Examination of the adequacy of the voluntary pension fund contribution payments of men with high school diploma as their highest educational attainment

Absztrakt

With the help of two self-developed calculation models and a selfdeveloped replacement rate, the author seeks an answer to whether the current average level of voluntary pension fund contribution payments can be sufficient so that there is no loss of net income upon retirement with the current pension determination rules for men sorted into three age groups with a high school diploma as their highest educational attainment. The calculations provide an estimate both with and without the full amount of the 13th monthly pension, of what percentage of the gross earnings would be needed to be regularly paid into the pension fund by joining at different ages, and what the actual contribution payment data shows in comparison. The article covers the proportion of those who do not pay any contribution, or pay only a small amount, as well as the average size of individual accounts’ balance of those who pay contribution and those who do not, and also formulates proposals for the measures it deems necessary in order to increase the number of pension fund members and the willingness to pay contributions.