Discover the Benefits of PPK Beyond Retirement in the Series Secure Future for Teachers Episode 3

The Pracownicze Plany Kapitałowe (PPK) offers numerous benefits that extend beyond retirement savings. This program, designed for employees, provides valuable financial assistance to educators in various situations. Ewa Trojan, Director of Corporate Clients at TFI PZU SA, shares insights into these lesser-known advantages.

Access to Funds Before Retirement

Many teachers view PPK solely as a retirement plan. However, PPK allows early access to funds under specific circumstances. Participants can withdraw funds without penalties before the age of 60 for serious illnesses or for purchasing property.

• Withdrawal for Illness: Up to 25% of savings can be accessed if the participant, their spouse, or child faces a serious health issue.
• Home Purchase or Construction: Participants can withdraw 100% of their savings to cover down payments on homes with a repayment obligation within 15 years.

These provisions make PPK an essential financial tool, providing immediate support during critical life events.

Inheritance of PPK Funds

Another significant advantage of the PPK is the clarity surrounding inheritance. Participants can designate beneficiaries who will receive the funds upon their death. If a beneficiary is not named, the funds are included in the estate and passed on according to inheritance laws.

The total amount inherited includes both contributions and any investment gains accrued during the participant’s lifetime, ensuring the funds contribute to family wealth.

Fund Transfer Between Employers

When teachers change jobs, their PPK savings remain intact. Funds are linked to the individual, not the employer. New employers can facilitate the transfer of these savings to a new account, ensuring continued growth and security.

The transfer process is straightforward: employees must submit a request within seven days of starting their new role. If they miss this window, they can still request a transfer independently.

Security and Oversight

Participants can rest assured that their investments are secure. The PPK operates under the strict supervision of the Financial Supervision Authority. Individual accounts are separated from the institution’s assets, providing additional protection against any financial issues that may arise within the institution.

The risk level of investments decreases as participants approach retirement age, further enhancing security while allowing for potential growth in their funds.

Monitoring Investments and Financial Education

Participants have access to the inPZU platform to track their account balances and contribution history. Regular updates encourage savers to engage with their financial futures actively.

Additionally, TFI PZU hosts webinars and training sessions to educate teachers about PPK and financial planning. These initiatives promote financial literacy and encourage proactive management of personal finances.

Conclusion: Embracing PPK for a Secure Future

Participating in the PPK not only prepares teachers for retirement but also equips them with resources for life’s unforeseen challenges. This program is a valuable asset for those starting their careers, fostering a habit of saving that leads to financial stability.

Ewa Trojan emphasizes that early participation maximizes benefits. Even small, regular contributions can result in significant growth over time, making the PPK a wise investment for educators seeking a secure future.