The Polish government will have to bear an extra cost of 0.4-0.9% of GDP annually to year 2050 due to lower retirement age, the European Commission said in a European semester country report on Poland.
“The direct impact of the bill will require additional fiscal means for supporting the pension system equivalent to around 0.4 % – 0.9 % of GDP per year up to 2050,” the report reads.
“Hence, unless effective measures are taken to encourage people to extend their careers above the statutory retirement age, the recent change will worsen the sustainability of public finances,” it said.
The government has already passed a law reducing retirement age to 60 for women and 65 for men. Poland’s previous legislation envisaged hiking the retirement age gradually to 67 for both genders.
(Warsaw Voice)
