Český finanční a účetní časopis 2015(3):43-55 | DOI: 10.18267/j.cfuc.449

The Government-Subsidized Supplementary Retirement Savings Scheme: Determinants of Participation Rate and Contribution Size

Petr Janský
Petr Janský, Ph.D. - odborný asistent; Institut ekonomických studií, Fakulta sociálních věd, Univerzita Karlova v Praze, Opletalova 26, 111 21 Praha 1; výzkumník; CERGE-EI, společné pracoviště UK v Praze a NHÚ AV ČR, v. v. i.; <jansky.peta@gmail.com>.

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.

Keywords: Retirement savings; Supplementary retirement savings; Pension system.
JEL classification: H24, H55, J32, O16

Published: October 1, 2015  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Janský, P. (2015). The Government-Subsidized Supplementary Retirement Savings Scheme: Determinants of Participation Rate and Contribution Size. Czech Financial and Accounting Journal, 2015(3), 43-55. doi: 10.18267/j.cfuc.449
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Český statistický úřad (2011): Příjmy a životní podmínky domácností v roce 2010. Praha: Český statistický úřad.
    2. Dušek, L. - Kalíšková, K. - Münich, D. (2013): Distribution of Average, Marginal and Participation Tax Rates among Czech Taxpayers: Results from a TAXBEN Model. Finance a úvěr, 2013, roč. 63, č. 6, s. 474-504.
    3. Holub, M. (2009): Non-contributory Periods - a Significant Element of the Czech Pension Reform. Politická ekonomie, 2009, roč. 57, č. 4, s. 471-494. Go to original source...
    4. Huberman, G. - Iyengar, S. S. - Jiang, W. (2007): Defined Contribution Pension Plans: Determinants of Participation and Contributions Rates. Journal of Financial Services Research, 2007, roč. 31, č. 1, s. 1-32. Go to original source...
    5. MF ČR (2013): Základní ukazatele vývoje penzijního připojištění k 31. 12. 2012. [online], Praha, Ministerstvo financí ČR, c2013, [cit. 17. 7. 2013], <http://www.mfcr.cz/cs/soukromy-sektor/monitoring/vyvoj-penzijniho-pripojisteni/2013/zakladni-ukazatele-vyvoje-penzijniho-pri-12753>.
    6. Molek, J. - Molková, P. (2012): Analýza penzijního připojištění se státním příspěvkem: současnost a budoucnost. FÓRUM Sociální politiky, 2012, roč. 6, č. 1, s. 25-29.
    7. Munnell, A. H. - Sundén, A. - Taylor, C. (2001): What Determines 401 (K) Participation and Contributions. Social Security Bulletin, 2001, roč. 64, č. 3, s. 64-75.
    8. Schneider, O. (2011): Penzijní dluh: Břímě mladých. [online], Praha, Národohospodářský ústav AV ČR, c2011, [cit. 26. 3. 2015], <http://idea.cerge-ei.cz/documents/Studie_2011_02_Penze.pdf>.
    9. Schneider, O. - Šatava, J. (2012): Český důchodový systém na rozcestí: Pro koho je výhodný přechod do druhého pilíře? [online], Praha, Národohospodářský ústav AV ČR, c2012, [cit. 26. 3. 2015], <http://idea.cerge-ei.cz/documents/studie_2012_04.pdf>.
    10. Sivák, R. - Ochotnický, P. - Čambalová, A. (2011): Fiscal Sustainability of Pension Systems. Politická ekonomie, 2011, roč. 59, č. 6, s. 723-742. Go to original source...
    11. World Bank (1994): Averting the Old Age Crisis: Policies to Protect the Old and Promote Growth. [online], Washington, D. C., World Bank, c1994, [cit. 17. 4. 2013], <http://ina.bnu.edu.cn/docs/20140606091624951455.pdf>.

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content