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Savings in the 2nd and 3rd Pillar Have Started to Be Used as Collateral for Loans

Pension savers, despite legal restrictions, are using their savings even before they acquire the right to a pension. Most often, they take out a loan and agree with their relatives (guarantors) that in the event of their death before the loan is repaid, they will leave their capitalized pension savings in the second and third pillars.

Although the money in the personal account of the second and third pillars of mandatory and voluntary pension insurance is the property of the insured, the owner cannot formally use their money before acquiring the right to a pension. This money is, according to the law, intended exclusively for the payment of lifelong pensions (old-age, disability, family) and is ‘frozen’ until the moment of acquiring pension rights. However, the money in the personal account can be disposed of according to the Inheritance Act.

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