Poland, like many another countries, faces a serious demographic challenge. Annually, the number of people aged 65+ is expanding and, as a result, their financial situation is becoming more worrying. According to the data, elder citizens in Poland are presently in debt to nearly PLN 12 billionand the number of people with debts in this age group is increasing. The article will look at this hard situation, taking into account various factors affecting the financial problems of seniors.
Growing elder debt in Poland
According to data Central Statistical Office, in 2023 the number of people in Poland aged 65 and more increased by 197 thousand, reaching the number over 7.5 millionwhat constitutes 20.1% of the full population. Although ageing is simply a natural phenomenon, it has a crucial impact on the finances of the elderly. The increase in life expectancy and the low fertility rate make seniors an increasingly large group, while struggling with financial difficulties.
Debt among seniors grows all year. At the end of November 2024, the debt of people over 65 was close to PLN 12 billion. Among the indebted seniors are people with unrealised instalments of loans, loans, as well as unpaid bills and rents.
What affects the financial situation of seniors?
Experts point to respective key factors that contribute to elder financial problems. According to the study BIG InfoMonitorau 72% of seniors In Poland, he expresses concern about his financial situation. The most crucial causes are listed increased cost of living, high interest rates on loans, and inflationwhich peculiarly affects the aged with limited income.
Prof. Waldemar Rogowski of the School of Economics indicates that seniors are more susceptible to the effects of economical change. In this age group, where income is frequently fixed or low, and the desire to work in employment is limited, changes in the financial marketplace have a much greater impact on regular life.
How do seniors effort to manage their finances?
To improve their financial situation, seniors take different steps. The study says 49% of seniors surveyed Bet on reducing unnecessary expenditurewhich is the most commonly utilized financial management strategy. Another common method is search for promotions and price offers (36% of subjects). 20% senior it decides to accumulate savings, although in this age group the percent of savers is considerably lower than among younger generations.
Unfortunately, it's just 2% senior plans to take steps to expanding your financial knowledge, which is very low compared to another age groups. This may propose that the older generation has less educational opportunities and besides deficiency resources to invest in learning financial management.
Regional differences in elder debt
Senior debt in Poland is not uniform. There are clear regional differences in terms of debt to 65+ people. Most indebted seniors live in voivodships Kuwaiti-Pomeranian and West Pomeranianwhere the full amount of elder debt is respectively over PLN 2.5 billion and PLN 1.5 billion. In these regions, elder citizens are peculiarly susceptible to the effects of advanced costs of living, as well as the difficulties associated with reduced earning opportunities.
In turn voivodships specified as Podlasie, Opole is Saint Mary’s have importantly lower debt among seniors, ranging from PLN 190 million au PLN 242 million. It is worth noting that these differences arise from the diversity of economical situations in different regions of Poland and local social conditions.
Future projections
Despite pessimistic forecasts among seniors, which indicate that 22% of them, they fear the deterioration of their financial situation, experts stress that demographic change and the increase in the number of older people in Poland will have a immense impact on social policy and the pension strategy in the coming years.
The increase in the number of seniors in Poland can lead to major problems in the area of public finances, especially in the context of expanding expenditure on social assistance, wellness care and pensions. Therefore, it will be an crucial step to implement systemic solutions that will let for better support for elder citizens and aid them manage their finances.
The financial situation of seniors in Poland is increasingly worrying. The debt of this age group is increasing, and economical change, specified as inflation or advanced lending rates, has a negative impact on their lives. Although seniors take action to improve their financial situation, their capacity in this area is limited. It is worth that the state and financial institutions in Poland should take further steps to support older people, both in terms of financial education and the adaptation of banking products to their needs.
More here:
Debt seniors in Poland – almost 400 1000 people in debt. What's the situation?
