We calculate the size of your future pension so that you could better prepare for what's to come. You'll see how much you could receive from all 3 pension pillars and how each contributes to your total pension:

• I pillar – the state
• II pillar – II pillar pension funds
• III pillar – additional pension savings with Next Generation Pension.

The calculations are based on the data you entered on this webpage. This data includes your age, monthly net income (income after tax), and the size of your monthly Next Generation Pension contribution. The calculations also take into account whether or not you've saved in the II pillar until now.

The expected savings period are the years left until your retirement age. The expected retirement age is the official retirement age the state provides. From the year 2026, that age will be 65.

We assume that your expected salary will change the same way as the state's average salary changes from now until your retirement, i.e. will grow by 4% annually.

We calculate the historical salary based on the state's average salary changes until now.

We assume that you started working at age 22 and work continuosly. We assume you receive a salary from which your employer makes social security contributions until the official retirement age.

The calculations are based on the assumption that the tax environment will not change throughout the savings period and will remain as it is now.

To calculate the size of your I pillar, we look at the impact of demographic indicators on Estonia's pension insurance budget.

Source: European Commission (2024). 2024 Ageing Report, Economic and Budgetary Projections for the EU Member States (2022–2070) [Report].

Your I pillar consists of four parts:

1. Qualification period part
2. Insurance part
3. Joint part

We consider all these parts to calculate the size of your I pillar.

More about the I pillar

If you marked that you're saving in the II pillar, we assume you started when you turned 22. If you turned 22 before 2003, we assume you started saving in the II pillar in 2003. We assume that wou will continue saving until retirement age.

If you didn't mark that you're saving in the II pillar, we assume you will start saving in the II pillar from now on.

To calculate the size of your II pillar, we use the principle of lifecycle pension funds. As you get closer to retirement, the share of risky investments gradually reduces until it reaches 18.5% at retirement age.

We use historical investment returns of II pillar pension funds to calculate your possible savings. The average annual investment return depends on your age. Investment return after deducting the management fee ranges from 2.9% to 6.1%.

We assume that the monthly contribution you entered will increase 4% annually, same as your salary is projected to increase.

The calculations include only your Next Generation Pension savings. Make sure to evaluate your other III pillar savings before making further savings decisions.

To calculate the size of your Next Generation Pension savings, we use the principle of lifecycle investment strategy. As you get closer to retirement, the share of risky investments gradually reduces. The average annual investment return before the Next Generation Pension management fee depends on your age (investment period) and on the investment scenario.

• The longer you save, the higher your potential returns. Long-term expected average annual return is 8.14% (neutral scenario) with potential to go up to 10.77% (positive scenario) or down to 5.47% (negative scenario).
• Saving for the short-term carries more risk due to market fluctuations. As an example, the expected average annual return for a one-year period is 2.65% (neutral scenario) with potential to go up to 11.03% (positive scenario) or even lose money with down to -6,09% (negative scenario).

Source: Equity returns are based on the MSCI ACWI Price Index; bond returns on the Bloomberg EuroAgg Total Return Index. Historical data covers the period from 31 December 2004 to 31 December 2024.

The Next Generation Pension fee is an annual fee starting from 0.6% of your savings. The annual fee rate gradually decreases based on how much you've accumulated.

Fee rate size (% of the accumulated amount)

• Up to €9999 saved: 0.6%
• €10 000 to €19 999 saved: 0.5%
• €20 000 to €49 999 saved: 0.4%
• €50 000 to €99 999 saved: 0.3%
• More than €100 000 saved: 0.2%

We assume that when you reach retirement age, you will stop working. We assume that you will receive regular payouts from I pillar pension, II pillar pension and Next Generation Pension savings.

We calculate the payouts of your II pillar and Next Generation Pension savings by dividing your projected savings by the expected life expectancy in months. According to Eurostat data, life expectancy at age 65 is 17 to 25 years.

We consider the rest of your savings to be invested with an average annual investment return of 1.2%. We apply this principle to better compare the results from different pension fund providers.

We calculate the size of your future pension in both future and present value. Future value provides an estimate of the forecasted income in nominal terms. Present value helps evaluate how much your future income may be worth in current terms. We calculate present value by taking into account inflation rate. Based on the European Central Bank five-year inflation forecast for the euro area, the long-term average yearly inflation rate is 2%.

The calculations use the valid income tax rate of 22%. The state refunds income tax on III pillar contributions that are up to 15% of your annual gross income, but no more than €6000. You must submit an income tax return to get the refund.

The calculations and projected pension forecast are for illustrative purposes and based solely on the assumptions used in the calculations. Saving results or indemnities in such amounts are not guaranteed. As with all investing, your money is at risk. The value of your savings can go down as well as up. You could get back less than you put in or lose it all. Past performance does not guarantee future performance. We provide historical returns, expected returns and probability projections only for informational and illustrative purposes. These may not reflect actual future performance. The tax treatment of your investment will depend on your individual circumstances and may change in the future.

Before making an investment decision, make sure to get acquainted with all published information regarding Next Generation Pension, including the terms and conditions, investment strategy and key information document. Information about SEB funds is available on seb.ee. Information about other funds is available on pensionikeskus.ee. If necessary, sign up for a consultation.