'Ideal moment' for Poles to save for retirement: official

Without the new pension savings scheme, “people born in the 70s and 80’s will retire on EUR 280-300 per month in 2050 , compared to the present average of EUR 500” one of the initiators of the PPK funds told Polish daily.

“The disposable income of households is currently 20-25 percent higher than their expenditure,” Bartosz Marczuk, the Vice Chairman of the Polish Development Fund, one of the initiators of the new three-tier contributory pension fund scheme told daily Dziennik Gazeta Prawna. Mr Marczuk says that the launch of the PPK scheme in July this year is an ideal moment to encourage Poles to take advantage the present period of growth to start planning their pensions.

“There was no good product on the market, which would have encouraged people to start savings,” he said as previous savings schemes had concentrated on tax incentives, rather than giving the carrot of employers paying into the scheme.

According to the Institute of Structural Analysis (IBS), the number of pensioners in Poland is going to double by 2060. Polish women can now retire at 60 and men at 65, after the upping of the pension age to 67 was reversed by the present government. There are indications that many pensioners are continuing to work after retirement in order to supplement their pensions.

The Institute points out that the number of economically active people will sink from the current 27 mln to 16 mln by 2060.