3 sides of 1 coin – Long-term Fiscal Stability, Adequacy and Intergenerational Redistribution of the reformed Old-age Pension System in Poland

Janusz Jablonowski () and Christoph Müller ()
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Janusz Jablonowski: National Bank of Poland
Christoph Müller: Albert-Ludwigs-Universität Freiburg

No 145, NBP Working Papers from Narodowy Bank Polski

Abstract: In this paper we evaluate the long-term performance of the Polish public pension system from three perspectives: fiscal stability, intergenerational redistribution and adequacy of pension benefits. We assess the two recent public pension reforms undertaken in Poland: 1) the shift of a part of pension contributions from the funded to the unfunded pension pillar and 2) the gradual increase in retirement ages to 67 for both men and women. The results suggest that the combined effect of both reforms shows a significant improvement in cash balances until 2040. The burden of the reforms is shared relatively equally across generations. The effect of higher retirement ages on benefit levels is also positive, especially for those having standard job contracts. What is worrying, however, is the general future drop of benefit levels, in particular for the group of self-employed persons. Policy makers should, therefore, start discussing possible measures today if they aim to avoid a significant increase in old age poverty in the future.

Keywords: Generational Accounting; fiscal sustainability; fiscal policy; Poland; pension reform (search for similar items in EconPapers)
JEL-codes: H30 H50 H55 H60 H68 J10 (search for similar items in EconPapers)
Pages: 124
Date: 2013
New Economics Papers: this item is included in nep-age, nep-dem and nep-eec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpmis:145

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