The IMF praised Poland’s economic growth but recommended equalizing the retirement age for men and women, a detail Finance Minister Andrzej Domański omitted in his social media post.
IMF Analysis Praised, Key Recommendations Omitted
Minister of Finance Andrzej Domański shared on social media the latest analysis from the International Monetary Fund (IMF). The analysis indicates that the Polish economy is set to grow faster than the global average and the fastest among large EU countries.
However, behind these optimistic projections lie specific and firm recommendations that the head of the ministry did not mention in his post. The key proposal from the IMF is to equalize the retirement age for women and men.
The Situation for Women: Work Until 2030 and Beyond
The situation is particularly difficult for women, who currently end their professional activity five years earlier than men. The IMF recognizes this as an element of the system requiring urgent correction. The proposed plan is concrete.
This scenario would allow for a reduction in pension expenditures by approximately 0.3% of GDP in the coming years. Thanks to this, Poland would ensure the country’s financial stability.
Why the IMF is Pressing for Equal Retirement Age
Experts warn of a demographic catastrophe. If no changes are made, future benefits will be meager. According to the Fund’s calculations, the lack of reform will lead to a drastic reduction in the pension-to-last-salary ratio – from the current 45% to just 30% by mid-century.
In practice, this would mean that the average pension would approach the level of the minimum benefit. To prevent this, it is necessary not only to equalize the retirement age but also to increase contribution burdens for individuals running businesses.
Poland: A Growth Leader, Facing a Difficult Choice
Although Minister Domański is pleased with the 0.4 percentage point revision of GDP growth, the IMF report clearly states that without retirement age reform, the economic success may be short-lived. The document emphasizes that unfavorable demographics pose a serious threat to the stability of the entire system.
