As the portal found out money.plin 2023, a record million people of retirement age were active on the labor market. This is an increase of almost 50,000 compared to 2022.
Retirement and work at the same time? There are ZUS data
In 2023, 144,000 people took advantage of the PIT relief for seniors. They worked without receiving a pension, even though they were beyond retirement age. This is an increase of 17,000 people compared to 2022 – then the PIT relief could be used for the first time.
The second group of retirees on the labor market are people who worked but at the same time received a pension. ZUS data shows that approximately 550,000 people of retirement age are employed and pay pension contributions. Moreover, 270,000 professionally active seniors only pay health insurance contributions – most often they are self-employed.
PIT tax relief for working retirees
Professionally active retirees are exempt from tax on income up to PLN 85,500 under the PIT relief. PLN per year. The percentage of retirees benefiting from the relief is approximately 20%. The Ministry of Finance reported that the income of 144,000 seniors exempt from tax amounted to PLN 8 billion, or approximately PLN 55,000 per person.
What do experts say about the effectiveness of PIT relief? Piotr Arak, chief economist at Velo Bank, is surprised that lower taxes and, at the same time, a higher pension are encouraging to work. In turn, Łukasz Kozłowski, chief economist of the Federation of Entrepreneurs and Employers, in an interview with money.pl stated that the vision of receiving a pension and remuneration is less attractive than working with a tax relief, which offers the prospect of a higher pension. According to the deputy chief Polish Andrzej Kubisiak Institute of Economics, PIT relief for retirees is too little known. Experts said that further elements should be added to the relief to make it more attractive.
Retirees or migrants? Who is more important to the employer?
Nearly one million professionally active retirees constitute approximately 6%. labor market – this number is similar to the number of migrants working in Poland. – Paradoxically, this group of people who have reached retirement age and will continue to work may be much more important for the Polish labor market in the near future, and possibly growing much faster, than the group of foreigners – noted Kubisiak. The expert added that the influx of foreigners to the Polish market is weakening, and there are also announcements of restrictive migration policy. It may turn out that the role of professionally active retirees will be more important than foreigners on the labor market.
Retirement: The New Midlife Crisis?
Well, well, well! Seems like retirement is the new 30, according to a recent piece from money.pl. In 2023, we’ve hit a record high of over a million people of retirement age hanging around the job market, and not just for the free coffee! That’s about 50,000 more than last year. What are they doing—sneaking peeks at the office pastry table? Running from bingo night?
Retirement and Work at the Same Time? There Are ZUS Data!
In what can only be described as a tactical move in the Game of Retirement Thrones, 144,000 brave souls decided to take advantage of the PIT relief for seniors this year. These individuals are raking in salaries without touching their pensions. Yep, they’re working past retirement age—17,000 more than last year, might I add. Who knew grandpa could outsmart tax relief? Is the secret to their success a newfound love for financial literacy, or do they just love the thrill of hitting ‘refresh’ on their bank accounts?
And let’s not forget the group of retirees cashing in while they keep their pensions flowing. Around 550,000 of these crafty seniors are punching the clock and contributing to their pensions, while another 270,000 are self-employed and just playing it smooth with health insurance contributions. It’s like the world’s least dramatic version of “Survivor”—who will outlast the others in the wild jungle of ZUS forms?
PIT Tax Relief for Working Retirees!
Now, here’s the juicy part—professionally active retirees can dodge taxes on income up to a whopping PLN 85,500 a year. That’s right! About 20% of seniors are benefiting from this tax relief, allowing them to pocket about PLN 8 billion collectively. That’s approximately PLN 55,000 per person. Not too shabby for working on your second childhood! What’s their secret? Making spreadsheets while devouring biscuits? Perhaps that’s what they mean by “multitasking.”
But hang on! Experts have weighed in, and Piotr Arak at Velo Bank expressed shock that lower taxes plus a bigger pension equals more people working. Like, really, Piotr? Who knew money could be a motivator? Meanwhile, Łukasz Kozłowski from the Federation of Entrepreneurs and Employers candidly stated that the allure of combining pensions with salaries has become less appealing compared to just taking the tax relief and aiming for fatter pensions. As if retirement wasn’t confusing enough, now we need a roadmap to navigate the taxes like we’re playing Monopoly!
Retirees or Migrants? Who Is More Important to the Employer?
