Small firms take-up of new pension scheme may be lower: expert

Take-up of the new contributory pensions scheme by large firms “will be lower than estimates at 35 percent” but the response in small firms ‘will be much lower” Marcin Wojewódka of Instytut Emerytalny told PolandIN.

A report published recently by Instytut Emerytalny had estimated uptake of the new contributory pension scheme, known as PPK at around 40 percent. However, Mr Wojewódka, its author told PolandIN that the early official estimates are nearer to 35 percent.

Moreover, the pensions expert, who is a former board member of the Polish Social Insurance Institution (ZUS), said that he expects the uptake among smaller firms to be even lower, because such firms will not be able to rely on the help of an internal HR apparatus in order to popularise the scheme.

The low take-up contrasts to the original expectations when the scheme was drafted that 75 percent of eligible employees would agree to participate.

Mr Wojewódka said that the current social security pension that people of his age are paying into will not guarantee a high pension. Two weeks ago, one of the authors of the scheme new retirement savings scheme, Bartek Marczuk of the Polish Investment Fund, said that the average expected state pension in 20 years will be just under EUR 300.

Click here to watch the full interview.