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Poland


Polish Flag Poland

Poland’s retirement income system was reformed in 1999. The new system, which applies to people born after 1968, comprises a minimum  public pension and an earnings-related system with notional accounts. The overall system is in transition from a pay-as-you-go system to a funded approach. There are also voluntary employer sponsored pension plans and individual pension accounts but due to limited incentives they are unpopular, even though the new system provides low replacement rates.  In 2014 the government introduced laws which aim to limit activity of Pillar 2 pension funds through transferring 51.5% of their assets invested in bonds to fund the Social Security Institution.

The overall index value for the Polish system could be increased by:

  • maintaining a significant role for Pillar 2 pension funds in the system
  • raising the minimum level of support available to the poorest pensioners
  • introducing a requirement that part of the retirement benefit from private pension arrangements must be taken as an income stream
  • raising the level of household saving
  • increasing the level of funded contributions thereby increasing the level of assets over time
  • increasing the labour force participation rate at older ages as life expectancies rise

RRF19921 MMGPI Report 0616 Chart WEB 1000x950 21 POLAND1 Poland

Progressive Results: 

Year

Overall

Adequacy

Sustainability

Integrity

2016 54.4 57.9 41.2  67.3
The Polish index value fell from 56.2 in 2015 to 54.4 in 2016 primarily due to a reduction in the net replacement rate.
2015 56.2 61.8 40.6 69.0
The Polish index value fell slightly from 56.4 in 2014 to 56.2 in 2015 due to a number of small changes.
2014  56.4  61.7  41.4  68.9
The Polish index value fell from 57.9 in 2013 to 56.4 in 2014 due to a number of small changes.
2013

57.9

64.4

42.6

68.9

The Polish index value fell slightly from 58.2 in 2012 to 57.9 in 2013 due to a number of small  changes.
2012

58.2

63.6

43.4

70.1

The Polish index value fell slightly from 58.6 in 2011 to 58.2 in 2012 due to our introduction of the Worldwide Governance Indicators and a reduction in their net household saving rate. These reductions were partly offset by the change in scoring for the level of investment in growth assets
2011

58.6

64.3

40.7

74.5


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