Monday, 17 March 2025
The total debt of Polish pensioners has decreased by PLN 0.9 billion over the past year, reaching PLN 5.65 billion, according to the latest data from the National Debt Register (KRD). Despite the overall reduction, the average debt per senior has risen from PLN 18,800 to PLN 19,000. The number of indebted retirees recorded in the KRD database has also declined, dropping from 349,100 in January 2024 to 296,300 currently.
According to Adam Łącki, President of the National Debt Register, nearly 53,000 pensioners have successfully paid off their arrears, which is a positive signal considering the financial challenges many seniors face. He noted that retirees must carefully manage their limited budgets, which often do not cover their essential needs and living expenses. Łącki also highlighted that pensioners have collectively paid PLN 98 million in bank debts, PLN 15 million for telecommunications services, and almost PLN 5 million for housing rent over the past year. However, outstanding electricity bills have increased by PLN 8.5 million during the same period.
A significant portion of pensioners’ debt, amounting to PLN 3.93 billion, has been taken over by securitization funds that purchased the liabilities from original creditors, primarily banks. Additionally, pensioners owe PLN 1.01 billion to state and local authorities, PLN 489.2 million to financial institutions such as banks, loan providers, and insurers, PLN 77.4 million in unpaid housing rent, PLN 61.4 million to telecommunications and internet providers, and PLN 34.4 million to energy suppliers.
Findings from the survey “Portfolios of Polish Households Under Pressure from Rising Prices,” conducted by KRD in the third quarter of 2024, reveal that older consumers are more likely than younger age groups to prioritize paying bills over discretionary spending when facing financial strain. The study shows that 61% of people aged 55-64 would reduce spending in other areas to cover their bills, while among those aged 65-74, the figure rises to 73%.
Jakub Kostecki, President of debt collection firm Kaczmarski Inkasso, observed that while many seniors worry about their debt, they often struggle to take a flexible approach to financial management. He noted that pensioners tend to experience significant anxiety over their ability to meet financial obligations. However, once they commit to an installment repayment plan, they exhibit remarkable discipline and consistency. Clearing their debts, according to Kostecki, provides a sense of relief and restores their financial dignity.
Data from KRD also indicates that women make up the majority of indebted pensioners, with 155,800 female debtors compared to 140,000 male debtors. However, men account for a larger share of the total debt, owing PLN 2.98 billion compared to PLN 2.67 billion owed by women. Male pensioners also carry a higher average debt, amounting to PLN 21,200 per person, while the average debt among female pensioners stands at PLN 17,100.
The reduction in total pensioner debt indicates progress, but the increase in individual debt levels underscores the ongoing financial pressures retirees face. As Poland’s aging population continues to navigate economic challenges, maintaining financial stability remains a key concern for both individuals and policymakers.
Source: KRD and ISBnews
