Accumulation by age
Four pension funds with active and passive investment strategy tailored to participants according to their age group help to better maintain acceptable investment risk throughout the entire pension accumulation period.
For optimal return on investment, it is best to have a pension fund that invests in shares when you are younger, and then change it to a fund with more bonds and less shares as you approach retirement age so as to reduce short-term fluctuations in the value of your accumulated assets. You choose the fund yourself, and the fund's investments are managed by professional pension fund managers.
A pension account for independent saving and investing in the future
Lowest third-pillar pension fund management fees in Lithuania
Investments in accordance with high sustainable criteria and competitive return on investments
Service that is easy to manage in online banking
SEB Index. Climate Future
- Passively managed (index)
- Fund invests into funds that are closely following the movements of financial markets indices. It is understood that value of assets may fluctuate more and higher growth is expected over longer period of time
- Strong focus to sustainable investments supporting positive climate change
- Lowest fund management fee in the market
- Up to 100% of the fund assets are invested in global equities
SEB Pensija 18+
- Actively managed
- Short-term financial market fluctuations are acceptable
- It is understood that higher long-term stock market returns are associated with higher risk
- Up to 100% the fund's assets are invested in shares
SEB Pensija 50+
- Actively managed
- The aim is to increase the value of accumulated assets
- Average risk of stock market fluctuations is acceptable
- 40-60% of the fund's assets are invested in shares and the rest – in bonds
Age: over 58
SEB Pensija 58+
- Actively managed
- The aim is for the accumulated funds to be less dependent on financial market fluctuations
- Efforts are made to keep investment risk low
- 80-100% of the fund's assets are invested in bonds or other low-risk asset classes
Why should you accumulate supplementary pension?
Increasing life expectancy means that the number of future pensioners is growing at a faster rate than the share of the tax-paying population. The ageing of the population directly affects the level of the state-paid pension (Pillar 1), which is projected to be only 30% of previous earnings by 2040.
If you want to maintain your normal quality of life in retirement, you should make efforts to ensure that you will receive 70-80% of your previous earnings. You can achieve this by accumulating in all three pillars.
Long-term investments help accumulate more, since not only the paid-in contributions are invested, but also the returns received for them. The sooner you start and the longer you accumulate, the more you will build up and the easier it will be to achieve the desired result.
The state encourages the accumulation of pensions. When accumulating in second-pillar funds, the contribution from the state budget is more than EUR 235 per year, and those accumulating in third-pillar funds can recover up to EUR 300 in personal income tax annually.
The state encourages independent accumulation by offering personal income tax relief – those who do so can recover up to EUR 300 annually.
The maximum amount of contributions that can be deducted cannot exceed 25% of the taxable income you have received over the entire tax period (Article 21(1) of the Law on Personal Income Tax).
Permanent residents of the Republic of Lithuania can recover PIT on contributions of up to EUR 1,500 paid under unit-linked life insurance contracts and to pension funds.
The tax relief is calculated on the basis of that part of the person's taxable income that was subject to the 15%, 20% or 27% PIT rate.
Pillar 3 pension benefits
You become entitled to a pension benefit once you are five years within the established age for old-age pension. You choose the method of disbursing the accumulated funds yourself.
You can select either a lump-sum payment or periodic payments in the amount of your choice.
Two years after the commencement of the agreement, you also have the option of withdrawing part of the funds without terminating the agreement, as long as you leave an accumulated amount of at least EUR 500.
The third-pillar pension funds are managed by UAB SEB Investicijų Valdymas.
This information is of a promotional nature and may not be construed as a personal recommendation, instruction or invitation to accumulate funds in the pension funds mentioned here, and may not be the basis or part of any subsequent transaction. Although the content is based on sources that are considered reliable, SEB Bank, the Lithuanian branch of SEB Life and Pension Baltic SE and UAB SEB Investicijų Valdymas are not responsible for any inaccuracies or losses that may occur if investment decisions are made on the basis of this information.
The pension accumulation company does not guarantee the profitability of the pension funds. By accumulating funds in a third-pillar pension fund, you are assuming the risk of return on investment. Future results may differ from previous results. The value of an investment can go up or down. You may get back less than you have invested.
You are responsible for your investment decisions, so before taking them, you should read the detailed information as well as the investment strategy and rules of the selected pension fund, and, on your own or with the help of consultants, assess the risk that in the event of inflation, changes in exchange rates or market interest rates, or certain events beyond the control of SEB Investicijų Valdymas, the value of your investment may decrease.
Administration fees are charged for pension accumulation. Information on the fees applied by all pension accumulation companies is available on the Bank of Lithuania website.