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Second pension pillar

Second pension pillar

Save part of your salary for pension

  • You can build up additional savings in a selected pension fund
  • Money transferred to the pension fund is invested, so gains are likely
  • Once you reach your retirement age, you will have two sources for the pension

Contributions paid to the second-pillar pension fund of your choice would be invested throughout the duration of the agreement. Therefore, you could expect a return on investment under favourable conditions. Once you reach your retirement age, you would have two sources for the pension — Sodra (a portion of state social insurance contributions would be transferred to the pension fund and the Sodra pension would be reduced proportionally) and the pension fund.

Every person under the retirement age covered by state social insurance (for the basic and additional portion of pension) as well as persons entitled to transfer pension rights from the pension system of institutions of the European Union under the Law on the Retention and Transfer of Pension Rights of Officials of the Institutions of the European Union and of Members of the European Parliament can build up additional pension savings in second-pillar pension funds.

Additional pension savings in second-pillar pension funds are built up from:

  • the main contribution transferred by Sodra: a contribution whose amount is prescribed by law and calculated on taxes paid to Sodra is transferred to the pension fund (2.5% of a member's income subject to state social insurance contributions in 2013, 2% in 2014–2019, 3.5% in 2020 and onwards)
  • additional contributions whose amount is prescribed by law paid voluntarily by a member to the pension fund. It should be noted that payment of these contributions will reduce net income of the member. From 1 January 2014, the additional pension contribution voluntarily paid by the member is equal to 1% of the member's income subject to state social insurance contributions. From 1 January 2016, this percentage will be raised to 2%
  • additional contributions whose amount is prescribed by law paid from the state budget (1% of the average wage in Lithuania in 2014 and 2015 and 2% from 2016)

The amount of savings in second-pillar pension funds depends on the amount of contributions paid to these funds, duration of pension savings buildup and return on investment. Every member of the second pillar of the pension system has his or her own pension savings account.

For more information about Second pension pillar, you can call a 24/7 line at +370 5 268 2800 or visit a SEB bank unit of your choice.


Administration fees are charged for pension savings. Information about the fees charged by all pension savings companies is provided on the following page of the website of the Bank of Lithuania.

The pension savings company does not guarantee the profitability of pension funds. Past performance is not indicative of future results. Investments may both rise and fall in value. You may gain less than originally invested.

The state social insurance old-age pension for members of the second pillar of the pension system who conclude pension savings agreements is reduced proportionally according to the procedure laid down in the Law on State Social Insurance Pensions.

Please note that the concluded second-pillar pension savings agreement cannot be terminated, except where a member is entitled to unilaterally terminate the agreement concluded for the first time within 30 calendar days of its conclusion notifying the pension company thereof in writing.

1. You have to come to a SEB bank unit where you will conclude an agreement and choose your pension  fund.

Once you conclude a pension savings agreement, we will help you choose one of the three second-pillar pension funds to which Sodra will have to pay pension contributions.

Pension contributions from Sodra will be made on the first day of the third month (from the month of registration of this agreement in the Register of Pension Savings Agreements of the Republic of Lithuania). For instance, if a pension savings agreement is registered on 15 January 2018, it enters into force on 1 March 2018 and the first contribution will be made by Sodra in the middle of May for the insured income for March.

The concluded second-pillar pension savings agreement cannot be terminated, except where a member is entitled to unilaterally terminate the agreement concluded for the first time within 30 calendar days of its conclusion notifying the pension company thereof in writing.

Before making a decision to conclude a pension savings agreement, compare the investments risks of pension funds managed by UAB "SEB investicijų valdymas" and read the rules of SEB Pensija pension funds which contain an in-depth description of the nature of the service and characteristic risks.

2. Contributions from Sodra will be paid monthly to the selected pension fund.

Every month, Sodra will transfer a contribution of the required amount to your pension savings account. The contribution paid by Sodra is made up of:

  • portion of state social pension insurance contribution
  • additional pension contribution paid voluntarily by you
  • additional pension contribution paid from the state budget for you

These contributions are kept in your personal pension account.

From 2014, pension contributions at a rate of 2% of national average wages (calculated on the average gross wages of workers of the national economy during four quarters of the year before last year) will be paid from the state budget to the pension fund for one of the parents raising a child under three years of age and receiving a maternity (paternity) benefit or having a state social insurance cover. Pension contributions will be paid for every child under the age of three.

The state social insurance old-age pension for members of the second pillar of the pension system who conclude pension savings agreements is reduced proportionally according to the procedure laid down in the Law on State Social Insurance Pensions

3. Transferred money will be invested and saved until you become entitled to a pension benefit.

Administration fees are charged for pension savings in a fund. Savings in a pension fund are invested even when taxes are no longer paid to Sodra: for instance, due to loss of employment, sickness, suspension of pension buildup or for other reasons. Once employment is resumed and insured income is received or transfers of pension contributions are resumed, Sodra contributions are again transferred to the second-pillar pension fund.

