On January 19 a debate organised by the Association of Polish Economists entitled “Additional pension system in Poland – an assessment and recommendations for change” was held at the Presidential Palace.
Mr Maciej Bitner, the head economist of the Warsaw Institute for Economic Studies, stated that the proposals advanced by the Association are a noteworthy attempt to face the threat that is the impending decrease of replacement rates.
– I actually appreciate some of those proposals, such as the proposal to have the state make additional payments to the account of every person who has made regular savings for his or her pension for a period of 5 years. This solution may promote long-term planning, Mr Bitner stated.
However, in general I believe that there has been little reflection on other obstacles on the path to long-term savings which are of a more fundamental nature than the absence of state subsidies. These include, first and foremost: the lack of understanding and trust with respect to savings products as well as the reluctance to accept long-term burdens. Under these conditions, voluntary saving schemes will always apply to the 5-15% of the most affluent citizens. To have the rest of society subsidise this group appears to me to be highly inappropriate and in this regard I concur with the authors of the report – Mr Bitner concluded. An alternative to this approach is a quasi-voluntary system applicable to virtually all employed individuals, i.e. the third variant. This, however, contrary to the intentions of the authors of the report, would merely constitute an extension of the Open Pension Fund system – one that the government (with the active support of the opposition and the silent acquiescence of the President) is now retreating from, arguing that the stock exchange is a gamble – a risk which nobody may be forced to take. This brings the question: who would back this idea? – Mr Bitner asked rhetorically.
