Many people wonder what kind of pension they will receive after reaching the minimum retirement age. Two factors are key here: age and work experience. One could assume that 40 years of work automatically means a high pension. In practice it is not so obvious.
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The Polish pension system is based on two main conditions: reaching the minimum retirement age (60 years for women, 65 years for men) and appropriate length of service. The minimum experience is 20 years for women and 25 years for men, which guarantees a benefit of at least PLN 1,871.92 gross.
As “Gazeta Prawna” reminds, the actual amount of the pension depends on the accumulated pension capital, the level of earnings during the professional career and the statistical life expectancy published by the Central Statistical Office.
60 years, 40 years of work – how much will your pension be? The amount may surprise you
Pension capital includes indexed insurance contributions, initial capital (for people working before 1999) and funds accumulated on the sub-account at ZUS. Therefore, the amount of earnings and contributions paid throughout the entire period of work is of key importance.
Although 40 years of work is impressive, the amount of the pension depends mainly on the level of earnings. People who have been earning the minimum wage all this time can count on a benefit slightly higher than the minimum pension – approximately PLN 1,900-2,000 gross.. In turn, those who earned at or above the national average level, they can receive up to approximately PLN 6,600 gross.
See also: Extra money for people born between 1949 and 1969. Poles don't know about it
Pensions in Poland are indexed annually. The first indexation, in March, applies to already paid benefits and takes into account the inflation rate and wage increases. The second one, in June, updates the funds accumulated on the accounts and subaccounts of the insured, which affects future pensions.
