IKE, IKZE or PPK are products of the third pension pillar. More and more people are opting for this type of solution. Why? Because according to the forecasts presented by the Social Insurance Institution and independent analysts, future retirees can expect a significant decrease in their income after retirement. This is caused, among others, by the decline in the replacement rate, i.e. by the deepening demographic decline. No wonder that Poles began to look for additional ways to ensure financial security for the future. One of them is the state-regulated IKE and IKZE. Comparing these two voluntary "investment funds" and answering the question of which one is better is a dilemma for many people. What is the difference between IKE and IKZE? What to choose - PPK, IKE or IKZE?

IKE, IKZE - what is it?

IKE, IKZE and currently PPK are included in the third pension pillar (Open Pension Funds are referred to as the second pillar). So these are additional, voluntary ways to save money that can become additional contributions to the pension. Making deposits and subsequent withdrawals, as well as other detailed operating rules, are set out in the laws governing each of these components. IKE and IKZE are popular solutions offered by institutions such as:

  • insurance companies,
  • banks,
  • Investment funds,
  • brokerage houses,
  • pension funds.

The Individual Retirement Security Account (IKZE) and the Individual Retirement Account (IKE) share many similarities, but we can also see many significant differences. Which system wins in the IKZE vs IKE clash? How does IKE and IKZE compare?

IKE – IKZE: comparison

The choice between IKZE and IKE is a key issue for many people who are thinking about retirement at the beginning of their career. That is why it is so important to know the similarity and difference between IKE and IKZE. In many cases, how you want to save is important. Are you interested in calm and safe savings, or maybe you prefer to take the risk associated with investing? Making the right decision is not easy, so it is worth taking advantage of the professional advice of our specialists. As Open Profit, we perfectly understand how important it is to think about finances in the future, which is why we offer permanent accounting cooperation with a personal specialist who will also help you choose between IKE vs. IKZE.


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IKE and IKZE: similarities

It is worth noting that we can notice some similarities between IKE and IKZE. A comparison of the two accounts clearly shows that both Individual Retirement Accounts and Individual Retirement Security Accounts have a deposit limit. Although these amounts are different, in both cases you can make one-time payments up to a certain limit, break them into more convenient regular or irregular monthly installments.

Moreover, both in the case of IKE and IKE, the funds accumulated are exempt from capital gains tax. In addition, Individual Retirement Accounts and Individual Retirement Security Accounts allow for complete inheritance of saved capital. In both cases, no gift and inheritance tax is paid.

An important issue is also the fact that the funds accumulated in IKE and IKZE can be used as own contribution to take out, for example, a mortgage loan. In such a situation, the bank will block the funds up to the amount of the required deposit, while the surplus will still remain on the client's account. In this way, part of the funds will be able to be used after retirement.

One of the similarities is also the target group to which both programs are addressed. These are people working under an employment contract. Deposits can be made from the age of 16.

These are the main similarities that are available in both programs. Looking only at these issues, you can think that regardless of whether you choose IKZE or IKE, you will not feel much difference. However, this is a mistake, because the Individual Retirement Security Account and the Individual Retirement Account have several fundamental discrepancies.

IKE – IKZE: differences

There is also quite a difference. IKE and IKZE are accounts that are intended for people who consciously want to plan their retirement. Despite this, in many aspects we will see a different approach to the issue of withdrawing funds or taxation. It should also be remembered that the payment limit is both a similarity and a difference between IKE and IKZE, because its amount differs significantly. In the case of IKZE, it is 1.2 times the average salary, while in IKE it is as much as 3 times the average salary. Here are the other differences between IKE and IKZE.

IKE and IKZE differences in the withdrawal of funds

The most frequently commented difference is the one regarding the method of withdrawing funds and their taxation. IKE and IKZE accounts are best treated as retirement savings, which should, by definition, be paid out only when we acquire pension rights or reach the age specified in the law. In the case of IKZE, the minimum age to benefit from the tax savings is 65 years. It is then necessary to pay a flat-rate income tax in the amount of 10% of the withdrawal.

From the IKE Account, you can most advantageously withdraw the accumulated finances after the age of 60 or 55 after the earlier acquisition of pension rights. It is worth mentioning that the withdrawal is not subject to capital gains tax. This is possible when one of the following conditions is met, such as:

  • making payments to IKE for a minimum period of 5 any calendar years,
  • making half of the value of payments no later than 5 years before the date of submitting the application for payment.

IKE and IKZE: difference in early withdrawal of funds

It is also worth considering the earlier withdrawal of funds in unforeseen situations, because IKE and IKZE provide such a possibility. However, they approach this issue differently. The use of capital accumulated in IKE before reaching the appropriate age is associated with the need to pay capital gains tax. We can withdraw both the whole amount and part of it.

In the case of IKZE, it is also possible to withdraw it earlier, but the funds must be used in full - so you cannot continue saving. The previously saved income tax is then at stake, which will be taxed with the withdrawal of funds.

IKE and IKZE: taxes

IKZE is subject to tax preference, which consists in deducting it from the tax base for personal income tax. What does this mean in practice? The possibility of deducting the tax base of payments translates into greater savings, which some people decide to invest, e.g. in the form of investment funds. In the event of inheritance, the accumulated capital can be transferred to your account in the third pension pillar or withdrawn, which involves taxation of the payment with a flat-rate income tax.

However, in the case of IKE, payments cannot be deducted from the tax base, but in the case of inheritance of funds, the capital that will be paid out by the entitled person after the death of the account owner is not taxed. Here you can also decide to transfer this money to your own IKE or IKZE savings account.

IKE or IKZE - what to choose?

Both IKE and IKZe have a number of advantages. Certainly, the use of the third pension pillar is a good decision that will bear fruit in the future. However, it is worth choosing the right solution that will complement the saving plan. IKZE is best treated as a tool for easy saving, while IKE also allows you to make short-term capital investments.

Many people wonder if it is possible to have IKE and IKZE at the same time. Interestingly, there is a possibility to use these two forms of saving at the same time. This solution means that you significantly increase your future pension and ensure a peaceful autumn of your life.


  1. What is IKE and IKZE?

IKE and IKZE are accounts that belong to the third pension pillar, i.e. a voluntary savings system introduced by the state. Both the Individual Retirement Account and the Individual Retirement Security Account are a way to increase your future pension.

  1. Can you have IKE and IKZE at the same time?

Yes, you can use both methods of saving at the same time. Thanks to this, you can take advantage of the advantages of each program and significantly increase your retirement income.

  1. What are the main differences between IKE and IKZE?

We will notice the main differences primarily in terms of taxation and the approach to early withdrawal of funds. What's more, IKE can also be used to conduct investments, and IKZE is stable saving in safe conditions.