Individual Pension Accounts are used for the purpose of additional pension savings within the III pillar. According to specialists’ estimates, a pension based solely on an obligatory plan (I and II pillar) may account only for 50-60% of the last salary (in case of a person receiving a salary equal to a national average during the whole professional career ). Such a dramatic decrease in earnings may badly affect the standards of living . For this reason, to give the Poles an opportunity for additional saving for pension and to entice them to take care of their financial future themselves , Individual Pension Accounts were created .

In order to promote the additional saving programme within the III pillar, the legislator exempted Individual Pension Accounts from the so-called ‘Belka’s tax’ , i.e. 19% tax rate, a lump sum tax on capital gains . In case of pension capital accumulated over years, such tax may total a large sum of money . For this reason, it is worth using the new IPA formula not to pay this tax.

The limit of an annual contribution payable to IPA is regulated by an act . Contributions made during one calendar year shall not exceed 150% of the estimated average monthly remuneration envisaged by the national economy in a given year , specified in the budget act . For example, in 2006, PLN 3 521 can be paid into IPA in total .

Another advantage of IPA is that you don’t have to make regular contributions . Funds can be paid into irregularly , e.g. when getting a cash injection . For this reason, IPA can be successfully used by people with no fixed income (e.g. freelancers).

Individual Pension Accounts system is a good solution for all age groups . Young people will profit from this tool by being exempted from paying ‘Belka’s tax’ as in their case it would be tax on capital accumulated over a very long time, e.g. 30 years. Within their pension accounts, twenty- or thirty something old people will actually save more money than a simple total of contributions as after a few or more years of investing, the majority of savings will not come from successive contributions but from gains generated from already accumulated savings . Whereas elderly people will have an opportunity to profitably invest their savings exempted from tax on capital gains .

With DM BZ WBK you can enjoy investing your savings at ant time and any place, at your convenience . To do so, it is not necessary to go to the Customer Service Point . Inwestor online allows for an access to IPA via the Internet or WAP. It is also possible to invest via the telephone . Keeping your IPA with DM BZ WBK, you are not charged any management fee and what’s more you will receive professional assistance in capital investment .