Pensions: Lowering the retirement age will charge the budgets of local governments? – PortalSamorzadowy.pl

The Presidential draft lowering the retirement age can have an impact not only on the financial situation of the Social Insurance Institution or Agricultural Social Insurance Fund, but also the condition of local governments. When the law enters into force in the coming years for social welfare centers can apply up to 600 thousand. people.

Local authorities believe that the vast the majority of retirees will have to benefit from social assistance because their income will fall drastically (Fig. shutterstock)

Local authorities believe that the vast the majority of retirees will have to benefit from social assistance because their incomes drop drastically. In this group to be the person receiving the lowest benefits, which will be eligible for various forms of support from social welfare centers – reports Dziennik Gazeta Prawna.

Read also: The act of lowering the retirement age and the amount of tax-free already Sejm

the concerns of local governments shared by experts from the area of ​​economics. They note that fewer and fewer people will be working on those already inactive. This in turn can cause the proceeds not only to the state budget, but also to the cashier local governments may be lower. In addition, a smaller number of economically active persons will be less consumption – inactive people spend less. According to economists, this may translate into poorer health of local trading and service companies, which in turn will reduce the income of local taxes. What’s more, older people have to spend from the budget – the local government – more money – reports Dziennik Gazeta Prawna.

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