Retirees' Subjective Assessment of their Post-Retirement Financial Positions in the Light of Existing Standard of Individual Replacement Rate

• Autorzy: Agnieszka Bielawska , Arkadiusz Kozłowski
• Języki publikacji: EN

Abstrakty

EN

It is assumed that the replacement rate for the first pension based on the last earnings or pre-retirement income should account for 60-80% to ensure that the standard of living during retirement is maintained. Meanwhile, the replacement rates for old-age pensions paid by the Social Insurance Institution (ZUS) have successively been declining. This paper aims at verification of the pension security standards in the light of the subjective assessment of the financial positions of pensioners for whom the main source of income is an old-age pension paid by the Social Insurance Institution (ZUS) and the acceptance of a decline in the old-age pension in relation to the previous earnings. The article applies a dependency analysis based on data obtained from a declarative survey carried out in 2018 on a representative group of 1,500 people, of which for 1,336 people the pension paid by the Social Insurance Institution was their main source of livelihood. The survey shows that as many as 47% of respondents whose replacement rate was at the level of 2/3 of their last salary indicated that their individual financial positions deteriorated after retirement. A similar result was obtained for the assessment of the financial position of the entire household. At the same time, 40% of respondents whose pension was 1/3 less than their last income indicated that this decline was unacceptable to them. Comparing the declaration of acceptance of a decrease in pension income and the actual replacement rate, it can be noted that 96% of those with a replacement rate of 2/3 of their last income indicated that they could not afford a higher decline of the replacement rate. At the same time, as many as 60% of respondents with a replacement rate of 2/3 of their previous income indicated that the income of a spouse/partner was a necessary or important supplement to the retiree's income. Thus, in the subjective assessment of retirees, a replacement rate of 2/3 of previous income is regarded as a necessary minimum rather than an income that ensures a comparable standard of living during retirement. This conclusion points to an even greater challenge in securing adequate resources in retirement. (original abstract)

Słowa kluczowe

PL

System emerytalny; Emerytury; Ludzie starsi; Standard życia

EN

Pension schemes; Pensions; Elderly people; Standard of living

• Czasopismo: Polityka Społeczna
• Rocznik: 2022
• Numer: nr 1 (ang) Social Security Systems in the Light of Demographic, Economic and Technological Challenges
• Strony: 26-30

Twórcy

autor

Agnieszka Bielawska

• University of Gdansk

autor

Arkadiusz Kozłowski

• University of Gdansk

Bibliografia

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Identyfikatory

DOI

10.5604/01.3001.0016.1390