Demographic aging of Polish society and its effects from the point of view of pension finance

Purpose - The aim of the study was to assess the effects of introducing the formula of defined contribution, as analyzed from the perspective of pension adequacy in Poland.Methodology - The main research methods employed included literature studies, theoretical considerations, and an empirical analysis of statistical data.Findings - The Polish pension system may be closer to balancing, but at the expense of lowering the replacement rate, which under the current conditions may even fall below the poverty threshold. Extending the universal retirement age may partly improve the financial situation of future pensioners, especially women.Originality/Value - In conclusion, it was observed that the legislators’ excessive preoccupation with maintaining long-term financial sustainability is not conducive to the achievement of other important goals of the pension system, such as ensuring the adequacy of pensions and preventing elderly people from falling into poverty. In light of the above, further reforms may still be required.