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Pillar 2 pension funds

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SEB Pensija life-cycle pension funds

The fund is chosen according to your year of birth and does not need to be changed until retirement. Life-cycle pension funds are unique in that their investment strategy changes as you approach retirement age, i.e. the share of risky investments is gradually reduced so that you can accumulate as much supplementary pension as possible without taking inappropriate risks and without having to change the fund over the entire accumulation period.

The service is provided by UAB SEB Investicijų Valdymas. The pension fund distributors are AB SEB Bankas and the Lithuanian branch of SEB Life and Pension Baltic SE.

The accumulation contribution is made up of two parts: if you choose maximum accumulation, the contribution will consist of 3% of your pre-tax salary and an incentive contribution from the state budget in the amount of 1.5% of the national average wage; if you choose gradual accumulation, the contribution this year will consist of 2.4% of your pre-tax salary and an incentive contribution in the amount of 0.9% of the national average wage (with the contributions gradually increasing every year until they reach 3% + 1.5% in 2023).
You do not need to worry about transferring contributions – they are administered by Sodra. Contributions are only paid for the periods during which you receive taxable income.
You have the option of accumulating more by paying additional contributions independently; you can also suspend the payment of contributions for 12 months if necessary.
The funds are accumulated in a personal pension account and invested in accordance with the pension fund's strategy. You can use them once you reach retirement age, or they can be inherited.

Pillar 2 pension benefits

When you reach retirement age (or are awarded an early old-age pension), you are entitled to use the funds accumulated in the pension funds. The method of payment will depend on the accumulated amount.

When you reach retirement age, you can choose not to take any action and continue to accumulate in the funds if you are still receiving taxable income or want to leave the funds as an inheritance, or you can apply to the pension company and conclude a pension benefit agreement.

Lump-sum payments are made for accumulations of EUR 5,000 or less.

For accumulations of EUR 5,001-9,999, the funds are divided in equal parts and paid out in periodic payments until the age of 85.

For accumulations of EUR 10,000 or more, you will acquire a Sodra pension annuity that will provide periodic guaranteed payments for the rest of your life.

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