A revolution in saving for retirement? Proposed changes to IKE, IKZE, PPE and PPK

Seven key proposals – what will change in saving for retirement?

Work on the reform of voluntary retirement savings programs is gaining momentum. The Working Group of the Problem Team for Social Insurance at the Council for Social Dialogue prepared a report which included as many as seven main proposals for changes.

These include combining IKE and IKZE into one IKE+ product, introducing a universal umbrella account in which the saver could simultaneously hold various asset classes, standardizing the withdrawal age to 60, strengthening tax incentives, seniority bonuses for long-term savings, creating pension information where all pension entitlements could be viewed in one place, and increasing the savings capacity, i.e., among others. increasing the IKZE limit multiplier.

Experts divided: simplification or chaos?

The changes are aimed not only at simplifying the system, but also at increasing the attractiveness of saving for retirement. However, experts do not agree on the proposed solutions. Marcin Materna, an investment advisor from Millennium Dom Maklerski, in an interview with "Rzeczpospolita" praises the systemic approach, but points out that it may already be too late for major changes.

OKI is introduced and will be the main form of saving. Moreover, there is probably no money in the state budget to make the current tax systems more attractive - he emphasizes.

Oskar Sobolewski, a labor market expert, criticizes the idea of ​​combining IKE and IKZE, pointing out that the diversity of these products is their strength. In turn, the seniority bonus and changes in tax incentives meet with his approval.

Less bureaucracy, more incentives for employers

Dr. Marcin Wojewódka, president of the Pension Institute, draws attention to the need to simplify procedures for employers. In his opinion, if the state wants to have more pension money, it should reduce formalities and reward companies that support their employees in saving.

He also praises the proposals equalizing the systemic position of PPE with PPK and abolishing the obligation to register changes in PPE with the Polish Financial Supervision Authority.

What's next?

The Report of the Working Group will now be sent to the Social Security Team and then to the RDS Presidium. If the social partners are unanimous, proposals for changes will be sent to the government, which will have to deal with them.