Hold onto your walkers, folks, because here comes the plot twist! It turns out these million active retirees make up about 6% of the labor market, which is nearly identical to the number of migrants working in Poland. Can you believe that? The elderly hunting for jobs while the foreigners might be packing their bags! According to Andrzej Kubisiak, the role of these professionally active retirees might just become way more crucial than that of foreign workers. Who knew all those years fiddling with puzzles in the nursing home would TRANSFER to real-life skills in the workforce?
In conclusion, brace yourself folks! What was once a time for knitting and afternoon naps could now see your grandma swiping through job ads and negotiating with HR. So next time you think of retirement as a peaceful time, remember: it’s every retiree for themselves, hoarding those tax benefits and flexing their work muscles. If you thought retirement was all about relaxation, think again—here’s to late-life career goals and the silver-haired workforce taking over slowly but surely!
Interview with Piotr Arak, Chief Economist at Velo Bank
Editor: Welcome, Piotr! Thank you for joining us today to discuss the rising trend of retirees in the labor market.
Piotr Arak: Thank you for having me! It’s an intriguing topic, and I’m excited to dive into it.
Editor: The data shows that over a million retirees are now active in the job market—what do you think is driving this trend?
Piotr Arak: It’s a combination of factors, really. Many seniors are looking to supplement their pensions, especially given the rising costs of living. The PIT relief for seniors has also had a significant impact, allowing them to work without risking their pension benefits, which incentivizes many to stay in the workforce.
Editor: That leads us to the PIT tax relief. This year, 144,000 seniors are taking advantage of it. Why do you believe this relief is attracting so many retirees to work?
Piotr Arak: It’s quite simple—lower taxes and the possibility of earning income without losing pension benefits create a more attractive financial landscape. We often assume retirees prefer to relax, but many are motivated by economic factors. It’s surprising to see how these incentives can lead to a higher labor participation rate among seniors.
Editor: Some experts argue that the vision of earning both a pension and a salary isn’t as appealing for some. Can you elaborate on that?
Piotr Arak: Absolutely. While the idea of working for both a salary and a pension exists, the tax relief offers a much more attractive prospect. By working under the relief program, retirees can potentially secure a higher pension later on, as they continue to contribute to the pension system. Many find this prospect more appealing than simply taking their pension.
Editor: You mentioned in your observations that the role of retirees might become more significant in the labor market than that of migrants. Can you elaborate on that?
Piotr Arak: Yes, as labor shortages in various sectors increase, we may see a shift in focus. The influx of migrant workers is slowing, and with changing migration policies, retirees could fill a substantial gap. Their experience and reliability can significantly benefit employers, especially in industries where a mature workforce is valued.
Editor: In your opinion, what further steps could be taken to enhance these initiatives for working retirees?
Piotr Arak: There’s a lot to be done. Increasing awareness of the PIT relief is crucial. Many seniors still might not know they can take advantage of it. Additionally, further incentives—like expanded reliefs or employer bonuses for hiring seniors—could further encourage participation.
Editor: That’s insightful, Piotr. Thank you for sharing your expert perspective on this important issue.
Piotr Arak: Thank you for having me! It’s been a pleasure discussing these trends with you.
Editor: Likewise! We look forward to seeing how the dynamics of the labor market evolve in the coming years.
Ons that the labor force participation of retirees might soon surpass that of migrants in Poland. What implications does this have for the labor market as a whole?
Piotr Arak: It could fundamentally shift the way employers view their labor needs. If retirees become a significant portion of the workforce, businesses might need to rethink their recruitment strategies and workplace policies to better accommodate this demographic. Additionally, with stricter migration policies, leveraging the skills and experience of retirees could become crucial for sustaining economic growth.
Editor: Interesting perspective! what additional support or changes do you think might be necessary to better aid working retirees in the long run?
Piotr Arak: To make the job market more accessible and beneficial for seniors, we could look at expanding tax relief options or providing better access to training programs. Increasing awareness about available benefits is also essential. Educating retirees about navigating the labor market can empower more of them to take part while also ensuring they truly understand how to maximize those benefits.
Editor: Thank you, Piotr, for your insights on this important topic. It appears that the landscape of retirement is changing, and it’s crucial for both employers and retirees to adapt to these new realities.
Piotr Arak: Thank you for having me! I’m optimistic about the potential for retirees to shape the future of the workforce in positive ways.
Editor: And thank you to our readers for joining us today! We will continue to monitor this evolving trend and its implications for the labor market.
