IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxivy2021ispecial1p975-988.html
   My bibliography  Save this article

Influence of Pillar 3 of Pension System on Retirement Pensions Level in Poland: Will Voluntary Part of System Enable Decent Life in Old Age?

Author

Listed:
  • Bartosz Chorkowy
  • Agnieszka Bobrowska

Abstract

Purpose: The aim of this paper is the comparative analysis of the general saving ways included in pillar 3 of the pension system and showing their potential effectiveness from the perspective of the pension system participant. Will the resources allocated by the instruments of the voluntary pension system part significantly improve the level of the future pension? Will they allow a more decent life for an average Polish citizen in the period of the old age? Approach/Methodology/Design: The unfavorable demographic situation in Poland causes that we should look with bigger and bigger fear at Polish pension system efficiency. Considering these demographic processes, at the same time we can unambiguously state that the level of a retirement pension will decrease for the significant part of the Polish in the perspective of the coming several dozens of years. Currently the replacement rate, that is the rate of the last pre-retirement earnings to the first retirement pension, equals about 50%. In coming years, it is predicted that the rate will drop to about 20-30%. Due to the decreasing level of benefits from the basic part of the pension system, saving in the supplementary system part, initiated by the employer or a future pensioner, is an effective way to ensure a higher living standard after retirement. Research methodology is the elaboration of a simulation and forecasts of the future level of benefits from PPK, PPE, IKE and IKZE applying the quantitative methods. Findings: This paper presents the basic elements of the demographic situation in Poland as one of the major reasons of the pension system ineffectiveness, besides the analysis of pillar 3 products that is, the Employee Capital Plans (PPK), Employee Pension Schemes (PPE), Individual Retirement Account (IKE), Individual Retirement Protection Account (IKZE). Practical Implications: The presentation of forecasted effectiveness of pillar 3 pension products for decision making. The improvement of Polish society awareness of pillar 3 and its influence on the future pension benefits level.

Suggested Citation

  • Bartosz Chorkowy & Agnieszka Bobrowska, 2021. "Influence of Pillar 3 of Pension System on Retirement Pensions Level in Poland: Will Voluntary Part of System Enable Decent Life in Old Age?," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 975-988.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:special1:p:975-988
    as

    Download full text from publisher

    File URL: https://ersj.eu/journal/2083/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mirela Cristea & Eleftherios Thalassinos, 2016. "Private Pension Plans: An Important Component of the Financial Market," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 110-115.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mustafa Raza Rabbani & Shahnawaz Khan & Eleftherios I. Thalassinos, 2020. "FinTech, Blockchain and Islamic Finance: An Extensive Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 65-86.
    2. Nikolay Tikhomirov & Tatiana Tikhomirova & Eldar Khamitov & Vladimir Ponomarev, 2017. "Models of Assessment of the Influnce of Insurance Assets Securitization on Stability of Mutual Insurance Societies," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 321-333.
    3. Giuliana Campanelli Andreopoulos & John Malindretos & Alexandros Panayides & Alfred Verrios, 2023. "A Complex Relationship Price / Quality: The Case of the US Health Care System," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 238-254.
    4. D. Lamasharipov, 2018. "Risk Management and Prospects for the Transition of Penitentiary System: The Case of Kazakhstan," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 488-495.
    5. Nivorozhkina L.I. & Abazieva K.G. & Dolbina S.V., 2019. "Impact of Contemporary Pension Reforms on Households’ Welfare," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 258-269.
    6. Halil Kukaj & Fisnik Morina & Valdrin Misiri, 2020. "Profitability Analysis of Banks: Comparative Study of Domestic and Foreign Banks in Kosovo," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 87-99.
    7. Małgorzata Szczepaniak & Agnieszka Szulc-Obloza, 2021. "Associations Between Job Satisfaction and Employment Protection in Selected European Union Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 542-554.
    8. A.U. Albekov & T.F. Romanova & O.V. Andreeva & A.A. Sukhoveeva, 2018. "Current State, Problems and Priority Areas of Social Policy in Contemporary Russia," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 3-10.
    9. Dragoș Alexandru HAȘEGAN, 2019. "An analyses model of the Romanian privately managed pension system," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(621), W), pages 139-148, Winter.
    10. Nerovnya Yu.V. & Romanov D.G. & Shirshov V.Yu., 2018. "Development Trends for the Insurance Industry in Russia," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 474-484.
    11. repec:agr:journl:v:4(621):y:2019:i:4(621):p:139-148 is not listed on IDEAS
    12. Katarzyna Hampel & Paulina Ucieklak-Jez & Agnieszka Bem & Przemyslaw Ruta & Pawel Predkiewicz & Kamila Urbanska, 2023. "Revolutionizing Healthcare: The Crucial Impact of Relational Marketing Strategies," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 78-96.
    13. Katarzyna Skrzeszewska, 2020. "Employees of the Global Labor Market and the Polish Social Security System," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 363-376.
    14. Petrovskaya N.E. & Kutsegreeva L.V. & Maksaev A.A. & Raevich I.A., 2019. "Socio-economic Consequences and Prospective Opportunities of the International Labour Migration as a Process of the Global Labour Market Development," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 203-210.
    15. I.P. Denisova & K.N. Samoylova & V.Y. Shirshov & M.Z. Myzaev, 2019. "The Digitalization Features of the Russian Social Media Market Insurance Service," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 167-175.
    16. Andrei V. Vlasov, 2017. "Pension System as a Demographic Recession Factor," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 443-452.
    17. S.S. Galazova & T.F. Romanova & M.O. Otrishko & A.L. Malyuga, 2018. "Development of Health Care Financial Provision System: Experience in the Russian Federation and in Other Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 53-62.
    18. Zinaida Petrovna Zamaraeva & Konstantin Anatolievich Antipyev & Stanislav Ivanovich Reutov & Galina Aleksandrovna Telegina & Valeria Andreevna Ledentsova & Ksenia Andreevna Voronova, 2018. "The Basic Concept of the Resource-Potential Approach in Social Security in Russia and International Experience," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 417-433.
    19. Marzanna Lament & Sławomir Bukowski, 2021. "Business Model Impact on the Financial Efficiency of Insurance Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 4), pages 237-247.
    20. Sahlian Daniela Nicoleta & Trasca Daniela Livia & Munteanu Irina Denisa & Matac Liviu & Pavel Daniela Codruta, 2020. "Study regarding the return of retirement pension plans and programs in Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 246-255, July.
    21. Ishay Wolf & Lorena Caridad Lopez del Rio, 2021. "Benefit Adequacy in Funded Pension Systems: Micro-Simulation of the Israeli Pension Scheme," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 143-164.

    More about this item

    Keywords

    Pension system; savings; pillar 3; aging of the society.;
    All these keywords.

    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxiv:y:2021:i:special1:p:975-988. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.