Will they start making changes to PPK? “Ideas can end in disaster”

— Automatic enrollment is the key to the success of PPK. Just look at the 4-year achievements: saves over 45% in the program. eligible people, i.e. 3.37 million people who saved a total of PLN 20.22 billion. This could not have been achieved in such a short time without automatic saving. This is also proven by the fact that among people over 55 years of age who sign up voluntarily, the participation rate is 7 percent – argues Robert Zapotoczny, president of PFR Portal PPK and co-author of the PPK Act, in an interview with money.pl.

Automatic enrollment applies to a twin scheme that has been operating in the UK since 2008 – Workplace Pension. Thanks to this, participation there is 88%. However, after 48 years of the 401(k) program in the US, which is voluntary, participation is less than 50%.

— Building public trust in PPK takes time and patience. You can unsubscribe from PPK at any time. However, if there is a change in the regulations resulting in voluntary subscription, this will be the beginning of the end of this reform – warns a PFR representative.

Two other money.pl interlocutors spoke in a similar tone.

I am absolutely in favor of automatic enrollment in the PPK – both the one applicable at the time of employment of the employee and the cyclical one every four years. In my opinion, it should be every two years, because it is a good solution to increase participation – says Dr. Antoni Kolek, president of the Pension Institute.

— We know from not only Polish experience that automatic enrollment is the best possible solution that allows for increasing participation in PPK. Only in the next step, when the participant is convinced of the program, which he can resign from at any time, is it worth trying to encourage him to increase his contributions – adds investment advisor Andrzej Sołdek.

Piotr Kuczyński, an analyst at Xelion Investment House, has the opposite opinion. — I am not an enemy of this program, but I would arrange it differently. From the investment perspective, I rate PPK as a good one because it brings profits. I certainly wouldn’t invest money in small and medium-sized companies, because it may end badly. I wouldn’t call it retirement either if we save for 10 years. If it were a voluntary pension program – the saving period should be extended and people should not be forced to participate – I think participation would increase dramatically to 75-80%. – he says in an interview with money.pl.

At the same time, the analyst warns that if politicians’ new ideas raise the slightest doubts about the durability of this program, it will “end in disaster”, i.e. most people will opt out of PPK. If this happens, Kuczyński believes, the program will cease to be profitable.

Let us remind you that participants are enrolled in individual funds at the time of joining the PPK. Then, the deposits are invested according to a strictly defined investment strategy. Employees are automatically enrolled upon hire and every four years thereafter. Importantly, you can withdraw from the program by withdrawing the accumulated savings.

According to the president of IE, now is the right time to improve PPK. In his conversation with us, he supports changing the investment policy, but not radically. He indicates that it would be enough to invest more capital in shares of WSE companies and less in bonds. He adds that it is worth taking into account the needs of those who do not want to invest in companies harmful to the environment.

According to Kolek, educational and information campaigns should be intensified. Currently, better-paid employees save in PPK. People with low salaries rarely participate in a pension programso – our conversation says – it is worth considering what to do to encourage them.

How to do it? — For example, by exempting (program participants with the lowest earnings – editor’s note) from the obligatory payment (minimum 0.5% of remuneration). In the case of these people, the contribution would only be made by employers (minimum 1.5%). This would undoubtedly have a positive impact on the number of program participants, Kolek advises.

Karolina Wysota, journalist at money.pl