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Pension and retirement indexation. How much higher benefits will seniors receive in 2025?

How much will the indexation of pensions and retirement benefits be?

The annual indexation of benefits is something that seniors eagerly await. The “O2” portal explains how the indexation rate is calculated. The date when we will learn the final amount of the indexation in 2025 has also been provided. How much will the benefits of Polish seniors increase??

Annual indexation of pensions and retirement benefits

The purpose of the annual indexation of pensions and retirement benefits is to adjust the amount of benefits paid to seniors not only to inflation, but also to the changing standard of living. It is to stabilize the financial situation of seniors and adjust it to changing economic conditions.

The indexation rate is calculated based on the inflation rate combined with wage growth. According to information provided by the “O2” portal, a larger share of wage growth may be taken into account when calculating the indexation rate. This is the postulate raised by Agnieszka Dziemianowicz-Bąk. For seniors, this would mean a higher increase in their benefits.

How much will pensioner benefits increase in 2025 year

Inflation in the past year is no longer as high as it was in previous years. Despite this, the government plans to increase the lowest pension by just over PLN 103. This means that the minimum pension benefit would increase from the current PLN 1,780.96 to PLN 1,884.61 gross.

The most likely scenario assumes that the indexation rate will amount to 5.82% next year. This is therefore a lower rate than in previous years. In 2024, it was 12.12%, and a year earlier it was as much as 14.8%.

Traditionally indexed benefits will reach seniors in March 2025. Economists point out that it is necessary to adjust the method of indexing benefits to the dynamically changing economic situation.

Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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