IKE / IKZE
IKE (Individual Retirement Account) and IKZE (Individual Account for Retirement Security) are voluntary forms of long-term retirement savings within the so-called 3rd pillar of the Polish pension system. They are increasingly appearing in employee benefit offerings – alongside PPK and PPE – as an element supporting the financial security of employees.
The 3rd pillar of the pension system
The Polish pension system is based on three pillars. The 1st pillar consists of mandatory contributions collected by ZUS, the 2nd pillar is associated with OFE, and the 3rd pillar is entirely voluntary, serving to independently build additional retirement savings. This includes IKE, IKZE, as well as PPK and PPE run by employers.
How do IKE and IKZE differ?
Both accounts are individual and voluntary, but they offer tax benefits at different stages:
- IKE – benefit at withdrawal. Contributions are made from already taxed income, but funds withdrawn after reaching the statutory age (generally 60) and meeting certain conditions are exempt from the 19% capital gains tax (the so-called Belka tax). The annual contribution limit is three times the projected average remuneration.
- IKZE – benefit at contribution. Contributions can be deducted from the PIT tax base in a given year, and withdrawals after age 65 are subject to a flat-rate tax of 10%. The annual limit is 1.2 times the average remuneration (1.8 times for self-employed individuals).
The monetary contribution limits for IKE and IKZE are set and announced annually, so it's advisable to check the current values applicable in a given year before making a contribution.
IKE and IKZE as an employee benefit
Unlike PPK and PPE, which are established by the employer, IKE and IKZE accounts are opened independently by the employee. However, companies can support saving – for example, through financial education, supplementary payments as part of their benefit policy, or cooperation with a financial institution on preferential terms. Caring for employees' long-term financial security is an increasingly important element of wellbeing strategies and employer branding.