simply work for a short time and enjoy free time for a long time. Older people also have more problems finding employment for themselves, which means that early retirement can improve their situation.
On the other hand, one should not forget that the lower retirement age is a serious problem for the pension system itself and for pensioners themselves . Early retirement also means less money saved, which in turn translates into lower retirement benefits.
This problem will primarily affect women who will work shorter and have a longer life expectancy, so even at the same sum as men will have a lower pension – the amount collected is then divided into a larger number of months.
Also, a lower retirement age means more burdens for people who are currently working. ZUS will have to collect a larger sum from those currently employed to allocate it to current pensions. This may lead to serious financial difficulties of the Social Insurance Institution in the long run.