Poles may have to work five to ten years longer within the next decade and a half, warns Prof. Marek Góra, co-author of the 1999 pension reform. In his view, the minimum retirement age should be unified for men and women, and a credible starting point could be 63 for everyone – followed by a clear path of increases.
The debate about retirement ages in Poland has gained momentum after Katarzyna Pełczyńska-Nałęcz, minister of funds and regional policy, argued that it is time to stop differentiating the minimum retirement age by gender. Góra, head of the economics department at SGH Warsaw School of Economics, agrees with this position.
– The minimum retirement age in the universal system should be equal for everyone, regardless of any individual characteristics beyond our control – said Prof. Marek Góra in an interview with money.pl.
– There are no good arguments for differentiating it. By keeping a lower minimum retirement age for women, we act to their detriment – added Góra.
Demographic pressure and longer working lives
Góra believes it is positive that the topic has entered the public debate, because people are starting to realise that a change is inevitable. He points to demographic trends, the age structure of the population and increasing life expectancy as the main drivers.
– Thanks to that, people begin to understand that sooner or later something will have to be done in this matter. It is enough to look at demographic trends, the age structure of the population and the lengthening of life to understand what follows from all this – said Góra.
His forecast is blunt: in ten to fifteen years, Poles will have to work longer – not by one or two years, but by five or ten. Góra stresses that current politicians do not control this process, but their declarations shape public perception and influence whether people prepare for a longer professional career.
– We will have to – and probably also be able and willing to – work longer. And not by a year or two, but by five or ten years. Today’s politicians have no influence on this. However, what they say shapes the social perception of what will undoubtedly happen. Their declarations determine to some extent whether people take action to prepare for inevitably longer careers – noted Góra.
Swedish inspiration and the 63-year scenario
Góra points to Sweden as a sensible reference point. The Swedes introduced their current pension system on the same day as Poland, setting the initial retirement age at 61 for both sexes. Today it stands at 64, while a separate age threshold for income support from outside the pension system is 66 and is also being raised.
– The Swedish model draws a clear line between two things that are mixed up in Poland. There is a universal pension system that returns people what they paid into it, plus a rate of return. In this system, the minimum retirement age has a warning function: you can start using your money in the system, but it is worth delaying it. Meanwhile, support from the rest of society is offered only to those who, despite working until 66, have not accumulated enough to cover monthly payments at the level considered minimum – explained Góra.
– In Poland, the recommended retirement age could be set at 63, but with a clear signal that it will be raised, so that it is not perceived as a permanent reduction of the retirement age for men. However, the age entitling people to receive a supplement from the rest of society to the amount currently considered minimum would have to be higher – concluded Góra.
Source: WNP.PL, Photo: KPRM / Flickr.com / CC 4.0 BY-NC-ND
