Retirement and disability pensions in Poland are collected by almost 9 million. people. The lowest pension on the Vistula is USD 1,000 gross.
Will there be credit loans for pensioners?
It is twice less than the minimum wage. Such a low benefit must be taken into account by people who have small work experience. For women, it is 20 years and for men 25. People who do not meet this requirement – get even less. Unfortunately, young Poles are not worried about the amount of their future retirement.
According to forecasts, today’s 30 and 40-year-olds will receive hunger benefits. Experts say that the pension in 2035 will be 1/3 of the last salary.
The average retirement pay is USD 2,150 gross. The median is lower, USD 1930 gross. These figures are pale compared to the old Union pensions. The average German pension is around 1000 dollars. One of the elements that have an impact on raising the retirement benefit is valorization.
The indexation of 2020 was 0.44 percent. Therefore, a person who receives USD 1,000 can count on an increase of USD 4.44. It will be a bit better in 2021. According to government forecasts, pensions will increase by 2.4 percent next year.
In order to improve the financial situation of seniors, the government is considering the provision of credit loans for pensioners.
Interestingly, the money paid out can improve the creditworthiness of the oldest. It is worth noting that earlier free medicines for seniors were introduced. The program covered people over 75 years of age.
The state will spend USD 2.5 billion on credit loan for pensioners
Due to the negative birth rate and increasing life expectancy, retirees are an increasingly numerous social group. In 2021, the Ministry of Family of Labor and Social Policy will spend USD 2.5 billion on the credit loan retirement benefit.
The Ministry of Finance is working on the implementation of the project. The benefit will be included in the 2021 budget. The project is at the consultation stage.
Will all pensioners be included in the benefit?
Unfortunately, unlike the credit loan benefit, which is paid once a month, the tribute to seniors will be a one-time supplement to the pension, paid once a year – probably during the Christmas and New Year’s period. At present, it is not known how many seniors will receive the benefit and what the award criteria will be.
Also, the project does not specify how much the “payment” will be and whether all beneficiaries will receive the same amounts. According to MRPIPS calculations, between 5 and 6 million people will receive money.
credit loan increases creditworthiness
The traditional 500+ benefit has a real impact on improving the consumption and the financial situation of the poorest. Furthermore, financial institutions recognize the government’s flagship program as a real improvement in creditworthiness. It should also be noted that money for children improves the conditions for receiving a cash loan.
However, in the case of mortgages, the program has no effect on improving capacity. Due to the fact that money from the credit loan project can be paid out for a maximum of 18 years (reaching the child’s legal age). However, the loan repayment time is usually 25-30 years.
According to the survey “Situation on the Consumer Finance market” conducted by KPF, in 2016 2.2 percent of the respondents allocated the received money to the repayment of overdue liabilities. In 2020, the number of responses dropped to 1.6 percent. This may mean that credit loan has a real impact on the repayment of debt.
Thanks to credit loan pensioners it will be easier to get a loan
Benefits for retirees and pensioners will be paid once a year. Therefore, in the case of banking products that are incurred for higher amounts and for a relatively long repayment period, additional money for seniors will not affect creditworthiness.
Loan companies will look differently at assessing the creditworthiness of a pensioner withdrawing credit loan. Due to the fact that non-bank institutions grant loans for lower amounts. Therefore, the service seems to be an ideal cover for online payday loans, which is paid off with a one-off payment.
It is also worth noting that some lenders grant their first payday loans for free. Thus, if the consumer incurs USD 1,000, the benefit received will allow him to repay at least half of the liability. Payday rankings are a good way to find the optimal financial product.
Pensioner – a reliable borrower
According to BIG Info, the debt of older people is USD 1.9 billion. The reason for taking loans is, among others reduction of income after finishing work. Seniors also take loans for younger family members. Financial institutions value older people because of their solid income and timely repayments. Hence, some loan companies have special offers for retirees.
Some non-bank institutions set an upper age limit of up to 80 years. It is worth noting that in the event of the borrower’s death, the commitment is repaid by the immediate family. Because the inheritance of the deceased’s debts is inherited.
How do you calculate your creditworthiness?
Creditworthiness is affected by:
- Net monthly earnings
- Monthly Expenses
- Number of family members
- The sum of other liabilities
- Timely repayment of previous loans
There are many factors that affect creditworthiness. It is worth noting that loan companies look much more softly at potential borrowers than banks. In order to take out a loan from a bank, you must have an employment contract. However, for loan companies, the form of employment does not matter much.