Pension in Poland: who is entitled to it and how can a migrant get it?

How pension savings are formed in Poland

Pensions in Poland are formed from the same 19.5% of monthly deductions from salaries. They are divided like this:

• 12% goes to the state social insurance system (this level is called distribution level),
• 7.5% of the funds go to the accounts of OPF (open pension funds). This element of the system is cumulative.

The levels shown are mandatory. There is another one - individual. This includes personal savings and deposits of Polish citizens in their old age into the accounts of various insurance commercial organizations.

As a result, with a minimum of advertising and practically no propaganda, by 2000, 85% of the entire working population who had the right to choose OPF joined the new system, which gave elderly Poles some guarantee of a comfortable old age.

Features of the Polish pension system

The collection of amounts for social and health insurance, as well as the distribution of pensions in Poland, is in charge of ZUS - the social insurance administration. It is social insurance that guarantees the right of citizens to obtain all kinds of compensation associated with the loss of a job. This also includes payments for various types of benefits.

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Not only Poles, but also citizens of other countries who reside in the country legally can use ZUS funds. All citizens of other states, together with native Poles, must pay contributions from their income to this fund and be registered in it.

How are pension savings formed in Poland?

All deductions for pension insurance reach 19.52% of income (gross). One part of the payments is paid by the employer, the other by the insured person himself.

In 2014, from July, at the choice of the insured person, 2.92% is transferred to an open pension fund (optional), or to a ZUS account.

If the employee has not chosen any open pension fund, then 19.52% of the income accumulates in his personal account in the Social Security Fund.

Retirement age and length of service

In 2021, from October, the Polish government lowered the age for applying for pension benefits. For the female population this was 60 years, for the male population - 65 years.

The main component in calculating the compensation received is the length of service. For pensions that were assigned before 2000, length of service is the only component that affects the amount of payments. Having 20 years of experience (women) and 25 years (men) can qualify for the smallest payments. With more years, the payments increase.

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If you do not have the required length of service, and the years for pension payments have come, you can apply for payments below the established minimum.

Amounts of insurance pensions in Poland in 2021

Compensations for partial accruals correspond to 50% of the calculated ones, and are paid to the Social Insurance Fund. Only after reaching the established retirement years, the payment increases to 100%.

Important! The payment is reduced by the amount of payments that were received earlier.

Minimum and maximum pension in Poland in 2021

From the beginning of 2021, the Polish government decided to increase the minimum payments for people in retirement years. They amounted to 1,100 zlotys . The amount of partial payment will reach 825 zlotys (214 dollars ). The number of people with such payments is 5% of the total number of pensioners.

Changes have also occurred in payments to farmers, employees and teachers.

During the year, it is planned to increase payments by 3.26%, which is 70 zlotys. Up to 6.2 million people will receive new payments. This is especially necessary for those whose income does not reach 2147.30 zlotys.

On average, old-age benefits reach 40% of the average income of the working-age population and amount to 3 thousand zlotys ($779) . Although these payments are quite high compared to neighboring countries, they are not enough for a normal existence. After all, most of the funds go to pay for utilities.

The size of the maximum payments is not recorded anywhere. It can only be noted that no more than 4% of pension applicants receive maximum payments.

Payments to disabled people and military personnel

Former military personnel fall into the category of people with the highest payments. Benefits are available to both officers and enlisted men whose total number of years in military service is at least 15 years. This applies to the 55 year old age category for men and the 50 year old age category for women. The size of such payments reaches 75% of the average military income.

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Disabled people are not deprived of payments either. In case of complete disability, up to 900 zlotys of assistance are paid, in case of partial disability – 750 zlotys.

Pension calculation rules

The amount of future payments is proportional to the contributions that were deducted from wages. The pension formula consists of contributions/number of months of expected pension compensation.

If a pensioner has received benefits for three years, then after his death his relatives can claim a one-time payment - guaranteed.

Minimum and average pension in Poland

In general, Polish pensioners do not complain about payments. Today, the minimum pension provision is set at 1000 zlotys. At the September 2021 exchange rate in rubles, the minimum Polish pension is about 16 thousand rubles.

But such security must be earned through experience: 15 years or more for women, 20 years or more for Polish men. If the length of service is insufficient, then pensioners receive only social benefits, which are much lower than the minimum payment.

The highest pension in the country is 2.5 thousand zlotys (approximately 40 thousand rubles), only 5% of all pensioners receive it. The average payment (and 50% of Poles receive such a pension) is 1200-1500 zlotys, that is, 19.5-24 thousand rubles.

But pensioners have the opportunity to receive additional payments to their pension. It's not all that simple though. Such payments are assigned:

• when a Pole reaches the age of 75 (he must be completely disabled);
• veterans (war, labor);
• citizens with secret (state) knowledge;
• orphans who have lost both parents;
• former military men who worked in the mines;
• deported prisoners in the camps of the Second Reich.

Polish pensioners also have the right to receive additional income by getting a job. In this country, official employment does not affect the size of pension benefits.

Retirement age in Poland: what age do men and women retire?

According to current legislation, women can retire and receive their due pension payments upon reaching 60 years of age, and men - 65 years of age. At the same time, in order to accrue an insurance pension, a woman must work for at least 20 years paying pension contributions, and a man must work for at least 25 years.

Reducing the retirement age in Poland in 2021

When the pension reform was carried out in 1999-2000, it was assumed that the retirement age would gradually increase and by 2040 it would reach 67 years for all citizens, regardless of gender. This decision caused a wave of popular discontent. The new government coalition, after a lot of debate and disagreement on this issue, nevertheless decided to refuse to raise the retirement age and, even moreover, to lower it to 60 years for women and to 65 years for men. The resolution came into force on October 1, 2021.

