Benefits of Next Generation Pension
How it works
- You make regular contributions at your own pace
- We invest your savings based on your age:
- When you’re young, we take advantage of higher risk investments
- As you get closer to retirement, we shift to lower risk - Compound interest rate helps your savings grow faster
How much will it cost
- You pay one fair, decreasing management fee.
- The more you save, the lower your fee rate becomes.
- There are no hidden costs, and no extra fees for adjustments.
Just 3 steps to subscribe
- Calculate how much you need for a sufficient pension
- Choose the monthly contribution that fits your pension goal
- Sign pension agreement on internet bank in a few clicks
Early start means smaller contributions
Compare Next Generation Pension vs P3 Pension plans
Next Generation Pension
Age 18+
You don't have to be an investing expert
Life cycle investment strategy
Risk level adjusted to age
Considers sustainability
Management fee rate decreases if assets grow
Semi-passive
nvestments are made in index funds. Risk level and equity share are reduced starting from the client's age of 50.
SEB III Pillar Pension Fund 18+
Age 18–64
Focuses on increasing the value of pension assets
Investment in shares up to 110%
High risk
Considers sustainability
Fixed management fee
Actively managed fund
Investments are mainly in shares. The risk level does not depend on the client's age.
SEB Climate Future Pension Fund Index
Age 18–52
Focuses on reducing the impact of climate change and increasing asset value
Investment in shares up to 100%
High risk
Considers sustainability, focuses on climate
Fixed management fee
Passively managed fund
Investments are made in index funds, the risk level does not depend on the client's age.
SEB III Pillar Pension Fund 65+
Age 53+
Focuses on preserving the value of pension assets
The fund primarily invests in bonds and less in shares
Low risk
Considers sustainability
Fixed management fee
Actively managed fund
Investments are mainly in bonds. The risk level does not depend on the client's age.
Questions and answers
Every day, there are a million little decisions you must make. With some, you trust the experts to take the lead. You trust the engineer to build you a house, mechanic to fix your car and hairdresser to cut your hair. We’re here to lighten the load with saving for your pension.
Securing your future doesn’t have to be complicated. With Next Generation pension, we’ll do it all for you.
- Watch your savings grow without the stress of making investment decisions yourself. No need to be a financial expert – with lifecycle investing, we’ll switch from riskier investments to lower risk ones as you age.
- Your only task is to set a comfortable amount to automatically contribute each month. Even small amounts can significantly accumulate over time.
- Trust our experts to invest and manage your contributions keeping your best interest in mind. We’ll regularly update you on your pension income progress on the internet bank.
Next Generation Pension is your personal autopilot working for your future 24/7. We’ll handle all the complexities, so you can just sit back and relax. Securing your future has never been easier.
Keep in mind that you will be the one bearing the investment risk. The value of your savings can go down as well as up. We cannot guarantee the preservation of your contributions.
Investing is complicated. We’re here to take the load off your shoulders. It’s our job to build an investment portfolio for you. We do that based on your age and will adjust it as you age. The idea is to optimize investment risk. When you’re still young, we will take advantage of higher risk investments. As you get closer to retirement, we will lower risk. This way your savings will have time to grow and be better secured from losing their value when you get older.
Keep in mind that investing involves risk. Past performance does not guarantee future performance.
Want to select investment risk on your own? Check out our III pillar pension funds
No, you won’t have to and you won't be able to choose where to invest. That’s what we’ll be doing.
Decide how much to save, and we’ll do all the rest. Our investment team have selected a range of well-diversified financial instruments and created a lifecycle investment strategy. This means your investment portfolio will change automatically as you get older. You won’t need to make any investment decisions or worry about swapping out your investments.
Want to select investment risk on your own? Check out our III pillar pension funds
Saving with Next Generation Pension is very, very flexible. We’ll do all the heavy lifting with investment decisions, but you’ll have full control over everything else. You can edit your monthly contribution size, contribution date and method. You can top up your savings. If you need, you can pause or cancel your contributions. You decide when to withdraw your savings and who will receive your savings when you’re no longer here. You can do all this in just a few steps – and whenever you decide – on our internet bank, free of charge.
