Only one-third of young people save for an additional pension

Financial challenges that adults under the age of 30 have to face mostly do not favor saving for an additional pension. Instead of putting money aside for their retirement, they are more focused on buying a house, a car, or providing education for their children. However, according to the Social Insurance Institution (ZUS), by 2060, the pension will not even reach one-quarter of their last salary. Convincing young people to participate in available pension systems is made difficult by the lack of trust in politicians and the takeover of assets accumulated in the Open Pension Funds (OFE). Nonetheless, education is necessary and possible, but it is a long-term process.

"Young adults under the age of 30 are incredibly optimistic about their future pensions because they significantly overestimate the amount they will receive from ZUS," Dr. Katarzyna Sekścińska from the Faculty of Psychology at the University of Warsaw, said.

"Research has shown that the vast majority of young people think they will receive more than they will get. Interestingly, three out of 10 young Poles believe they will receive at least as much as their last salary. So they are overestimating future pensions by four or five times compared to ZUS estimates," she added.

(Newseria)