Individual Pension Security Accounts
Indywidualne konto zabezpieczenia emerytalnego, IKZE
Coverage
Voluntary participation
- Persons residing in Poland with taxable income and of at least 16 years of age.
Financing
General finances
- Fully funded personal pension plans based on contribution payments and capital revenues.
Contribution payments
- Insured persons provide contribution payments and decide upon its amount individually (capped by maximum amount).
State support
- Tax-deductible contribution payments (up to a defined limit).
Administration
- Different finance institutions chosen by participant: general pension societies, investment fund companies, employee pension societies, insurance companies.
- The ‘Polish Financial Supervision Authority’ (Komisja Nadzoru Finansowego) regulates licenses, oversees and sanctions the pension schemes.
Qualifying Conditions
- Minimum age 65; minimum contributory period: 5 years.
Benefits
Pension payments
- Defined contribution, primarily based on the amount of contributory earnings, length of contributory period and capital revenues.
- Monthly annuity or one-time lump sum payment.
Taxation and social security contributions
- Payments are subject to lower income tax (flat 10%), if paid at age 65 or after.
- Pension payments are not subject to social security contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Voluntary participation
- Persons residing in Poland with taxable income and of at least 16 years of age.
General finances
- Fully funded personal pension plans based on contribution payments and capital revenues.
Contribution payments
- Insured persons provide contribution payments and decide upon its amount individually (capped by maximum amount).
State support
- Tax-deductible contribution payments (up to a defined limit).
- Different finance institutions chosen by participant: general pension societies, investment fund companies, employee pension societies, insurance companies.
- The ‘Polish Financial Supervision Authority’ (Komisja Nadzoru Finansowego) regulates licenses, oversees and sanctions the pension schemes.
- Minimum age 65; minimum contributory period: 5 years.
Pension payments
- Defined contribution, primarily based on the amount of contributory earnings, length of contributory period and capital revenues.
- Monthly annuity or one-time lump sum payment.
Taxation and social security contributions
- Payments are subject to lower income tax (flat 10%), if paid at age 65 or after.
- Pension payments are not subject to social security contributions.
Legal Basis: Individual Pension Accounts and Individual Pension Security Accounts Act (ustawa o indywidualnych kontach emerytalnych oraz indywidualnych kontach zabezpieczenia emerytalnego).
Individual Pension Accounts
Indywidualne konto emerytalne, IKE
Coverage
Voluntary participation
- Persons residing in Poland with taxable income and of at least 16 years of age.
Financing
General finances
- Fully funded personal pension plans based on contribution payments and capital revenues.
Contribution payments
- Insured persons provide contribution payments and decide upon its amount individually (capped by maximum amount).
State support
- Not available for contribution payments (pension payments are tax-free).
Administration
- Different finance institutions chosen by participant: general pension societies, investment fund companies, employee pension societies, insurance companies.
- The ‘Polish Financial Supervision Authority’ (Komisja Nadzoru Finansowego) regulates licenses, oversees and sanctions the pension schemes.
Qualifying Conditions
- Minimum age is 60; minimum contributory period: 5 years.
Benefits
Pension payments
- Defined contribution, primarily based on the amount of contributory earnings, length of contributory period and capital revenues.
- Monthly annuity or one-time lump sum payment.
Taxation and social security contributions
- Payments are not subject to income tax if paid at age 60 or after (other payment arrangements are subject to capital gains tax).
- Pension payments are not subject to social security contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Voluntary participation
- Persons residing in Poland with taxable income and of at least 16 years of age.
General finances
- Fully funded personal pension plans based on contribution payments and capital revenues.
Contribution payments
- Insured persons provide contribution payments and decide upon its amount individually (capped by maximum amount).
State support
- Not available for contribution payments (pension payments are tax-free).
- Different finance institutions chosen by participant: general pension societies, investment fund companies, employee pension societies, insurance companies.
- The ‘Polish Financial Supervision Authority’ (Komisja Nadzoru Finansowego) regulates licenses, oversees and sanctions the pension schemes.
- Minimum age is 60; minimum contributory period: 5 years.
Pension payments
- Defined contribution, primarily based on the amount of contributory earnings, length of contributory period and capital revenues.
- Monthly annuity or one-time lump sum payment.
Taxation and social security contributions
- Payments are not subject to income tax if paid at age 60 or after (other payment arrangements are subject to capital gains tax).
- Pension payments are not subject to social security contributions.
Legal Basis: Individual Pension Accounts and Individual Pension Security Accounts Act (ustawa o indywidualnych kontach emerytalnych oraz indywidualnych kontach zabezpieczenia emerytalnego).