Differences between retirees are widening

As a result of this year’s indexation, the number of people receiving high benefits increased. At the same time, there were also more people with penny pensions – informs “Rzeczpospolita” on Tuesday.

As the newspaper emphasizes, “this is the result of the ZUS analysis of the structure of the amount of benefits after indexation in March 2023”. “Due to rising inflation, inflation has been historically high this year. From March this year retirees and pensioners received 14.8% higher payments. And the lowest old-age pension, disability pension, survivor’s pension and social pension increased to PLN 1,588.44 (from PLN 1,338.44).

According to the daily, “ZUS data show deepening differences between pensioners”. “There has been a significant increase in number of people receiving pensions in the amount of over 7,000 zloty. In March 2022, it amounted to 108,000, and a year later to 258,800. (increase by 139.6 percent).

“This is the effect of this year’s high valorization. In the new system, it is not possible to make such a large jump in the amount of the benefit based on accumulated contributions, only for professional activity. We have to divide the accumulated capital by the average further life expectancy. As a result, contributions paid just before retirement do not give much, and the most important thing is the valorization of what the insured person has collected during his work” – analyzes Dr. Tomasz Lasocki from the Faculty of Law and Administration of the University of Warsaw.

As “Rz” adds, “the data show that at the same time the number of pensions lower than the minimum is also growing.” “And so, in March 2022 it was 341.3 thousand, and a year later it was 368.5 thousand. (increase by 8%). (PAP)

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