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RESEARCH PRODUCT

Employee Pension Plans as Retirement Saving Form

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The forecasts referring to the effectiveness of the system introduced by the law act in 1999 show that the retirement pensions paid in the future from the obligatory part of the system will be low and they will significantly decrease the life level of the pensioners. The forecasted low level of the effectiveness of the new pension system leads to a bigger interest in solutions which can partially reduce the poverty level of the future pensioners. This article is devoted to a new pension saving form, that is Employee Pension Plans (EPP). The goal of this paper is the attempt to answer the question whether the proposed form of saving can have a crucial influence on the pension amount of an average Polish citizen. The simulations of the potential pension benefits gained thanks to the suggested form of collecting capital will be analyzed in this article. Methodology: elaboration of the simulations and forecasts of the future pensions amount from the Employee Pension Plans by application of quantitative methods. Practical application: the presentation of forecasted effectiveness of EPP Social implications: improving the awareness of Polish society as far as Employee Pension Plans are concerned and their influence on the level of future retirement pension.