As with pensions, the amount of the pension depends, among other things, on the length of insurance period. It is difficult to expect from young people that at the age of 25 they will have contributory and non-contributory periods sufficient to receive a benefit that could be considered a real source of income. Therefore, the second factor determining the amount of the benefit is the base amount, i.e. the value provided by the state to each pensioner. What do the proportions of these components look like? Information on this subject can be found, among others, in the Act on pensions from the Social Insurance Fund ( Journal of Laws of 2017, item 1383, as amended).
The pension consists of 24% of the base amount , 1.3% of the calculation basis for each year of contributory periods , 0.7% of the calculation basis for each year of non-contributory periods . For people over 60 years of age, 0.7% of the base amount is also included for each year which is missing to achieve the required full years of 25 years of contributory and non-contributory periods.
What is the amount of my pension? Practice
This is the situation of pensioners in theory, but what does it mean in practice? How high are the benefits? The base amount is determined by the Central Statistical Office of Poland’s average salary for the previous year. It is worth noting that the value after deduction of contributions is taken into account. Thus, the one in force from March 1, 2019 is USD 4 003.88. An upward trend is visible, because until February 28, 2019 it was almost USD 300 less.
Disability loans via the internet
Looking at these amounts, it should not surprise us that many pensioners reach for financial support from banks or loan companies. Perhaps this year the situation will change for the better thanks to the introduction of the 13th pension. However, this is a one-time bonus that many people will put aside to buy coal for the winter or so-called “Rainy day” when there are unplanned expenses. According to the data of the Credit Information Bureau for 2018, people over 65 are increasingly reaching for credit products.
As many as 59.02 thous. retirees and pensioners from this age group have non-bank loans and their average debt is USD 10,614. As you can see, higher amounts of financial support are more popular. It is worth noting here that this trend applies not only to older people, but also to young people. You can also see among the seniors the phenomenon of taking out both loans and loans for pensioners over the internet for their children or grandchildren.
Do lenders accept pensions as the main source of income?
As we have already mentioned above, there are both seniors and young people among people receiving disability benefits. We have no influence on some situations and cannot predict what will happen to us in life. Therefore, so that everyone has a chance to find the right offer, we divide the analysis of loan companies into those that take into account high upper age limits and those intended for younger people. Let’s start with the general conditions for granting a loan. One of the main factors influencing the assessment of our creditworthiness is the source of income. It should correspond to the loan parameters chosen by us in such a way that its repayment is not a problem for us and the lender had no doubt that we would be able to cope with the commitment.
Very often there are situations when people living on a pension mainly are rejected by banks. However, you cannot break down, because there are also other financial institutions on the Polish market, such as loan companies. In non-bank offers, we will meet less demanding criteria for applicants. Thanks to them, both seniors and young people living mainly on disability benefits have a chance for financial support. So if you’re wondering if lenders accept pensions as their main source of income, the answer is yes. However, remember about the reasonable choice of loan parameters. We should be guided primarily by the principle: Measure strength on intentions!
Long – or short-term cash loans to pensioners?
Before reviewing the available offers, we should also decide whether we want to apply for payday loans or maybe long-term loans would be better. We need to know that these two products differ in basic issues. Below is a summary that may help you choose the right financial support. The rule is one. If we have doubts whether within a month or two we will accumulate the funds needed to repay the loan, we should choose a long-term product that includes installment repayments.
Annuity loan – how do you find the right offer?
The market of loan companies abounds in more and more new companies that guarantee their potential clients that they will not find a better offer anywhere. However, is it possible for every lender to be the best? In fact, what product we consider to be the most attractive depends on the individual financial situation. Therefore, before starting the search, we should analyze our home budget. What does it mean? Let’s compare our monthly expenses and revenues, and then determine the amount of the missing amount and funds that we can allocate to repay the commitment each month. If we already get this information, let’s move on to the stage of proper search for loans for pensioners on the Internet.
To this end, it is worth using loan comparison websites, such as our platform, because they accumulate many noteworthy offers in one place. Thanks to this, we don’t have to spend time looking at each lender’s website separately. All you need to do is specify the amount you need and the loan period you are interested in, and you will receive a list of products along with potential costs and installments. Then, you might also want to look at the loan feedback page for specific terms. This will be important especially for seniors, because not every lender will accept an application from a person over 64 years of age. You can also find a list of such companies below.