4. Once you reach your retirement age, you will have two sources for the pension.

Once you reach the retirement age or at an earlier time, if an early state social insurance old-age pension is granted to you, you will have two sources for the pension: Sodra (a portion of state social insurance contributions is transferred to the pension fund and the Sodra old-age pension is reduced proportionally) and the pension fund.

For more information about Second pension pillar, you can call a 24/7 line at +370 5 268 2800 or visit a SEB bank unit of your choice.


Administration fees are charged for pension savings. Information about the fees charged by all pension savings companies is provided on the following page of the website of the Bank of Lithuania.

The pension savings company does not guarantee the profitability of pension funds. Past performance is not indicative of future results. Investments may both rise and fall in value. You may gain less than originally invested.

The state social insurance old-age pension for members of the second pillar of the pension system who conclude pension savings agreements is reduced proportionally according to the procedure laid down in the Law on State Social Insurance Pensions.

Please note that the concluded second-pillar pension savings agreement cannot be terminated, except where a member is entitled to unilaterally terminate the agreement concluded for the first time within 30 calendar days of its conclusion notifying the pension company thereof in writing.

Choose a suitable pension fund

Your current age



"SEB pensija  1"

As less than 7 years remain until your retirement, we recommend you this conservative investment fund.

  • The Fund is aiming to hedge against currency depreciation.
  • Accumulated funds and return on investment will be hedged.
  • It is expected that return on the Fund unit will be low due to minor fluctuations in value.

Learn more


“SEB pensija 2”

As more than 7 years remain until your retirement, we recommend you this medium equities investment strategy fund.

  • Investments in this Fund ensures more stable return on investment.
  • Fluctuation in value of this Fund unit and expected return in medium-term are average.

Learn more


“SEB pensija 3”

As more than 15 years remain until your retirement, we recommend you this equities investment strategy fund.

  • Return on long-term investments in this Fund may be higher than average return on investment.
  • Fluctuation in value of this Fund unit within the long-term is higher than average.

Learn more

Compare with other SEB pension funds


Administration fees are charged for pension savings. Information about the fees charged by all pension savings companies is provided on the following page of the website of the Bank of Lithuania.

The pension savings company does not guarantee the profitability of pension funds. Past performance is not indicative of future results. Investments may both rise and fall in value. You may gain less than originally invested.

The state social insurance old-age pension for members of the second pillar of the pension system who conclude pension savings agreements is reduced proportionally according to the procedure laid down in the Law on State Social Insurance Pensions.

Please note that the concluded second-pillar pension savings agreement cannot be terminated, except where a member is entitled to unilaterally terminate the agreement concluded for the first time within 30 calendar days of its conclusion notifying the pension company thereof in writing.

Why build up savings in a second-pillar pension fund?

Risk diversification: your Sodra pension depends on taxes paid by employed people and the number of recipients of pensions, while pension savings in second-pillar pension funds depend on the amount of contributions transfer to these funds, duration of pension buildup and investment return of funds.

Probability of higher pension. However, we would like to point out that the management company cannot guarantee the yields of pension funds. If the results of one year are excellent, it does not mean that performance in the next year will be the same. Investments may both rise and fall in value. You may gain less than originally invested.

Continuous investment of savings in a pension fund even when pension contributions are no longer paid, for instance, due to loss of employment, sickness, suspension of pension buildup in the pension fund between 1 April 2013 and 1 September 2013 or for other reasons. Once employment is resumed and insured income is received or transfers of pension contributions are resumed, Sodra contributions are again transferred to the second-pillar pension fund.

Lower agreement administration fees, which means that a larger share of the pension contribution goes to pension savings.

State support to parents raising small children: from 2014, pension contributions at a rate of 2% of national average wages (calculated on the average gross wages of workers of the national economy during four quarters of the year before last year) will be paid from the state budget to the pension fund for one of the parents raising a child under three years of age and receiving a maternity (paternity) benefit or having a state social insurance cover. Pension contributions will be paid for every child under the age of three.

Possibility to change a pension company at any time if there are savings in the personal pension account of the member.

Possibility to receive the benefit from pension funds prematurely if the member is granted an early state social insurance old-age pension.

Continued entitlement to social benefits paid by Sodra such as sickness, maternity, etc. benefits.

Savings held in a pension fund are inherited. If you pass away, your savings will be paid out to your relatives or other heirs appointed by.

Several sources for your pension: Sodra and a pension fund.

For more information about Second pension pillar, you can call a 24/7 line at +370 5 268 2800 or visit a SEB bank unit of your choice.


Administration fees are charged for pension savings. Information about the fees charged by all pension savings companies is provided on the following page of the website of the Bank of Lithuania.

The pension savings company does not guarantee the profitability of pension funds. Past performance is not indicative of future results. Investments may both rise and fall in value. You may gain less than originally invested.

The state social insurance old-age pension for members of the second pillar of the pension system who conclude pension savings agreements is reduced proportionally according to the procedure laid down in the Law on State Social Insurance Pensions.

Please note that the concluded second-pillar pension savings agreement cannot be terminated, except where a member is entitled to unilaterally terminate the agreement concluded for the first time within 30 calendar days of its conclusion notifying the pension company thereof in writing.

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