Since its implementation, the PPK programme has become one of the most significant elements of Poland’s savings system.
Employee Capital Plans (PPK) in Poland are currently celebrating their fifth anniversary. Since its implementation, the PPK programme has become one of the most significant elements of Poland’s savings system. Over the years, many doubts have arisen regarding retirement savings, ranging from basic questions such as whether it is worth saving for future retirement and concerns about the potential repetition of the OFE situation, to more complex issues about the mechanisms and safeguards of investments managed by financial institutions. People are questioning the benefits PPK has brought to participants and what the future might hold.
How did PPK become one of the most important elements in Poland’s saving system?
PPK was introduced on 1 July 2019, initially covering companies employing over 250 employees. The programme aimed to increase the long-term savings of Poles through co-financing by employees, employers, and the state. Gradually, through subsequent waves of implementation, it covered more employers until it included all companies operating in Poland. As a result, it became an inseparable employee benefit offered by all companies in the country.
Over five years, PPK has gathered 3.66 million participants who save together with their employer and the state. As of the end of November 2024, PPK accounts held nearly 29.59 billion PLN, accumulated in over 326 thousand entities that enable their employees to join the programme. Additionally, it gained popularity thanks to automatic enrolment, which in 2023 attracted an additional 700 thousand participants.
PPK remains stable in face of adversity
In recent years, despite many challenges, PPK has had to face numerous obstacles, including the COVID-19 pandemic and the war in Ukraine, which significantly impacted financial markets. Despite this, the programme remained stable and continued to develop, thanks to its solid foundations and proper investment directions set by financial institutions.
Benefits for participants
For PPK participants, the past five years have been extremely beneficial. A typical participant earning 5,300 PLN, saving in PPK since December 2019, has accumulated between 11,634 PLN and 13,234 PLN in their account, representing 124% to 155% more than they contributed. The growing awareness of employees about the benefits of participating in PPK is also evidenced by the steadily increasing participation rate, which in November 2024 was nearly 50% despite initial employee reluctance. Thanks to continuous education and promotion of the advantages of this solution, it is likely there will be another increase in the number of participants next year.
What will PPK’s future be?
Everyone is wondering what awaits PPK in the coming years. What investment directions will financial institutions take and what will the returns on participants’ accounts be? It is certain that the programme aims to further increase the number of participants and accumulated funds. In the coming years, continuous employee education on the programme’s assumptions and functioning, as well as automatic enrolment, which is conducted every four years, will undoubtedly contribute to this. The last automatic enrolment took place in 2023, and in 2027 the next one awaits all employees who opted out of the programme.
The first five years of Employee Capital Plans have been a period of very dynamic development and building solid foundations for the financial future of Poles. Despite encountering obstacles resulting from economic conditions and Poles’ experiences with previous solutions, the programme not only increased savings awareness but also brought real benefits to participants who decided to stay in it. We hope future years will bring further successes and its continued development.
Edyta Nowak-Skawska
Head of the Health & Benefits Department
GrECo Poland
T +48 882 366 293
