Insurance Against Longevity Risk in a Pension System the Case Study of Poland
Marek Szczepański
Department of Economic Sciences, Poznan University of TechnologyAbstract
Life expectancy has been rapidly increasing and remains uncertain in all OECD countries, including Poland. One of the many economic and social consequences of this process is the increase of the longevity risk in social security systems. This article focuses on the issues of managing longevity risk in the pension system in Poland, in particular - the construction of public and supplementary pension systems and its ability to adapt to the challenges associated with longevity risk. Particular attention has been paid to the analysis of public structures and supplementary pension schemes in the phase of payment of benefits (decumulation). The research work, of which the results are presented in the article, is based on literature studies, comparative analysis, statistical analysis; as well as descriptive and explanatory methods. Also, a model of the two stages of pension risk created by T. Szumlicz has been used. The author argues that both the public pension systems as well as the supplementary pension schemes in Poland do not secure adequate protection against the risk of longevity. While in the public retirement system, the aggregate longevity risk exists, and the participants of additional pension systems are exposed to individual longevity risk. The limitation of these risks requires significant structural changes both in the public and in the additional pension schemes in Poland.
Keywords:
longevity risk, life expectancy, public and additional pension systemsReferences
Barr N., Diamond P. 2010. Pension reform. A Short Guide. Oxford University Press, Oxford.
Blake D. 2006. Pension Economics, Pension Institute. John Wiley Sons Ltd., Chichester.
Blake D., Burrows W. 2001. The Case of Longevity Bonds: Helping to hedge mortality risk. Journal of Risk and Insurance, 68(2): 339-348.
Góra M. 2003. System emerytalny. PWE, Warszawa.
Jarocińska E. 2014. The impact of living and working longer on pension incomes in Poland. In: The Impact of living and working longer on pension income in five European countries: Estonia, Finland, Hungary, the Netherlands and Poland. CASE Network Studies and Analysis, 476: 21-31.
Life Expectancy Tables Poland 2011. 2012. GUS, Warszawa
Life Expectancy Tables Poland 2014. 2015. GUS, Warszawa.
OECD Statistics. 2014. http://stats.oecd.org (access: 16.01.2014).
Otto W., Wisniewski M. 2013. Emerytury kapitałowe: mechanizm ekonomiczny. In: Współczesne zabezpieczenie emerytalne. Wybrane aspekty ekonomiczne, finansowe i demograficzne. Ed. F. Chybalski, E. Marcinkiewicz. Wydawnictwo Politechniki Łódzkiej, Łódź, p. 23-41.
Pitacco E., Denuit M., Haberman S., Olivieri A. 2009. Modelling Longevity Dynamics for Pensions and Annuity Business. Oxford University Press, New York.
Rejda G.E. 2001. Principles of Risk Management and Insurance. Addison Wesley-Longman, New York.
Rutecka J. 2014. Country case: Poland. In: Pension Savings: the Real Return. A Research Report by Better Finance for All. European Commission, Brussels, p. 130-151.
Rutecka J., Bielawska K., Petru R. Pieńkowska- Kamieniecka S., Szczepański M. Żukowski M. 2014. Dodatkowy system emerytalny w Polsce. Diagnoza i rekomendacje zmian. Towarzystwo Ekonomistów Polskich, Warszawa.
Society at a Glance 2011. 2011. OECD Societal Indicators.
Szczepański M. 2013. Bezpieczeństwo dzięki zrównoważeniu - wstępna ocena proponowanych zmian. In: Reformowanie systemów emerytalnych - porównania i oceny. Ed. M. Szczepański. Publishing House of Poznań University of Technology, Poznań, p. 147-175.
Szumlicz T. 2009. Ubezpieczenie społeczne. Teoria dla praktyki. Oficyna Wydawnicza Branta, Bydgoszcz-Warszawa.
Ustawa z 20 kwietnia 2004 r. o indywidualnych kontach emerytalnych oraz indywidualnych kontach zabezpieczenia emerytalnego. DzU z 2004 r., nr 116, poz. 1205.
Ustawa z 20 kwietnia 2004 r. o pracowniczych programach emerytalnych. DzU. z 2004 r., nr 116, poz. 1207.
Ustawa z 6 grudnia 2013 r. o zmianie niektórych ustaw w związku z określeniem zasad wypłaty emerytur ze środków zgromadzonych w otwartych funduszach emerytalnych. DzU z 2013 r., poz. 1717.
Vaughan E.J., Vaughan T.M. 2001. Essentials of Risk Management and Insurance. Wiley, New York.
Vaupel J.W. 2011. Longer and Longer Lives: Some Remarkable New Research Findings. Presentation at the Seventh International Longevity Risk and Capital Markets Solutions Conference, September 8-9, 2011. Pensions Institute, London.
Wypłata emerytur z II filara nowego system emerytalnego. 2004. Urząd Komisji Nadzoru Ubezpieczeń i Funduszy Emerytalnych, Warszawa.
Zelenko I. 2014. Longevity Risk and the Stability of Retirement Systems: The Chilean Longevity Bond Case. The Jurnal of Alternative Investment, Summer, p. 35-54.
Department of Economic Sciences, Poznan University of Technology
License
An Author declares that his paper has not been published before (under the same or another title, or is a part of another publication) and does not infringe copyrights of other persons**. At the same time, the Author transfers to the Publisher the exclusive right to publish and to circulate this work in print in the form of a non-serial journal publication and in a form of an electronic publication.
The journal is available on Creative Common license CC-BY-NC-ND
