Employee Capital Plans (PPK) are a general, entirely private system of long-term system to save for retirement. PPK will be a capital plan for employees which will be obligatorily* implemented by employers. Employee will participate in PPK on a voluntary basis.
The described assumptions regarding PPK stem from the bill on employee capital plans approved by the Sejm (1.10.2018) and the Senate (26.10.2018). Currently the bill is pending the President’s signature and announcement. The bill is to enter into force on 1.01.2019.
*PPK bill will not be applicable to employers who in the dates indicated in the bill run Employee Pension Plans (PPE), calculate and pay basic premium to the benefit of their employees (at least 25% of employees) in the amount of at least 3.5% of their remuneration.
You can combine tax benefits with the advantages offered by investment funds.
Your pension may be equal to
30-40% of your last salary *
The pension system is to a high extent based on the repartition principle which means that the pensions of the current pensioners are funded from the contributions of the current employees.
At present, there are nearly three working persons per one retiree but in 2050 there will be only two **
* source: pension calculator of the Social Security Fund (ZUS)
** source: wyborcza.biz