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Raising the Effective Retirement Age as a Challenge for the Polish Labour Market

Author

Listed:
  • Cecylia Sadowska-Snarska
  • Marta Marzena Sosnowska

Abstract

Purpose: The aim of this article is to analyse the effective retirement age in Poland compared to other countries and to present the necessary actions aimed at extending professional activity in the context of solutions used in public policies of EU Member States Design/methodology/approach: The study was prepared based on a critical review of subject literature, analysis of source documents, including legal acts, and statistical data. Comparative analysis tools were also used. Valuable information for international comparisons was found in research reports of the Organisation for Economic Cooperation and Development (OECD), Eurostat, or the European Foundation for the Improvement of Living and Working conditions (Eurofound), Poland’s Social Insurance Institution (ZUS). Findings: The results show that Poland still belongs to the group of countries with a relatively low effective retirement age, which may have a negative impact on the sustainability of the pension system and the situation in the labour market. A comparison of statistics shows that the effective retirement age increased in most EU countries between 2012 and 2023, and Poland remains one of the countries with the lowest average retirement age. This is particularly evident for women, whose working lives are much shorter than in the Scandinavian or Benelux countries. The analysis also showed that not only legal conditions, but also health issues, the labour market situation and financial incentives are important determinants of retirement decisions. The results of the research indicate that the lack of coherent mechanisms to encourage longer professional activity remains an important problem. Although the so-called zero-level PIT for seniors, introduced in 2022, has contributed to increasing the number of people remaining in the labour market after retirement age, its impact on the overall increase in the effective retirement age remains limited. ZUS data show that most people retire immediately after obtaining rights, which indicates the low effectiveness of the existing solutions. Comparison with other EU countries suggests that effective strategies for increasing effective retirement age should include not only financial incentives but also improving working conditions and developing flexible forms of employment. A crucial factor in this context could be the implementation of the concept of sustainable work, including the adaptation of the working environment to the needs of older workers and the development of care facilities that could reduce the burden of caring for family members. Practical implications: A paper recommending future actions of decision-makers in the field of retirement age, taking into account the Polish context. The results of the study indicate an urgent need for reforms in the field of labour market policy and pension system, aimed at effectively raising the retirement age in Poland. Further efforts are needed to develop incentives to work longer, as well as to educate the public about the benefits of delaying the decision to retire. Originality/Value: The originality of the conducted analysis of the level of effective retirement age in Poland in comparison with other EU countries lies in providing important conclusions regarding the challenges and opportunities for extending the working life of the older population. This topic is crucial at a time of dynamic demographic change, with an ageing population, a reduction in working potential, and the threat of inefficiencies in the social security system and low pension provision.

Suggested Citation

  • Cecylia Sadowska-Snarska & Marta Marzena Sosnowska, 2025. "Raising the Effective Retirement Age as a Challenge for the Polish Labour Market," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 307-325.
  • Handle: RePEc:ers:journl:v:xxviii:y:2025:i:2:p:307-325
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    More about this item

    Keywords

    Effective and statutory retirement age; labour market; labour force participation; sustainable work.;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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