Complexity in choice of investment decisions

Abstract

The Fundamental questions in all pension systems concern the choices made by individual. The most important issues are: whether and to what extent individuals should determine the choice of pension products provided; whether and to what extent individuals should determine the choice of investment portfolios; whether and to what extent individuals should determine the choice of stream of income in retirement. Consideration in this text focuses on individual retirement decisions that are made in the phase of capital accumulation. The subject of inquiry is questions about the causes: the reasons for the low interest of savings in the third pillar of pension provision in Poland; the causes in variation of savers determined by gender and age; the reasons for determining the allocation of assets within the Individual Retirement Account PZU (insurance company). For this purpose, the described facts are explained by referring to the reliable knowledge of behavioral economics. The author made the analysis of basic legal regulations governing the operation of individual retirement accounts, and individual retirement savings account, as well as the analysis of basic statistics describing the market. Attention is paid to the key growth barriers of the third pillar of pension provisions in Poland and savers investment behavior within the individual retirement accounts. The text concludes proposals aimed at encouraging the development of voluntary forms of pension provision in Poland.