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Some 2 Mln Poles Expected to Open Individual Retirement Accounts, 32% Seek Bank Offers 

Interfax

August 31, 2004




Some 2 mln Poles are expected to set money aside in individual retirement accounts (IKEs) yet in 2004, with some 32% of them turning to banks as the institution of choice to manage their IKE, a Pentor polling agency report shows. 
Many Poles are undecided about the idea of the IKEs, which will be available after September 1. Of those polled, 40% are undecided about the managing institution and 48% do not know how much they would be willing to save in the retirement accounts. 

Along with banks, insurers can count on a big chunk of the new market, with 16% of Poles declaring they would open retirement accounts through them. Investment fund managers can count on 8% and brokerages on 4%, the poll showed. 

Most Poles are not willing to save a significant amount of money through the IKEs, as only 4% declare willingness to save 80% or more of the maximum legal amount, which is 150% of the average Polish yearly salary, or PLN 3,500 in 2004. One-third of Poles plans to save less than 50% of that amount. 

Polish legislation regulating individual pension plans comes into force on September 1. In a move to boost long-term capital accumulation and compensate for shortfalls in the current private pension savings scheme, Poland will allow after-tax earnings to grow tax-free in individual retirement accounts that will pay tax-free benefits to owners after the age of 60. 



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