Extending the retirement age is simply a subject that regularly returns to public debate in Poland and Europe. Changing demographics, expanding life expectancy and expanding financial burden on pension systems make the request for work to a later age increasingly considered. Will Poles truly gotta work for 75 years old? We analyse facts, data and possible scenarios.
Why is there talk of raising the retirement age?
Poland, like another European countries, is struggling with the problem of an ageing society. According to the Central Statistical Office (GUS), by 2050 the individual above 65 years of age will constitute 33% of the population, while presently it is around 19%. Meanwhile, the number of people of working age (18-64 years) is steadily decreasing.
Pension system based on the rule of generational solidarity (the alleged ZUS system) requires those working to finance benefits for pensioners. As a result, an expanding number of pensioners, while reducing the number of workers, creates immense force on the state budget. In 2024 the Polish Social Insurance Fund (FUS) showed a deficit of more than PLN 37 billionwhich had to be covered by the state budget.
How does Poland compare to Europe?
The current retirement age in Poland is:
- 60 years for women,
- 65 years for men.
It is 1 of the lowest retirement ages in Europe. By comparison, in Germany the retirement age is now 67 yearsand in Denmark it is planned to be raised to 74 years until 2060. The trend of longer working lives is besides seen in countries specified as Sweden, the Netherlands and the United Kingdom.
75 years – real script or exaggeration?
Experts stress that work up to 75 years old it may be essential in a fewer decades unless appropriate reforms are undertaken. Elongating age (average life expectancy in Poland is now 78 years) means that pensions must be paid for a longer period of time, which increases the costs of the scheme.
On the another hand, critics of this thought indicate that many people, especially those working physically, are incapable to do their work until specified a late age. In Poland, the average life expectancy in wellness is only 60.5 years for women and 59.4 years for men, which means that a large proportion of people will not live to see a healthy pension.
Alternatives to extending retirement age
Instead of raising retirement age, the government may consider another solutions:
- Supporting seniors' professional activities – Flexible forms of employment, part-time work or the anticipation of combining pensions with work can increase the income of older people without having to full retreat from the labour market.
- Tax reform – Improving the efficiency of taxation collection and reducing the grey region could supply additional resources to the state budget.
- Incentives for Saving Old Age – Individual pension accounts (IKE, IKZE) and worker Capital Plans (PPK) can aid Poles build additional financial safety for the future.
- Automation and upgrading of qualifications – Investing in education and vocational training can increase workers' productivity, which in turn translates into higher revenues into the pension system.
Public opinion and extension of retirement age
The subject of the retirement age raises immense emotions among Poles. According to a CBOS survey of 2024, 68% of respondents opposes raising the retirement age. The biggest opposition exists among older people and those working in sectors specified as construction, agriculture or industry, where work is peculiarly physically exhausting.
At the same time, awareness of the request for change is growing. Over 42% of Poles considers that the current pension strategy needs a thorough reform, but only 15% supports the thought of working until the age of 75.
Raising retirement age is simply a hard and controversial subject, but it cannot be ignored in the face of an ageing society and financial problems of the pension system. Although working until the age of 75 seems to be a distant script now, the future may require compromise from both the government and society. The key to success will be to find a balance between the financial needs of the state and citizens' capabilities and health.
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Poles will gotta work until they are 70? Government quietly prepares for change
