Poland 2011

Poland’s retirement income system was reformed in 1999. The new system, which applies to people born after 1968, comprises a minimum 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.

The following table shows Poland’s position when compared to the 15 other countries and some of the indicators that either scored relatively well or poorly.

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

• raising the minimum level of support available to the poorest pensioners
• raising the level of household saving
• introducing a requirement that part of the retirement benefit from private pension arrangements must be taken as an income stream
• increasing the level of funded contributions thereby increasing the level of assets over time
• increasing the labour force participation rate.