The accounts of Poles at the Social Insurance Institution have been credited with a total of PLN 472.9 billion. How is this possible? It happens so that the money accumulated in citizens' accounts at ZUS does not lose value. This annual valuation takes place every year, in June. This year it was 9.81% – the Ministry of Family, Labour and Social Policy reports. It has a real impact on pension amounts, but only in some cases.
Who can expect a higher benefit?
The June valuation will not increase pensions for those already receiving benefits. Those beneficiaries see no change. The difference will be felt by those who are about to apply for a pension. If they do so after the valuation they can expect significantly higher benefits, up to PLN 300 gross. How much higher depends on how much capital was accumulated in the pension account and at what age the employee decides to retire. For women who have accumulated PLN 600,000 in their pension account – as calculated by “Fakt” – they would retire at age 60 before the valuation and receive PLN 2,231 per month, and after the valuation PLN 2,450. If they retire at age 64 before the valuation the monthly pension would be PLN 2,590 gross, and after the valuation PLN 2,843 gross. If the pensioner starts receiving benefits at age 65, before the valuation they would receive PLN 2,694 gross per month, and after PLN 2,958. Retiring at age 68 the difference is even greater. The monthly benefit would be PLN 3,045 gross before the valuation and after it would be PLN 299 higher, i.e. PLN 3,344 gross. The difference is even higher when the accumulated capital is higher.
Importantly, Poles are fully aware of how this works, so July and August are the months with the most applications from people who decide to retire that year (provided they meet all criteria, such as reaching retirement age – editor’s note).
Two such periods in a year
July is not the only period in the year with increased interest in applying for a pension. The next such moment is February. In March the pension and retirement valuation takes place, which also affects benefit amounts. Although next year it will not be as attractive as before. According to “Fakt”, which cites government estimates, the valuation will be only 3.48%.
As representatives of the Social Insurance Institution emphasize, the decision on when to retire is an individual one. It is good, however, if it is supported by an analysis of profitability. This can be done, for example, using the pension calculator available on the eZUS platform, and also with the help of a pension advisor. This position is available in client service centers at ZUS offices.
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