Millions of Polish citizens are about to get a stark look at their financial futures as the Social Insurance Institution (ZUS) begins distributing “information about the status of an insured account.” These documents, accessible via the electronic service platform, paint a sobering picture, suggesting that future pensions may fall considerably short of current income expectations.

The projections could be particularly alarming for those in their forties, with forecasts indicating that pensions may only replace 30-40% of their current earnings. For example, an individual earning PLN 6,000 gross today might only receive around PLN 2,000 in retirement.

Why the Projected Shortfalls?

These “horror lists,” as some have dubbed them, are the result of meticulous calculations of accumulated contributions and simulations of future benefits based on current payment levels.

If we start thinking about retirement at the age of 40 or 50, it’s a bit late.

according to Gazetaprawna.pl, ZUS President zbigniew Derdziuk points to several contributing factors. These include delayed entry into the workforce due to extended education, contribution “holidays,” and initially lower contributions from those utilizing “small ZUS” benefits. He cautions that delaying retirement planning until the fourth or fifth decade can be detrimental.

Who Receives These Forecasts?

The letters are being sent to individuals born after 1948 who have made at least one premium payment and have not yet been granted a pension.Those over 35 will also receive a simulation of their potential future benefits. ZUS emphasizes that this is not merely informative but a crucial warning: “There are no miracles here. We will get so many contributions, then we will get it.”

Despite a ample 14.41% valorisation of contributions in June, which increased retirement savings by PLN 566 billion, experts temper expectations, noting that the underlying problem of low benefits persists.

Women Lose double

A significant disparity exists between men and women.”Despite the identical gross remuneration, women can expect much lower pensions than men. This is a difference of over PLN 1,500 a month, despite the same earnings and contributions,” emphasizes Piotr Juszczyk, the main infactic analyst.

This discrepancy arises from a lower retirement age for women,resulting in a shorter contribution period. Additionally, women’s longer life expectancy means their retirement capital is distributed over a greater number of months. Consequently, many women, even with average earnings, may only receive a minimum pension. In contrast, a man in a similar situation might expect approximately PLN 2,800 gross.

How to Avoid a “Hunger Pension”

Experts concur that extending one’s working life is crucial for a higher pension. They advise women to seriously consider delaying their retirement. Each additional year of work significantly boosts pension benefits.

However, simply working longer is insufficient. Additional savings through individual retirement accounts, individual retirement security accounts, or employee capital plans are also essential. these measures may be the only way to ensure a dignified retirement and avoid financial hardship.