One simple choice can make your retirement payout higher

The amount of your pension depends not only on your length of service or contributions. The timing of your application is also important. Choosing the right month can bring real benefits.

For those planning to retire in 2025, July may be one of the most favorable months to retire. This is due to the pension contribution indexation mechanism. This period includes data from both the annual indexation for 2024 (114.41%) and the quarterly indexation for the first quarter of 2025 (111.60%).

According to information published by the Social Insurance Institution (ZUS), the right to a pension is granted to individuals who have reached the standard retirement age . This is 60 for women and 65 for men. Additionally, documentation of a period of social insurance coverage or payment of at least one pension contribution is required, for example, as a self-employed person.

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Importantly, length of service does not affect the eligibility for the benefit (though it does affect the pension amount). Meeting the above criteria is crucial. An application can be submitted no earlier than one month before reaching retirement age . The right to a pension is acquired on the date of reaching that age. The date of payment of the benefit depends on the date the application is submitted.

The amount of the pension is calculated taking into account the expected duration of its collection, the so-called average life expectancy , published annually by the Central Statistical Office.

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In practice, this means that the shorter the period, the higher the monthly benefit amount. Therefore, it may be beneficial to submit an application not immediately after reaching retirement age, but after your birthday . Even if this means postponing the decision by just a few days, this strategy can impact the final calculation result.

What about when to end your career? When the decision to retire comes after reaching the required age, it becomes especially important to plan your retirement accordingly.

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It's best to end your employment contract one or two days before the end of the month and submit your application to ZUS (along with your employment certificate) by then. If your contract expires on the last day and your application is submitted to ZUS the same day, your benefit payment will not begin until the following month.

People planning their retirement can use tools that help them make informed financial decisions. One such tool is the pension calculator available on the Electronic Services Platform (PUE ZUS). It allows them to calculate the projected benefit amount based on the current data stored in the insured person's account.