All about retirement insurance
Retirement is a very important topic - it is worth taking an interest in it and taking care of our future. Despite the hype around pensions, due to the changes that have been in force since the beginning of 2013, many people do not know exactly what we are talking about.
In order to avoid a surprise situation when we have to confront the effects of decisions made in the past (or the lack of them), it is worth addressing the subject of retirement now. First of all, it is worth considering ...
... what is retirement?
Pension insurance is included in the scope of social insurance. It is a financial benefit that provides protection in the event of incapacity for work due to old age. People who pay the pension insurance contribution thus secure an income when they stop working after reaching the appropriate age. There are two pension systems in Poland ...
... old retirement pension - applies to people born before January 1, 1949, who have reached the retirement age and have documented the required employment period, and people born after December 31, 1948, but before January 1, 1969, who met the conditions entitling to the so-called early retirement. In this system, the retirement age for women is 60, and for men - 65. In order to take advantage of this benefit, it is also necessary to achieve an appropriate insurance period, which is 20 years for women and 25 years for men. The second system in force since 1999 is the so-called ...
... new retirement pension - it applies to people born after December 31, 1948. In this system, seniority is not important. However, it is necessary to properly fund the insurance account.
People born between 1949 and 1968 had a choice between the old and the new systems, but had to make that decision between March and December 1999.
In the current legal situation, the aim is to equalize the retirement age for men and women - there will be one limit - 67 years. By the end of 2012, women were entitled to a retirement pension after reaching the age of 60. In men, the limit was 65 years. In accordance with the amendment to the regulations introduced by the Act of May 11, 2012 amending the Act on pensions from the Social Insurance Fund and certain other acts, gradual changes are planned - from the beginning of 2013, the retirement age is to increase by one month every four months. Therefore, the level of 67 will be reached for women in 2040 and for men in 2020.
Thus, for women born from January 1, 1953 to March 31, 1953, the retirement age is at least 60 years and one month; born from April 1, 1953 to June 30, 1953 - at least 60 years and two months; born from July 1, 1953 to September 30, 1953 - at least 60 years and three months, etc. The target retirement age (67) will be for women born after September 30, 1973.
By analogy, for men born from January 1, 1948 to March 31, 1948, the retirement age is at least 65 years and one month; born from April 1, 1948 to June 30, 1948 - 65 years and two months; born from July 1, 1948 to September 30, 1948 - 65 years and three months, etc. The target retirement age (67 years) is for men born after September 30, 1953.
Things are different in the case of, inter alia, uniformed services and miners - until the end of 2012, these professional groups had a lower than the common retirement age. After the changes, new rules of retirement apply to people joining uniformed services after July 2012 - the retirement age is now 55 years, and the service period has been extended to 25 years. In addition, the government has announced that in the future the privileged retirement conditions will apply only to miners working directly in mining.
After reaching retirement age, capital is collected on the insurance account - most often it amounts to 50-60 percent. what we have earned throughout our professional life. In Poland, the pension system is divided into the so-called three pillars. The first available source of pension funding is ...
… 1st pillar. Here, the funds come from the Social Insurance Institution (ZUS). This pillar is managed by the state as the disbursement of funds from this pillar is guaranteed by the state. Payment of contributions that are sent to ZUS is the responsibility of every employee. From the current gross salary, 12.22 percent is deducted for this purpose. the whole sum. Each insured person has an individual account with ZUS, to which this amount is transferred every month. Since the system of the first pillar is based on a generational agreement - the pensions paid are financed from the contributions of those currently working - the funds accumulated on the ZUS account do not bear any interest. Moreover, the accumulated sum is not inheritable, so it is lost when the insured person dies. The issue of pensions is solved differently in ...
... second pillar. These are the so-called Open Pension Funds (OFE). The difference is that, unlike the first pillar, OFEs are managed by private entities. People born after December 31, 1968 must select an OFE, if it is not allocated automatically. 7.3 percent goes to the account related to the second pillar. monthly gross salary. Here, the funds are invested - the company managing the insured person's individual account tries to multiply the capital accumulated on it. In the event of death, the sum of funds accumulated on the account is not lost - it is inherited by the person indicated in the contract.
The decision to select an OFE is made at the time of commencement of the first job. Pursuant to the applicable regulations, the employee has 7 days from commencement of work to choose the fund. However, the OFE draw takes place only twice a year - on the last working day of January and July. Therefore, an employee who missed the binding deadline still has a chance to voluntarily choose an OFE (it all depends on when he started work). The last possible source of pension financing in the new system is ...
Did you know that you can postpone the date of paying ZUS contributions?
... 3rd pillar. It is completely voluntary and is a possible supplement to your future pension. It can be said that this is the money we put aside for the so-called "Black hour". It should be remembered that, as a rule, the annual basis for calculating pension contributions in a given calendar year may not exceed the amount corresponding to thirty times the forecast average monthly salary in the national economy for a given calendar year. Thus, if someone earns, for example, 40 average salaries during the year, his pension will be calculated from the contribution charged on three times the average national salary. The rest of these contributions will have a positive effect on your salary, so at least some of this money is worth investing in the third pillar.
In this pillar, money is collected on the Individual Retirement Account (IKE) or through the Employee Pension Schemes (PPE). In the case of the first of them, the methods of saving are, for example, bank deposits, capital insurance, investment funds and independent investing on the stock exchange. IKE accounts are offered by: insurance companies, banks and brokerage houses. On the other hand, PPE defines organized, group, systematic savings for future retirement. Contributions of program participants are calculated and paid by the employer to the selected financial institution. These financial institutions operate according to their own rules - insurance company, investment fund or are managed by a foreign manager. The exception is the Employee Pension Fund (PFE), which is an entity created specifically to collect funds under the PPE. PFE is managed by the Employee Pension Society, which is established exclusively for this purpose.
Knowledge about pension insurance is not hard to master. The basic information about them should especially be familiar to people who are just starting their professional careers. If there are any doubts, it is worth dispelling them immediately at the source - be it with the employer, ZUS, or Open Pension Funds.