Important changes in ZUS. They concern the money of millions of Poles

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The Social Insurance Institution is introducing significant changes in the calculation of pensions, which will come into force from April 2024. The key element of these changes is the introduction of new life expectancy tables developed by the Central Statistical Office. These changes have a direct impact on reducing the amount of future pensions.

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Changes to the calculation of pensions

New life expectancy tables of the Central Statistical Office, which reflect the increase in the average life expectancy of Poles, are now used by ZUS to calculate pensions. Based on these tables, the pension is calculated by dividing the accumulated pension capital by the average life expectancy. According to the new data, people aged 60 can expect to live 9.9 months longer and people aged 80 6.1 months longer than previous statistics.

Currently, pensions already granted will not be automatically recalculated based on the new tables. A conversion can only take place in certain situations, for example if the retiree continues to work and pay pension contributions. In such a case, additional contributions may be included in the benefit, but using the latest table only in relation to these additional contributions.

The effect of new tables on the amount of pensions

The use of new tables results in a reduction in the amount of pensions:

• A 60-year-old woman with a capital of PLN 700,000. PLN will receive a pension lower by approximately PLN 103 per month.
• A 65-year-old with the same pension capital will receive a benefit lower by approximately PLN 136 per month.

The reason for these reductions is that pension capital is divided over a larger number of expected life months, leading to lower monthly payments.

Who is affected by the changes?

People approaching retirement age should carefully consider their situation and possibly consult with a retirement advisor to understand how best to respond to the changes and what options they have to minimize the negative effects of the new regulations. The changes apply to people who will reach retirement age between April 2024 and March 2025. These people have the opportunity to use a more favorable table – the one in force at the time of submitting the pension application or the one in force when they reached retirement age.

ZUS always checks which of the tables is more favorable for the applicant, which may be important for people who may consider delaying retirement in order to take advantage of better conditions.

Editor-in-chief of the website. Graduate of Journalism and Political Science from the University of Warsaw.

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