On the Aviva’s website there is a pension calculator available which can be used to calculate one’s own future pension coming from Social Insurance and Open Pension Funds.
On the Aviva’s website there is a pension calculator available which can be used to calculate one’s own future pension coming from Social Insurance (ZUS) and Open Pension Funds (OFE). The calculator suggests also how much extra money one should save in order to live at a satisfying level once their retirement age comes.
The calculator is available at Aviva’s website: www.aviva.pl/kalkulator
Instructions for use
In the calculator one has to enter their funds existing on the Social Insurance (ZUS) account, as well as to provide the amount of pension funds gathered on their Open Pension Funds (OFE) account.
Therefore, it is necessary to refer back to two letters: one of them entitled "Information in regards to the account of the person insured by the Social Insurance (ZUS)" that is received on annual basis from Social Insurance; the other letter comes from Open Pension Funds in regards to the funds gathered on the account with them (information regarding Open Pension Funds can be also available on the internet from one’s own fund).
Then, it is required to provide the details regarding one’s own income and all the extra pension funds an individual has so far managed to gather (third pillar). The next step is the statement of what monthly pension payment an individual considers being satisfactory.
The result of the calculations brings us to an individual pension gap, in other words – information that tells us how much extra money we should still gather in order to meet our expectations as for the retirement standard of living. The calculator suggests what amount of money should be regularly put aside and invested in. Systematic saving of nominal amount of money (eg equivalent of a packet of cigarettes per day) yet done over a number of years is the basic means for us to substantially increase our future pension.
Why to do this?
"In our thinking there are many worries and unrealistic expectations about pension and there is not enough of financial planning. The calculator will help us to answer two questions – to what pension I am entitled to so far and what can I do to increase it? The earlier we start pension planning, the greater influence we will have on when we cease our professional activity and what we can afford on our retirement. Otherwise, the reality will surprise us in a negative sense," says Piotr Szczepiórkowski, deputy chairperson on Aviva Life Insurance Group plc.
Pension gap is big
In 2010 Aviva, together with a consultancy company called Deloitte, estimated that the annual pension gap for the European Union countries equals to €1.9 billion. This amount equals to approximately 19% of EU countries’ GBP in 2010. It shows how much extra saving has to be done by people who are planning to retire in years 2011-2051 and who wish to have pension equal to 70% of the final salaries.
Annual pension gap for Poland in years 2011-2051, calculated according to applied methodology, equals to PLN 275,2 billion.
Annual pension gap for a Pole in the same period of time on average equals to PLN 13,600, ie more than PLN 1,100 per month.
Persons who at the moment start their employment are in a better situation as they have more time to gather enough of savings. The problem is however greater for persons who are nearly reaching their retirement ages.
"Therefore, it is necessary to calculate one’s own pension gap and take a decision regarding an additional saving. Polish people have all the crucial information at hand – but the barrier is the low level of awareness. Public and private companies can work together in regards to pension education.
"It is especially needed after reduction of Open Public Funds (OFE) contribution, which means that the responsibility for the future pensions has shifted towards Social Insurance (ZUS) and Poles’ individual prudence. One of the ways out may be to make payments into an Individual Retirement Account (IKZE), which will be available from 2012, with the government’s support meaning offering reliefs in personal income tax (PIT)," says Piotr Szczepiórkowski.
Research in Europe terrifies
The research requested by Aviva and conducted in seven European countries (in Poland, France, Italy, Ireland, Spain and Turkey) shows that seven out of 10 respondents at the age of 55+ continually believe that the money from the government system will take the leading role in paying for their pensions. 44% of the respondents in the same age group say that in order to live at a decent level, they require pension of a comparable amount to their salaries. Only 25% of the respondents do not at all save up for their pension or leave their savings for that purpose.
On the other hand, among European respondents at the age of 18-34 there is clear lack of interest in regards to future pension. 55% of the respondents claim that they focus on ongoing expenditures rather than on long-term needs. 1/3 of the respondents admit that they do not understand how the pension system works. At the same time, 60% of the respondents worry that they will not have enough money once they retire.
-ends-
Information:
Bohdan Białorucki, press spokesman
Telephone: (22) 557 43 41 / 501 781 140
E-mail: bohdan.bialorucki@aviva.pl
Grzegorz Mathea
Telephone: (22) 557 43 70
E-mail: grzegorz.mathea@aviva.pl
Notes to editors:
Aviva is the sixth insurance group in the world and is the market leader in the United Kingdom. The group operates in 28 countries in Europe, North America and Asia. It provides services to 53 million clients, achieves annual revenues of £50 billion and manages assets valued at £380 billion. Aviva has been operating in Poland since 1992 (up to May 2009 as Commercial Union).
The company is a pioneer in modern life insurance and is one of the two leaders among pension funds. The company also offers investment products, property insurance for companies and individual customers, group life insurance and employee retirement plans. It serves 3.5 million customers and manages assets worth of over PLN 65 billion. Additional information: www.aviva.pl, www.avivainvestors.pl, www.aviva.com.