What is changing in II pillar pension saving?

Rejoin earlier. People who have left the II pillar can now rejoin after just 5 years instead of the previous 10.

If you rejoin II pension pillar

 

  • More money for retirement: an opportunity to save more and increase your future pension
  • An opportunity to grow your pension savings through investment returns
  • The state adds 4% of social tax to your contributions. This amount is transferred to your personal pension account, where it is invested and has the potential to grow through investment returns
  • You can choose a contribution rate of 2%, 4% or 6%, helping you build up more pension savings
  • The money in your pension fund belongs to you and can be inherited.

If you rely only on the state pension

 

  • Your income after retirement may be less than half of your previous income
  • The first pension pillar is not an investment. The pension amount is adjusted annually, taking into account social tax revenues and changes in prices
  • The state pension is not accumulated in your personal pension account
  • In the long term, investing may offer higher returns than the indexation of the first pension pillar
  • The first-pillar pension is paid from the taxes of future workers. It is not personal pension assets that belong to you

 

SEB’s pension funds are managed by SEB Varahaldus. Every investment decision involves risk. Before making an investment decision, please read the pension fund’s prospectus, key information document and terms and conditions on the SEB website. If necessary, consult a professional or register for a consultation on SEB’s website seb.ee/en.