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Disbursements from the second pension pillar

The money accumulated in the second pension pillar can be withdrawn by people who have reached retirement age. In order to receive payments from the funded pension, an application must be submitted at an SEB branch or in the Internet Bank (in case of a single payment or funded pension) or a contract signed at a branch (in case of a pension contract).

One-off payout

If the amount of money saved remains below ten times the national pension rate, the unit-holder can withdraw the money saved in their pension funds as a one-off payment. People who wish to do so have to fill in a one-off payout application in the Internet Bank or visit a branch of the bank.
You have to be certain that this is what you want to do, as the application cannot be changed or withdrawn.

  • The payout is transferred to the current account indicated in your application in the second half of the month following the month when the application was submitted.
  • You cannot rejoin the second pension pillar after the one-off payout has been made.

Funded pension

You can withdraw the money you have saved in the second pension pillar in regular payouts from the pension fund if the amount of your pension savings is up to 50 times the national pension rate.

Submit an application for receipt of regular payouts in the Internet Bank or at a branch if you would like to receive a funded pension.

In addition to providing the number of your current account, please also select the frequency of your pension payments and the length of the period over which you wish to receive them. The minimum period depends on your age and is determined in the Funded Pensions Act.

The amount of a pension payout depends on the period and frequency of payouts and the number of units accumulated.

Changing your funded pension
You can change the terms and conditions of your pension payouts. In order to change the terms, first terminate the existing funded pension. After that submit a new application for funded pension.

You can also stop payouts from your funded pension. This means that the units will stay in the pension fund until you make a new decision.

Pension contract

Pension contract is the life insurance product on the basis of which annuity payouts are made to pensioners. This means that the agreed pension payments are guaranteed to you until the end of your life.
Pension contract is meant for people who have saved more than 50 times the national pension rate in their funds.

The frequency that can be selected for the payouts is either a month or a quarter.

Guarantee period is an additional option offered by the pension contract. If the person who entered into the pension contract dies during the guarantee period, the beneficiary (or beneficiaries) specified in the pension contract will receive pension payments until the end of the guarantee period. No limitations are applied to the length of the guarantee period: you can select the period when you enter into the contract.

  • Policyholders can withdraw from the contract within 14 days or they can change their decisions as necessary.
  • Pension contracts can be cancelled after three years have passed from the time they were entered into. The insurer will calculate the surrender value of the insurance contract when a pension contract is cancelled. The surrender value is not paid out to the policyholder but transferred to the insurer who entered into the contract as an insurance premium for the new pension contract.

Register for a free consultation or call us on 665 5100 if you have any questions.

Terms and Conditions


Taxation of payouts from the second pension pillar

Pension payouts are subject to income tax according to the legislation of the Republic of Estonia. Income tax is calculated on the basis of the tax-exempt rate applicable to individuals.

Starting from 1 January 2018, basic exemption of a person is €500 per month or €6,000 per year.

All taxable disbursements increase the yearly income, on the basis of which basic exemption is calculated. Therefore, starting from 2018, disbursements from the second pension pillar may decrease basic exemption. If this is not taken into account when paying taxes throughout the year, the person must pay additional income tax for the decrease in basic exemption.


Legislation governing the tax system may change. Taxation depends on individual circumstances relating to a client, including their residence, etc.
SEB pension funds are managed by AS SEB Varahaldus. 3rd pension pillar insurance products are provided by AS SEB Elu- ja Pensionikindlustus.
Before making an investment decision, you are invited to carefully review the terms and conditions of the insurance contract and/or the public offer prospectus for the pension fund units, its simplified prospectus and any other information published about the fund available on the website of the Pension Centre or, concerning SEB products, on the SEB website. If needed, consult a representative of AS SEB Pank or AS SEB Elu- ja Pensionikindlustus.

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