Pillar II

Pension insurance (so-called "the second pillar") is obligatory in Poland. Such insurance - in other words participation in OFE - provides us with additional funds for retirement. Because of the money accumulated in the fund at the time of retirement we receive benefits not from one but from two sources. The first is Social Security (ZUS), so called "the first  pillar", while the second is OFE. However we need to keep in mind that saving in OFE will not provide us the same standard of living or the same income we used to have while working.

 

  • Putting the money aside for retirement within the second pillar is compulsory in Poland
  • Mandatory contributions will not provide us a high standard of living at retirement

 

 

 

 

OFE is mandatory, but it is the customer who decides which fund he/she wants to choose. There is a number of OFE funds to choose from. Attention! If, despite being called, we do not choose the pension fund, we will be randomly selected for OFE. It should be our conscious decision. After 30-40 years of saving in OFE, capital accumulated by different funds can vary. Therefore, it is not worth relying on the draw. Choosing OFE we should check the results of the investment funds for the longest period. From our point of view, it is essential that the fund earns as much as possible in the long run. Results for a single year or two years are not authoritative.

  • Let’s think about the choice of the fund by ourselves. Let us not be chosen!
  • Let’s check the results of OFE for the longest period

 

 

From time to time PTE (the company managing our OFE) will send information about our account to the address indicated by us. The letter will also include information about the value of our pension. If , after some time, we believe that the fund we have chosen does not meet our expectations, we can change it.  However you need to consider it well before taking the decision. Remember that the most important thing is the length of the fund's performance. Poor results for a single year do not have to mean that our pension will be low.

  • We have the right to change the open pension fund
  • The poor performance of the fund for one year does not mean that it is a bad fund

 

What is the third pillar, how to save?

oszczedzac

    What we call the third pillar is in fact voluntary and extra savings for the future retirement. The first two pillars - ZUS and OFE - are mandatory. There are many additional forms of savings and the choice of appropriate model depends entirely on us. One of the methods of systematic saving is a life insurance. It has the advantage that apart from additional funds for retirement, it also provides protection in case of death or injury of the insured.

Can I use the policy to invest?

inwestowac


   There are a number of products on the market that provide a decent life in old age. Insurance provides protection mainly in two ways. First, after the period of insurance, we get the money we have put aside for the last few years. Of course, multiplied on the market. Companies most often apply a safe investment policy. You should remember that insurance means primarily safety and security.

How to protect your own credit?

kredyt

    Our documents and/or payment cards have been stolen - such situation can happen to everyone. Everyone may also have an unfortunate accident and may lose the ability to work. How then repay the loan, which we have recently got? This is the purpose of finance insurance. There are products to protect us from the consequences of a credit card theft as well as  credit insurance against unemployment or the loss of working capacity.

The event in this case is simply a transition to retirement. At this point, the money which we put aside over the years in the second pillar, is activated. In case of death of the OFE’s member, all collected funds are inherited. The money will go to inheritors or to the ones indicated by the deceased.


Retirement = additional capital

When taking retirement, the money accumulated in OFE will be paid to us.

Knowledge about your retirement

OFE management companies, or PTE, from time to time will keep us informed about the value of the accumulated funds.

Money is inherited

In case of our death the assets accumulated in OFE are inherited.