State support for Polish pensioners

Elderly pension recipients whose provision is less than PLN 1,500 per month are provided with:

1. Benefits for medical services in private paid clinics and hospitals, which greatly relieves the burden on the state medical structure.
2. Payment from 50% of housing and communal services (or even 100%!)
3. Free medicines after 75 years. Or preferential prices for them.
4. Preferential travel. Or free travel on public transport (in some cities of the country).
5. 2 times a year the opportunity to purchase a discounted ticket for railway transport and travel in any direction.

And also, if a pensioner needs guardianship over him, he can contact the social service. The only thing worth considering is that in this situation he will need to prove that there are no relatives who can take care of him.

Quality of life of pensioners in Poland

Receiving modest benefits compared to European payments, Polish citizens can live even on an average pension. This is due to the fact that there are various pension programs in the country. This applies to all areas of life.

But there is a category of people who, left without loved ones, have become incapacitated. For them, the only way out is a nursing home. But the problem is that there is a shortage of available places in government institutions of this type. In private institutions, you have to pay up to 3,000 zlotys per month, which is higher than the minimum and average payments.

Life of Polish pensioners

Why do older citizens in Poland live well despite their not-so-high pensions? There is a simple explanation for this.

1. Cheapness of food. For example, a kilogram of meat in a Polish supermarket can be bought for 4 zlotys (which is only 64 rubles). Cheap compared not only to Russia, but also to neighboring countries. Farmer's fairs are very common, where products can be purchased not only inexpensively, but also of high quality.
2. Opportunity to work. A pensioner can get a well-paid job. Salaries in the country are very decent.
3. A pensioner who cannot cope with paying rent can count on government assistance (up to 100% of expenses).
4. Opportunity to travel around Europe. In addition, within the Schengen zone there are discounts and benefits for pensioners. A plane ticket for an elderly Pole can cost as little as 20 euros. Entry into the country is visa-free.
5. Pensioners in Poland can attend cultural events (museum tours, galleries, libraries), courses, various trainings, educational clubs (for example, computer) for free or for a minimal price. The state, charitable foundations and similar organizations actively organize leisure activities for older people.

Which countries have low pensions?

As before, payments remain low in countries that were previously part of the USSR and the CIS .

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Free health insurance

All insured citizens in Poland have the right to free medical care. Compulsory insurance is provided to all working Polish citizens, with the result that children under 26 years of age and spouses who are not working are insured without any contributions. Even the unemployed do not pay any contributions.

The right to free benefits is retained for insured persons and their family members if medical care is provided by a doctor who has entered into an agreement with the National Health Fund and is called a medical expert. The National Health Fund (NFZ) was created in 2004, replacing the previously 17 health insurance funds.

Who can receive a pension

Each country has its own requirements for insurance coverage and age.

In Ukraine, in order to retire in 2021, you need to have 27 years of insurance experience and be 60 years old. Ukrainian women can retire this year at 59 years and 6 months, but starting next year the age for them will be 60. The insurance period will also increase over the years, but for now the conditions are the same.

However, do not confuse insurance experience with regular experience. The insurance period is not how long you worked, but how many months you or someone paid social contributions for you to the Pension Fund of Ukraine or to a similar fund in another country, for example ZUS in Poland.

Interesting How much richer are Poles than Ukrainians: salary levels, pensions and GDP

Economy of Poland

GDP

In 2021, Poland's nominal GDP was $566 billion. In Ukraine – $153.78 billion, which is almost 4 times less.

Import Export

Poland is an important trading partner of Ukraine, but for us it is more important than we are for it . In 2021, Poland became the second country to which Ukraine exported the most goods and the fourth from which it imported.

But Ukraine did not even make it into the top ten countries to which Poland exports, occupying a share of only 2.1%. The share of Ukrainian imports in Poland is even lower – 1.2%.

Poland cooperates most with European countries (Germany, Czech Republic and Great Britain), as well as with Russia and China.

Trade in Poland / figurniysergey.com

What is the secret of Poland's success

This difference in the standard of living of Ukrainians and Poles is primarily due to the fact that Poland is part of the European Union, which pours significant funds into the region. It was thanks to this help that Poland managed to develop.

How the EU funds Poland

Between 2007 and 2013, Poland received 56 billion pounds (approximately $74 billion) of funding from the EU. While countries were suffering from crisis and unemployment rates were rising, Europe was investing huge amounts of money in the Polish economy, especially in the construction sector. From 2014 to 2021, another 60 billion pounds ($78 billion) were allocated for Poland, writes Reuters.

I wonder if Belarusians are richer than Ukrainians: salary levels, pensions and GDP

Now the EU continues to invest money in Poland again. In particular, in March, when the pandemic was just growing in Europe, the EU planned the allocation of funds to each of its member countries to combat COVID-19. Interestingly, the largest amount was allocated to Poland - 7.43 billion euros. Despite the fact that the country was far from the leaders in terms of the disease. For example, a significantly smaller amount was allocated to Italy, where the disease was the highest at that time - 2.32 billion euros.

Economic indicators of Ukraine and Poland / Infographics 24 channels

How to get a pension in post-Soviet countries

Poland and Portugal have agreements signed with Ukraine on a proportional basis. That is, they pay for the time that they specifically worked for them. But the countries that were part of the Soviet Union (except for the Baltic countries) or the socialist camp have agreements with Ukraine on a territorial basis.

Pay attention: We eat a lot or have a low salary: why Ukrainians are among the world leaders in food spending

If a Ukrainian worked in Russia, Hungary or Belarus, and now lives in Ukraine, he can receive a pension here. To do this, you need to provide the Pension Fund with documents about your work experience abroad and your salary.