Working better than relaxing in retirement? An interesting phenomenon in the pandemic

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Many Poles who acquire the right to retire in 2020 prefer to continue working rather than give up their activity and retire exclusively, “Dziennik Gazeta Prawna” reports. The newspaper states that potential retirees currently account for about 5% of professionally active people.

As”DGP” calculates, in 2020 at least 850 thousand people of retirement age will be active on the labor market, including 552 thousand women and 297 thousand men. However, it is not known whether they collect pensions and work or work without benefit payments. Nonetheless, they make up about 5 percent of the labor market, which now includes 16.5 million people, a “surprisingly large number,” according to economists.

See also: The army of poor pensioners is growing. One in six is already below the extreme poverty line

Potential retirees during the pandemic preferred to keep their jobs

According to Andrzej Kubisiak from the Polish Economic Institute quoted by the newspaper, the number should be around 100 thousand lower. As the expert emphasizes, one can see an increase in professional activity in the 55 age group, and this is a desirable phenomenon for demographic reasons.

Kubisiak also explains that, contrary to appearances, the pandemic crisis has hit the young harder than the group of workers reaching retirement. This is due, among other things, to the fact that young people often work in the sectors most affected by the crisis and lockdowns.

See also: Pension increase in 2021 will be bigger than government expected

The number of newly awarded pensions was lower in 2020 than the year before, at 293,000. As “DGP” points out, although it could have been expected that pensioners in uncertain times would want to acquire the right to benefits as soon as possible, this did not happen. The newspaper points out that this is a sign of adopting a defensive strategy of sticking to one’s current job instead of reaching for a pension.

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