“Whoever does not postpone it has harmed himself.” Participation in PPK pays off

The employee capital plans came into force in 2019. The decision to phase in the program initially included larger companies, then increasingly smaller entities and public institutions. The situation has been complicated by the coronavirus pandemic, which has forced companies to struggle to survive and save jobscausing the PPKs to fall into the background – reminiscent of the “Rzeczpospolita”.

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– Only 51 percent of the funds accumulated in PPK come from participant contributions. The rest are subsidies from employers (nearly PLN 10 billion) and the state (PLN 2.5 billion). In addition, these profits include investment results achieved by financial institutions for program participants – said Bartosz Marczok, Vice President of PFR, in an interview with “Rzeczpospolita”.

PFR forecasts indicate this Accumulated assets in PPK and personal protective equipment should exceed PLN 100-120 billion this decade. By the end of the decade, 6 to 7 million employees are expected to be involved in PPK and PPE.

– PPK is a very attractive product. For every zloty saved by the employee, the employer and the state add another zloty – emphasizes Marczok in an interview with “Rz”. This was echoed by Marlena Jannotta, member of the Board of Directors of Santander TFI, who believes that PPK is the best investment product on the market – we read in the daily newspapers.

According to experts Changes in demographics and the aging population will challenge the pension system. Expectations indicate that in 2060, the ratio of the pension to the last salary before switching to it will decrease from the current more than 50 percent to only about 25 percent (replacement ratio), according to what was reported by “RZ”.

– We are living longer and healthier – notes Gertruda Ossinska, former President of ZUS. Hence the necessity of additional saving for retirement.

The value of net assets in employee capital plans exceeded PLN 25 billion, and the number of accounts – 4.08 million. An employee who has been paying contributions for more than 12 months without making any withdrawals, He has collected an average of PLN 12,607.23 in his PPK account, of which only PLN 5,298.32 comes from his own contributions.

Employee equity plans are a program in which the employer and state contribute to the employee's private savings. From the state, a PPK participant may receive a welcome payment (PLN 250 to start) and annual subsidies (PLN 240 for a given calendar year). These amounts are fixed and are the same for all PPK participants who have earned the right to them.