Keep in mind that if you pause or cancel your contributions, we will not stop investing your savings. This means we will also deduct the monthly management fee.
We will deduct a fair and transparent management fee once per month. This will help us manage and invest your savings for a future-proof retirement. The initial management fee rate is 0.6% per year and it will gradually decrease as your savings increase. Your returns will (hopefully) grow, but your fee rate won’t. Quite the opposite – the more you save, the lower your fee rate will be. We will deduct the management fee automatically from your savings, so you won't have to make any payments on your own.
The state encourages saving for your pension. When you submit your yearly income tax return, you could get back 22% of what you contributed to your Next Generation Pension savings throughout the year. That’s your money – you can use it however you like. If you want, you can invest it back into Next Generation Pension and continue to grow your savings.
You can withdraw your Next Generation Pension savings whenever you need. These are your pension savings, so make sure whether withdrawing before retirement is the right choice for you. You can withdraw all your savings and terminate your agreement, or you can withdraw just a part of it and continue saving. If you want to withdraw just a part of your savings, you will need to retain at least €100 to keep your agreement going. Keep in mind that you will benefit most if you save regularly until the official retirement age.
If you withdraw your savings earlier, the state might tax the payout.
Next Generation Pension is an insurance-based long-term savings product. With this product, accumulated savings depend on your contributions and investment result. You will have all the benefits of an insurance agreement. You will be able to set one or multiple beneficiaries who will directly get your accumulated savings in case of your death. It’s for you to decide what proportion of your savings each beneficiary gets. You can change your beneficiaries and edit their share of your savings any time on the internet bank. For this savings agreement, the additional insurance amount is a fixed €1.
Data from the finance company MSCI shows that in the long term, the return rate of savings exceeds the inflation rate. In the example below, you can see the historic performance of the MSCI ACWI index that tracks nearly 3000 stocks in 47 developed and emerging market countries. To beat inflation, it’s important to stick to long-term saving. That’s how you’ll ride out short-term market downturns and inflation rates that accompany it.
100% equity portfolio
Adjusted to inflation
We provide historical data and returns only for informational and illustrative purposes. Past inflation data and performance does not guarantee future inflation data and performance.
We invest in financial instruments which at least promote environmental and social characteristics. We follow the United Nations principles for responsible investing. This type of investing prioritizes optimal environmental, social and governance (ESG) factors or outcomes. We invest in instruments which reduce exposure to controversial sectors, such as fossil fuels etc. Next Generation Pension does not have sustainable investments as its objective.
Read more about Environmental and/or Social characteristics and Sustainability-related disclosures
Didn’t find an answer?
Let’s talk!
You can contact us via phone, email, video call or in person.
Useful links
The service provider and distributor on this page is SEB Life and Pension Baltic SE, registry code 40003012938, acting through its Estonian branch, registry code 14857106. All mentions of "SEB" or "we" on this page refer always only to our life insurance company.
The information on this website is about our unit-linked life insurance service. We do not provide personal recommendations or instructions to invest when offering and selling this insurance service. We do not provide financial advice.
We rely on information from various sources we believe to be reliable, including clients and third parties. We cannot guarantee the accuracy and completeness of this information. You should not view this as an offer to buy or sell any security.
The tax treatment of your investment will depend on your individual circumstances and may change in the future. We do not provide tax advice.
Next Generation Pension involves investment 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 calculation is a forecast based on theoretical assumptions and does not give the right to complain.
You will bear all investment risk. Before you start saving with Next Generation Pension, familiarise yourself with the product's detailed information, terms and conditions, and investment strategy. Assess either by yourself or with the help of our consultants whether inflation, exchange rate fluctuations, changes in the market interest rate or any other events which do not depend on our intentions and actions may cause your savings to decrease. For more information about such financial instruments and risk factors, you can contact us at +372 665 5100 or by visiting any SEB branch.
Any disputes between us are settled by negotiations. If no agreement is reached these are being looked at in out-of-court dispute resolution entities with the procedure established by the legislation at the Estonian Financial Supervision and Resolution Authority (Sakala 4, Tallinn, more information at www.fi.ee) or in the courts of the Republic of Estonia.
