Saving Not the Answer?

Say 'No' to Piggy Banks?

Say ‘No’ to Piggy Banks?

Journalist Grzegorz Siemiończyk in a recent article writes that the head of the Polish Financial Supervision Authority (KNF) wants to boost the Polish economy by encouraging society to start saving more money. According to Andrzej Jakubiak, chairman of KNF, Poles would put money away for a rainy day more eagerly if they were able to get a loan more easily. Jakubiak’s idea is to transfer money from voluntary pensions and treat it as one’s own contribution to a mortgage. According to the journalist, it is a preposterous idea which would only help developers and banks, but not Polish people themselves. What is more, this would not guarantee people have savings. Siemiończyk believes that it is more probable that Warsaw real estate become increasingly more affordable. Also, mortgage debts may increase over the years, especially if taken in a foreign currency, as is often the case. Finally, the author believes that the money currently in retirement accounts is being utilised by the government for financing business and economic development. In that case, why does the chairman of the KNF endorse such an idea? One might only wonder.

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