Future pensions to be even lower

The pension benefits of today’s 30-year-olds will be so low that they may find it necessary to work after  reaching the retirement age. Some of those people should now consider being covered by additional private or employee-provided social insurance systems.

“There are a number of factors that affect the amount of our pensions,” said Gertruda Uścińska, president of Poland’s Social Insurance Institution (ZUS). She pointed to the longer and longer life expectancy that makes the period during which benefits are paid longer.

Uścińska noted that today so-called replacement rate stands at around 56%, but in 2040 it may fall below 40% and in 2060 – below 30%. The rate shows the proportional relation between one’s pension and last salary. 

(Business Insider)