Long-term savings of the population: an opportunity for both the country’s economy and individual households

Economic Annals-ХХI: Volume 163, Issue 1-2, Pages: 52-55

Citation information:
Wierzbicka, E. (2017). Long-term savings of the population: an opportunity for both the country’s economy and individual households. Economic Annals-XXI, 163(1-2), 52-55. doi: https://doi.org/10.21003/ea.V163-11

Ewa Wierzbicka
PhD (Economics),
Adjunct Professor,
Institute of Value Management,
Warsaw School of Economics
162 Niepodleglosci Ave., Warszaw, 02-554, Poland
ewierz1@sgh.waw.pl

Long-term savings of the population: an opportunity for both the country’s economy and individual households

Abstract. There are various economic, social and psychological conditions, as well as goals and motives, which affect household saving rates. Savings made by household members belong to personal finance studies which are relevant to an area of economics related to the management of financial resources. The purpose of this article is to show the importance of saving not only at the micro level but also at the level of the whole economy. Savings represent an internal source of the national financial capital. The greater propensity to save, the more financial resources can be invested into the economy. In this article, by using Poland as an example, the author emphasises the special importance of long-term savings for the national economy and the country’s economic security, which stabilises the financial system and may reduce the share of foreign investors in public debt. The focus is also on the key determinants that affect the scale and structure of households’ savings in Poland at the medium level of development. This article aims to identify the factors determining the level of household savings, as well as their structure, and to highlight the importance of long-term savings for the economy by using Poland as an example. These factors include an increase in the level of individual income, a strive to diversify the structure of cash resources of individual households, and improvement of the level of economic security of families, especially with regard to the issues of protecting their income at retirement age.

Keywords: Savings; Households; Saving Motives; Long-Term Savings; Investment Fund; Retirement Account; Poland

JEL Classification: E21; G11; G22

DOI: https://doi.org/10.21003/ea.V163-11

References

1. PKO Bank Polski (2015, March 12). Special Report.
   Retrieved from http://www.pkobp.pl/media_files/d1a278a2-562c-4ff2-b5cf-35f776d0639e.pdf (in Polish)
2. Banbula, P. (2006). Savings and Intertemporal Choice – Behavioral Approach, Publishing House of Polish Central Bank NBP, Department of Social Communication, Warsaw (in Polish).
3. Wierzbicka, E. (2015). Trust as a condition of long-term saving for retirement goals, Insurance Trial, 18, 80-89.
   Retrieved from http://rf.gov.pl/pdf/zeszyt18_net.pdf (in Polish)
4. Czapinski, J., & Panek, T. (Eds.). (2015). Social Diagnosis 2015. Objective and Subjective Quality of Life in Poland. Quarterly of University of Finance and Management in Warsaw, 9(4). Warsaw: Rada Monitoringu Spolecznego.
   Retrieved from http://www.diagnoza.com/data/report/report_2015.pdf (in Polish)
5. Rytelewska, G., & Klopocka, A. (2010). The impact of demographic factors on the level and structure of household savings. Bank and Credit, 41(1), 57-80.
   Retrieved from http://bankikredyt.nbp.pl/content/2010/01/bik_01_2010_03_art.pdf (in Polish)
6. European Financial Congress (2013-2017). Analisys.
   Retrieved from http://www.efcongress.com/pl/materialy/analizy
7. Majka, K. (2016). Saving and working people get rich. Bank, 5.
   Retrieved from https://alebank.pl/bank-i-klient/?id=58025&catid=947 (in Polish)
8. Orlik, T. (2016). Investment funds participation in households savings in Poland in 2006-2016 – review from the perspective of supplementary pension. Insurance News, 2, 35-55.
   Retrieved from https://piu.org.pl/public/upload/ibrowser/WU/WU%202%202016/WU%202016-02%2003%20Orlik.pdf (in Polish)
9. Analisys Online (2016, June 30). Structure of households’ savings (March 2016).
   Retrieved from https://www.analizy.pl/fundusze/wiadomosci/20439/struktura-oszczednosci-gospodarstw-domowych-%28marzec-2016%29.html (in Polish)
10. KNF-Polish Financial Supervision Authority (2014, March 31). Recommendation U.
    Retrieved from https://www.knf.gov.pl/Images/Rekomendacja_U_tcm75-38338.pdf (in Polish)
11. Sejm of the Republic of Poland (2015, August 5). The Act of 5 August 2015 on the Handling of Complaints by Financial Market Participants and on the Financial Ombudsman poz. 1348.
    Retrieved from http://isap.sejm.gov.pl/DetailsServlet?id=WDU20150001348 (in Polish)
12. Czapinski, J., & Panek, T. (Eds.). (2014). Social Diagnosis 2013. Poles’ living conditions and quality of life. Warsaw: Ministry of Family, Labour and Social Policy and Centre of Human Resource Development.
    Retrieved from http://analizy.mpips.gov.pl/images/stories/publ_i_raporty/DS2013/
    Raport_glowny_Diagnoza_Spoleczna_2013.pdf (in Polish)
13. Kronenberg Foundation at Citi Handlowy Bank, Think! Foundation (2016, September). Survey of attitudes of Poles towards Finance.
    Retrieved from http://www.citibank.pl/poland/kronenberg/polish/files/
    postawy_polakow_wobec_finansow_wrzesien_2016.pdf (in Polish)
14. KNF-Polish Financial Supervision Authority (2016). The Pension Funds Sector in Poland – Evolution, Forms, Prospects. Warsaw: Polish Financial Supervision Authority Board.
    Retrieved from https://www.knf.gov.pl/Images/Sektor_funduszy_emerytalnych_w_Polsce_2016_tcm75-47307.pdf (in Polish)

Received 5.11.2016