One decision can significantly increase your pension. ZUS explains the mechanism.

The decision to retire is one of the most important moments in one's professional life. Many seniors wonder whether it's worth applying immediately upon reaching retirement age, or whether it's better to wait. ZUS (Social Insurance Institution) emphasizes that a later start date for benefits may mean a significantly higher monthly payment.

The mechanism is exceptionally simple: working longer, you accumulate more contributions, and at the same time, the period over which your pension is paid shortens. This means that even a delay of just a few years can significantly increase your benefit amount.

The basic formula is clear: accumulated pension capital (contributions and initial capital, increased by annual indexation) is divided by the average life expectancy , expressed in months. This means that with later retirement, the numerator in this equation increases and the denominator decreases. The result? A higher monthly pension.

The Social Insurance Institution (ZUS) provides specific data on its official website. If someone retires at age 60, each additional year of work increases their benefit by an average of 3.7%. For someone who turns 65, the increase is approximately 4.1%. By postponing the decision for five years, you can increase your pension by over 20% . Furthermore, additional contributions are transferred to your account, and the funds already accumulated are subject to annual indexation, further increasing your capital .

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ZUS (Social Insurance Institution) illustrates this with a simple example. A person who has saved PLN 100,000 by age 60 will receive a pension of approximately PLN 375 per month. If they wait until age 65, with the same capital, the benefit will increase to approximately PLN 453. In practice, this means a difference of nearly PLN 80 per month, and with larger savings , the difference becomes even more pronounced.

Waiting to retire also benefits from the indexation mechanism . ZUS increases the balance of accounts and sub-accounts annually, and the indexation rates can be quite high. For example, in recent years, they have reached as much as 10 percent. For someone with accumulated capital of several hundred thousand złoty, such an increase translates into a real increase in their future benefit by hundreds of złoty.

The decision regarding the date of retirement should be tailored to individual circumstances . Financial considerations are not the only factors to consider, but also health, employment prospects, and family circumstances. For many people, postponing retirement by a few years can have a significant impact on their future income.

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However, it's important to remember that not every senior can afford to remain active in the workforce for extended periods . Before making a decision, it's worth consulting a pension advisor at the Social Insurance Institution (ZUS). A specialist will review your individual calculations, compare available options, and help you choose the most advantageous solution.