British Financial System – encouraging for European citizens

Have you ever wondered why our country, in particular, is very popular destination for the European immigrations? Undoubtedly, improvement of people financial position and quality of their lives are the most important driver, but what is the most attractive for immigrants, especially for Polish people? Let us start with the short overview of our Pension System.

Pension is themoney regularly paid by the government after we achieve our State Pension age – the earliest age we can claim our State pension. It has been changed and now it is 68 years for both men and women born between 2010 and 2018. It means that at this age you do not have to stop working and become a pensioner, but of course you have a right to do this, and your National Insurance contributions are not paid anymore then. You are entitled to be paid pension if you worked for at least 30 years and therefore along with income taxes on behalf of you, your boss paid National Insurance contributions. This is one of the most important reasons, why we always should look for a job which guarantees employment. Since the new regulations came into force, all those who have been retired after April 6 will receive weekly payment of £155.65 (£8,094 a year). Unfortunately, it might be not enough. According to Review’s research, people on retirement spend around £24,000 per year. Do you think that British pensions are really low? For you probably they are, and most of us are dissatisfied with them, but maybe we should compare our State Pension system with the system of home-state of a numerous immigrants who have come to the UK, for example, Poland.

First of all, Polish pensions are different, but they are also paid in their income taxes. The moment Polish people can receive their pensions depend on the State Pension age which is now 67 years for both men and women. In order to be paid pensions, men needs to work for at least 25 years, and women 22,  but after 2018 it will be 23 years, after 2020 24 years and after 2022 25 years. Worked years are understood as a period during which there were regularly paid benefits’ contributions including pensions. Although these periods are not ‘so really long but the minimum guaranteed pension is only PLN 880 gross, currently about £146 but per month! What is more, the prices of daily purchased products are also similar to the British.The reason of being paid low pensions is that a lot of people in Poland worked illegally. The taxes paid for each employee are so high that not everyone works based on employment contract or even on any contract at all. In addition, the low minimum wage of salary is the other reason why Polish people are not satisfied with their Financial System. In order to earn more, and save some money, they sometimes work based on so-called “junk agreements”, or even illegally, consequently, they are not insured and do not pay taxes. All of these contribute to the fact that Polish people emigrate and arrive to the UK. For them our tax system, pensions, benefits, salaries are really high and worth working guts out.