Ready, set, save: The role of salary increases in shaping readiness for voluntary retirement savings
Ready, set, save: The role of salary increases in shaping readiness for voluntary retirement savings

Summary/Abstract: The increasing life expectancy and progressively aging populations present substantial challenges for pension systems worldwide. In Poland, while it is increasingly recognized that pensions from the mandatory system will be drastically low, participation in voluntary savings remains insufficient. As a result, the role of voluntary savings is gaining importance; however, low income is often highlighted as the main barrier to engaging in such savings. This study investigates individuals' readiness to allocate a hypothetical 30% salary increase toward retirement savings and examines the behavioral and demographic determinants influencing this decision. A representative sample of 1,200 economically active Poles aged 18–65 was surveyed using the Computer-Assisted Web Interviewing (CAWI) method. Participants reported both their willingness to save and the specific percentage of the salary increase they would allocate to retirement savings. The findings indicate significant differences in readiness to save between individuals who already engage in voluntary savings and those who do not. Voluntary savers demonstrated both higher readiness levels and a greater allocation of additional income toward retirement goals. Key demographic factors, such as age and education, further influenced these behaviors.

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