2016-07-20
FOR Communication: Lowering of retirement age: Losses for future retirees, workers and the economy
- The government adopted the worst of all considered variants, deciding to unconditionally lower the retirement age to 60 years for women and 65 years for men. This decision means that everyone loses - old age pensioners, workers, and the economy as a whole.
- Polish society is aging rapidly - by 2040 the increase in the number of people over the age of 65 will be one of the highest among EU countries. At the same time, the Polish government is the only one to lower the retirement age, rather than increase it - and to the lowest level in the EU in the case of women.
- The lower retirement age means:
- A shorter working time and a longer period in retirement, which means starvation pensions for future retirees, particularly women.
- More pressure to increase pension supplements, and the need to raise taxes to finance it.
- A smaller number of people working and consequently slower economic growth.
- The lower retirement age will result in the future in more pressure on the migration of young people from Polish. While pensioners in the country will not emigrate, young taxpayers can "vote with their feet" and leave the country. In times of peace, the key impetus for migration are the differences in living standards. Poland is currently the sixth poorest country in the EU; lower retirement age; slowering the economic growth will further hinder us in catching up with the living standards of Western European countries. At the same time higher taxes, needed to finance the lower retirement age, will primarily hit the income of young people, even more discouraging them from working in Poland.
Full communication by FOR (in Polish) available to download here.
You are welcome to contact our experts:
Aleksander Łaszek, Chief Economist at FOR
[email protected]
Rafał Trzeciakowski, Economist at FOR
[email protected]
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