Myopic Savings Behaviour of Future Polish Pensioners

Buchholtz, Sonia; Gaska, Jan; Góra, Marek

doi:10.3390/risks9020036

Cited by 8 publications

(3 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The latest study on a sample of Polish citizens concerned the relationship between financial literacy and the savings behavior. Buchholtz et al (2021) on a representative sample of 1006 Poles confirm that savings are concentrated in wealthier and better educated groups.…”

Section: Introductionmentioning

confidence: 85%

Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Kurowski

2021

Risks

View full text Add to dashboard Cite

The COVID-19 pandemic has shown how important it is to prepare one’s own financial budget for the unexpected loss of income. In this dimension, the financial education of the society plays an invaluable role. It allows us to account for events that may adversely affect personal finances in our budget management decisions. Therefore, the aim of the article is to check whether households with a higher level of financial and debt literacy have better management skills from the perspective of a household’s budget, which in the face of a crisis reduces the risk of individuals not paying their liabilities. Thus, at the turn of June and July 2020, we conducted surveys among 1300 Polish citizens. Using the multinomial logistic regression, we show that people with a higher financial and debt literacy are less affected by overindebtedness. During the crisis, people who have a higher debt literacy are better prepared to manage credit liabilities; in this situation, financial literacy is less important. In addition, the type of credit experience turned out to be significant. Respondents who have experience with consumer loans (potentially high-margin products) are more likely to have debt repayment problems than those with mortgage loans experiences.

show abstract

Section: Introductionmentioning

confidence: 85%

Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Kurowski

2021

Risks

View full text Add to dashboard Cite

show abstract

“…The development of supplementary pension plans depends on many factors, the most common of which in the literature are as follows: the level of benefits from public schemes, the income of the household, financial literacy and retirement awareness (evidence for Poland: see e.g. : Kolasa and Liberda, 2014;Pieńkowska-Kamieniecka, Walczak and Bera, 2019;Solarz, 2020;Buchholtz, Gąska and Góra, 2021). Employer involvement in building retirement savings also matters to employees (Pieńkowska-Kamieniecka, Rutecka-Góra, Kowalczyk-Rołczyńska and Hadryan, 2021).…”

Section: Theoretical Framework Of the Researchmentioning

confidence: 99%

Employee Capital Plans performance through the lens of the participant — how to (better) measure and inform about the returns

Barembruch

Bielawska

2023

ekon

View full text Add to dashboard Cite

In recent decades, an increased effort to increase private retirement savings can be observed, especially in countries where public pensions have been the main source of livelihood during retirement. To increase participation in occupational as well as individual pension plans, states often use financial incentives (personal income tax reductions, preferential tax rates, subsidies). However, experience from studies in various countries shows that these incentives may not be efficient and/or attract mainly high earners. Mobilizing Poles to save for retirement in light of the paradigm shift in pension security in Poland caused by the 1999 reform has proven to be a major challenge. Given the mediocre development of the private pension plan market, a new type of workplace pension plans based on automatic enrollment called Employee Capital Plans (ECP) began to be implemented in 2019. However, despite the plan’s favorable funding mechanism, especially from the perspective of low- and middle-income earners, participation remains low. In the article, we argue that a change in the manner in which program participants are being reported their earned rates of return could increase interest in ECP participation. Following the investment performance of 60 FZDs, operating within the framework of ECP in Poland, we show that the total returns presented by the managers of FZDs and Polish FSA are lower than the returns measured from the perspective of participant contributions using the IRR method. Significantly higher results are also achieved by those with low earnings, who can make reduced contributions to ECP. Thus, we recommend the introduction of a standard for the presentation of ECP investment results from the participant’s point of view, taking into account the ECP financing mechanism.

show abstract

“…Typically these phenomena are interlocking. Low effective retirement age driven by all of the abovementioned factors can be found for instance in Poland (Buchholtz et al, 2021;Chłoń-Domińczak et al, 2020, Buchholtz, 2019Chybalski, 2018), which shows that solving this problem may be a complex process. Its coexistence with late entry to the labour market and increasing life expectancy further raises its priority status.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Framing and Anchoring on Postponing Labour Market Exit – Evidence from Polish NDC+FDC Pension Scheme

Buchholtz¹,

Rutecka-Góra²

2021

ERSJ

Self Cite

View full text Add to dashboard Cite

Purpose:The article examines whether the level of effective retirement age can be shifted upwards by increasing awareness of the consequences of premature retirement. Design/Methodology/Approach: The study uses multinomial logistic regression on the representative survey data for Polish working population. Special interest is given to the questionnaire with framing and anchoring effects included. Findings: The findings reveal strong retirement preferences of a minimum retirement age being the reference point and the natural anchor. However, these might change once framing is provided. Pension awareness is a significant predictor of postponing retirement. There can be distinguished a segment of working population with extremely low pension literacy. Practical Implications: Increasing effective retirement age is among most important factors reducing labour supply deficits and improving long-term sustainability of public finance. Special interest should be given to rational individuals with wrong assumptions on the mechanics of the pension scheme and individuals with extremely low pension knowledge in order to avoid severe old-age poverty. Originality/value: The study confirms that use of framing in increasing financial literacy leads to significant postponement of the labour market exit declared. Furthermore, there is a segment of the Polish working population with extremely low pension knowledge which should be educated.

show abstract

Myopic Savings Behaviour of Future Polish Pensioners

Cited by 8 publications

References 47 publications

Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Employee Capital Plans performance through the lens of the participant — how to (better) measure and inform about the returns

The Impact of Framing and Anchoring on Postponing Labour Market Exit – Evidence from Polish NDC+FDC Pension Scheme

Contact Info

Product

Resources

About