Poland's KNF warns of early withdrawals undermining employee savings plans

Poland’s Financial Supervision Commission (KNF) highlighted a growing tendency among participants to withdraw funds from the Employee Capital Plans (PPK) before reaching age 60. In its statutory review for 2026, the regulator noted that only 8 % of participants made withdrawals in 2025, and 56 % of all withdrawals were one‑off events, indicating that repeated “arbitrage” is marginal. Contributions to PPK rose sharply, with a 33 % increase from 2.73 bn zł in Q4 2025 to 3.63 bn zł in Q1 2026, while the value of withdrawals grew slower, reducing the payout‑to‑new‑contributions ratio from 27.55 % to 22.95 %. KNF suggested that the program’s design, which allows participants to retrieve their own contributions and 70 % of employer contributions at any time (subject to tax and loss of state subsidies), may need reforms to enhance its long‑term attractiveness and to address concerns that early cash‑outs could erode the scheme’s savings purpose.