IKE — Individual Retirement Account. What is it and how does it work?

What is IKE?

IKE (Indywidualne Konto Emerytalne — Individual Retirement Account) is a special investment account with tax benefits, created to encourage Poles to save independently for retirement. Main benefit: no Belka tax (19%) on capital gains when withdrawing after age 60.

How does IKE work?

1. You contribute money to IKE account (up to annual limit)
2. You invest — buy ETFs, stocks, bonds, funds
3. Profits grow without current tax deductions
4. You withdraw after age 60 — without Belka tax

This means the entire profit amount works for you throughout the savings period — compound interest without being "cut" by the tax office.

Contribution limits

IKE contribution limit changes yearly and equals three times the average forecasted monthly salary. In 2026, it's approximately 23,500 PLN annually.

Unused limit doesn't carry over to the next year — if you don't contribute in a given year, you lose that limit permanently.

Forms of IKE

IKE can be held as:

• Brokerage account — best option. Buy ETFs, stocks, bonds yourself
• Investment fund — TFI manages your money (higher fees)
• Bank account (deposits) — safe but low returns
• SKOK account
• Voluntary pension fund

The vast majority of experts recommend IKE as a brokerage account — low costs and full investment control.

Where to open IKE?

Popular IKE brokerage options:

• XTB — 0% commission on ETFs, intuitive platform
• mBank (eMakler) — convenient if you have mBank account
• BOSSA — wide range of instruments
• DM PKO BP — large, well-known brokerage house

Early withdrawal

You can withdraw money from IKE before age 60, but:

• You lose tax benefit
• Pay 19% Belka tax on profits (like regular account)
• Withdrawal applies to entire amount (can't withdraw partially)

This isn't a penalty — you simply return to standard tax conditions.

IKE and retirement

IKE is the third pillar of Poland's retirement system:

• First pillar — ZUS (mandatory)
• Second pillar — OFE (being phased out)
• Third pillar — IKE, IKZE, PPK (voluntary)

Considering ZUS pension forecasts (30-40% of last salary), IKE isn't a luxury — it's a necessity.

How much can you earn on IKE?

Example: you contribute 20,000 PLN yearly for 25 years, invest in global ETF (7% annual return):

• Contributed: 500,000 PLN
• Portfolio value: ~1,350,000 PLN
• Profit: ~850,000 PLN
• Belka tax on regular account: ~161,500 PLN
• Belka tax on IKE: 0 PLN

You save over 160,000 PLN on taxes alone.

How Freenance can help

Freenance tracks your IKE together with other assets. You see how much you've contributed, how much remains to the limit, and how IKE affects your path to financial independence — all in one dashboard.

👉 Track your IKE in Freenance — freenance.io