Abstract
<p><strong>Purpose</strong> - The aim of the study was to assess the effects of introducing the formula of defined contribution, as analyzed from the perspective of pension adequacy in Poland.</p><p><strong>Methodology</strong> - The main research methods employed included literature studies, theoretical considerations, and an empirical analysis of statistical data.</p><p><strong>Findings</strong> - The Polish pension system may be closer to balancing, but at the expense of lowering the replacement rate, which under the current conditions may even fall below the poverty threshold. Extending the universal retirement age may partly improve the financial situation of future pensioners, especially women.</p><p><strong>Originality/Value</strong> - In conclusion, it was observed that the legislators’ excessive preoccupation with maintaining long-term financial sustainability is not conducive to the achievement of other important goals of the pension system, such as ensuring the adequacy of pensions and preventing elderly people from falling into poverty. In light of the above, further reforms may still be required.</p>
Highlights
The 1999 reform of the Polish pension system introduced many important changes, including a shift from a defined benefit system to a defined contribution system where the formula for calculating pensions is concerned (ZUS, 2016, p. 12)
IJSR 7 will at least partially compensate for the projected decrease in replacement rates, one of which entails extending the period of professional activity (Wiktorowicz, 2014, p. 7), which can be achieved by increasing the universal retirement age (Ratajczyk-Tuchołka, 2012, pp. 64–69; Owczarek, 2009, p. 4) or postponing individual employees’ retirement decisions (Sztanderska, 2008, p. 70)
After analyzing the tabularized data above we observe that the dynamics of pension fund expenditures grew faster than the dynamics of the number of retirees, with a significant decrease in the average pension as from November 2017
Summary
Purpose – The aim of the study was to assess the effects of introducing the formula of defined contribution, as analyzed from the perspective of pension adequacy in Poland. Methodology – The main research methods employed included literature studies, theoretical considerations, and an empirical analysis of statistical data. M Findings – The Polish pension system may be closer to balancing, but at the expense of lowering the replacement rate, which under the current conditions may even fall below the poverty threshold. Extending the universal retirement age may partly improve the financial situation of future pensioners, especially women. U with maintaining long-term financial sustainability is not conducive to the achievement of other important goals of the pension system, such as ensuring the adequacy of pensions and preventing elderly people from falling into poverty. In light of the above, further reforms may still be required
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