Employee Capital Plans: Who will invest and how will they invest?

In less than six months, the largest companies will be required to set up employee capital plans (PPK), the main purpose of which will be to multiply the accumulated funds and increase the financial security of their participants in retirement. The Act on Employee Capital Plans (of October 4, 2018, Journal of Laws item 2215, hereinafter: PPK Act) specifies in detail the rules for investing these funds, as well as the level of remuneration for financial institutions in this respect.

They will go to target date funds, where they will be invested first in riskier instruments and, as the years go by, in increasingly safe ones.