Balcerowicz - government pension plan ‘not sufficient’

photo - balcerowicz.pl

Leszek Balcerowicz, a former central bank chief and one of the architects of Poland’s ‘shock therapy’ reforms after the fall of communism, told Polish Radio this morning that the forthcoming bill to raise retirement ages for both men and women to 67 years old, which Prime Minister Donald Tusk said on Tuesday would be ready for parliament over the next few weeks, "goes in the right direction" but "is not able to sufficiently compensate" for Poland's demographic problems.

Poland’s birth rate has fallen over the years while people have been living longer – meaning that less people are adding to pension funds as the number of those drawing pensions increases.

Prime Minister Tusk highlighted on Tuesday that the ratio of Polish workers to pensioners is currently at 3:1, but that by 2040 it may well be 2:1, and by 2060 1:1.

"We have no doubt that the Polish reality of the 2040s, 2050s, and 2060s will see a shortage of workers," Tusk said.

Currently, women in Poland retire at 60, while men do so at 65. Tusk wants this to be levelled at 67 for both sexes, with the transition achieved by gradual increases every four months as of 2013, with the men fully adjusted to the new system by 2020.

Balcerowicz told Polish Radio that a low retirement age, coupled with a high minimum wage had contributed to the economic crisis in Greece.

Balcerowicz dismissed opposition to the bill by conservative opposition party Law and Justice (PiS) as "the ostrich strategy" of burying one's head in the sand, by ignoring demographic forecasts. (nh/pg)

Source: IAR