Record Growth in PPK Accounts With Experts Warning of Potential Pitfalls

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ago 59 minutes

At the end of October, the total net assets in Employee Capital Plans (PPK) reached PLN 42.60 billion. This marks a record monthly increase of PLN 1.78 billion, as calculated by the PFR Portal PPK.

Record Growth in PPK Accounts

By the end of October 2025, an individual participant in the PPK program, who started saving in December 2019, could see their savings increase significantly. Participants earning PLN 5,300 until the end of 2023 and PLN 7,000 starting in 2024 may witness gains ranging from 138% to 198%, depending on the type of target-date fund. These remarkable growth figures indicate that participants might have an additional PLN 11,380 to PLN 16,420 in their accounts compared to their initial contributions.

Risks of Early Withdrawals

With the festive season approaching, the temptation to withdraw funds from PPK accounts increases. However, experts caution against making early withdrawals. Marta Damm-Świerkocka, a board member of PFR Portal PPK, highlighted that withdrawing money for any purpose could lead to significant losses. All government contributions would be forfeited, and 30% of employer contributions would be transferred to ZUS, the pension insurance fund. Additionally, a 19% capital gains tax would apply to any profits withdrawn, known as the “Belka tax.”

Damm-Świerkocka further advised that in cases of urgent financial need, individuals should consider consumer loans as a more beneficial option rather than tapping into their PPK savings. This is due to the fact that participants cannot withdraw only a portion of their accumulated funds; they must deplete their entire savings.

PPK as a Financial Safety Net

According to Marta Damm-Świerkocka, PPK is not merely a savings vehicle. It serves as a financial cushion that provides security in unforeseen circumstances and ensures financial independence during retirement. The funds are entirely inheritable, offering protection and support for one’s children.

Oskar Sobolewski, an expert in retirement and labor markets at HRK Payroll, emphasized the importance of a long-term perspective toward PPK. Participants should ideally avoid withdrawing funds due to temporary circumstances unless it is for serious health-related needs, a situation expressly allowed under PPK regulations.