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The Government-Subsidized Supplementary Retirement Savings Scheme: Determinants of Participation Rate and Contribution Size
[Penzijní připojištění: kteří občané se jej účastní nejvíce a platí nejvyšší příspěvky?]

Author

Listed:
  • Petr Janský

Abstract

The article identifies characteristics of Czech individuals, which influence participation rate and contribution size in the government-subsidized supplementary retirement savings scheme, the 3rd pillar of the pension system. Using the representative sample of individuals, I show that men are by 8 percentage points more likely to participate in the 3rd pillar than women, but their average contributions are of similar size. Higher participation rates as well as contributions exhibit employees with higher incomes, older people and those working longer hours. More than a third (36%) of participants contributed 500 Czech crowns monthly to the 3rd pillar, which was identical with a ceiling, valid until the end of 2012, for a government subsidy of 0.3 crowns per each crown contributed. These results suggest that a large share of population has a larger propensity for long-term saving than they actually save.

Suggested Citation

  • Petr Janský, 2015. "The Government-Subsidized Supplementary Retirement Savings Scheme: Determinants of Participation Rate and Contribution Size [Penzijní připojištění: kteří občané se jej účastní nejvíce a platí nejvy," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2015(3), pages 43-55.
    • Handle: RePEc:prg:jnlcfu:v:2015:y:2015:i:3:id:449:p:43-55
    DOI: 10.18267/j.cfuc.449
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    References listed on IDEAS

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    1. Martin Holub, 2009. "Nepříspěvkové doby pojištění - významný prvek české důchodové reformy [Non-contributory periods - a significant element of the czech pension reform]," Politická ekonomie, Prague University of Economics and Business, vol. 2009(4), pages 471-494.
    2. Rudolf Sivák & Pavol Ochotnický & Andrea Čambalová, 2011. "Fiškálna udržateľnosť penzijných systémov [Fiscal Sustainability of Pension Systems]," Politická ekonomie, Prague University of Economics and Business, vol. 2011(6), pages 723-742.
    3. Gur Huberman & Sheena Iyengar & Wei Jiang, 2007. "Defined Contribution Pension Plans: Determinants of Participation and Contributions Rates," Journal of Financial Services Research, Springer;Western Finance Association, vol. 31(1), pages 1-32, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Retirement savings; Supplementary retirement savings; Pension system; Důchodové spoření; Penzijní připojištění; Důchodový systém;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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