Savings for employees

Contribute to the greatest vacation of your employees’ lives!

Add to the arsenal of tools for long-term employee motivation. Take care of their future by contributing to their third-pillar pension funds.
The favourable tax environment means more economic benefits for the employee.
Simple administration – the agreement is concluded and managed by the employee, while the employer makes the payments.

EUR 100 for employee motivation

By giving the employee a raise:

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By contributing to an employee’s 3^rd pillar pension fund:

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Unlike salaries and bonuses, contributions to pension funds are non-taxable. This tax relief is valid provided that the contribution paid to the pension fund does not exceed 25% of the employment-related income calculated for the employee. When contributing to an employee’s third-pillar pension fund, 100% of the funds allocated to the employee reach the employee, and this amount is as much as 68% higher than in the case of a raise. Calculations are rounded up to euro.

More opportunities to motivate your employees. By contributing to accumulation in their 3^rd pillar pension funds, you will be taking care not only of their current needs, but also of their future.
Decisions about contributions are made by you. You can pay a regular contribution of a fixed amount or link it to the size of the employee’s salary or how long the employee has been with your organisation.
The manager of the agreement is the employee, so it is extremely easy for the employer to administer the payments.
- If the employee leaves the organisation or decides to stop saving, all you have to do is stop paying the contributions.
Get an incentive from the state. Contributions to employees’ 3^rd pillar pension funds are subject to corporate and personal income tax relief. More on this is available here.

Inform employees about the opportunity to conclude pension accumulation agreements with Swedbank. They can do this by following the steps via internet banking.
Get the pension savings account details from your employee.
Follow these instructions to make payments.

An example of saving with an employer in 3^rd pillar pension funds. Swedbank contributes to its employees’ 3^rd pillar pension funds.

If an employee decides to save in a third-pillar pension fund, Swedbank matches the contribution.

Employees gets twice the return on investment than they would if they saved without the employer.

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Personal contributions

Employer contributions

Fund investment return

Are you saving for the greatest vacation of your life? Your employer can contribute to saving for your future!

If you’re already saving for a 1^st or 2^nd pillar pension, the pension you will receive will not be more than about 45% of your monthly income.* This means that if you were to retire tomorrow, your income would be less than half of your current salary.
To maintain your normal lifestyle, your pension should be at least 70% of your current income. Ensuring this can be realistic if you conclude a 3^rd pillar pension accumulation agreement with Swedbank as early as possible.
By setting aside the chosen amount every month, your money will be invested, so you will have the opportunity to save more for your pension.
You don’t have to save for retirement alone!
Your employer can also contribute to your third-pillar pension fund savings.
Government incentive. You will be able to take advantage of the personal income tax relief and get back up to 20% of the contributions you paid in yourself. Learn more.

* Pillar 1 is state social insurance pension.

If you are already saving in Swedbank 3^rd pillar pension funds:

Agree with your employer on the size of its’ contribution.
Inform your employer where and how the contributions should be made.

If you are not already saving in Swedbank third-pillar pension funds:

First, conclude a 3^rd pillar pension accumulation agreement by following the steps via internet banking.
Follow the steps above.

Start saving

You are the manager of the third-pillar pension accumulation agreement.
You will make the decisions about changing the pension fund or adjusting the contribution, and you will have access to investment results and reports.

The funds accumulated in third-pillar pension funds belong to you.
- If you leave your job and payments stop, you will remain the owner of the funds accumulated in the 3^rd pillar pension fund. You will be able to become a sole contributor or to arrange payments to be taken over by your next employer.
- If something happens to you, the funds accumulated in your pension account will belong to your heirs.
- You will be able to withdraw part of the funds without termination of the savings/agreement. Please note that withdrawn funds are subject to taxation. More information is available here.
Funds are protected:
- The funds accumulated are accounted for in your personal pension fund account, where they are safe because they are separated from the assets of the company managing the pension funds and are kept in a depository.

Years left till pension age: 0

EUR

The following investment returns (after deductions and fund operating expenses) are used to calculate the projected accumulation: Pension Fund 18+ (limited redemption) – 6.1%, Pension Fund 50+ (limited redemption) – 4.1%, Pension Fund 60+ (limited redemption) – 2.1%, Pension Fund 18+ – 6%, Pension Fund 50+ – 4%, Pension Fund 60+ – 2%. If you decide to introduce another return, this return will be used in the calculation. All results are estimates only and the pension fund manager does not guarantee investment returns.

EUR

Estimated savings

Saving amount
0EUR
Contributions
0EUR
Amount of employer’s contributions
0EUR
Capital gain
0EUR
Tax pay-back (annual) If you accumulate additionallly for your pension you may use a personal income tax relief (PIT). You may be refunded up to 20% of your paid III pillar fund premiums annually.
0EUR

Regular funds - regular funds do not have limitations for agreement termination or partial withdrawal of funds.

Closed funds - when accumulating in Closed funds, one cannot terminate the agreement and/or perform a partial withdrawal of funds until 55 years of age.

Fee	Regular funds	Limited redemption funds	Fee application
Asset management fee	0,7%	0,6%	Fee applies from the average yearly value of funds.
Fee for changing pension savings company	0,5%	0,5%	Fee applies from the value of funds.
Contribution fee	0%	0%
Fee for withdrawing some funds	0%	0% You can withdraw part of the funds at the age of 55.	No tax applies. The minimum amount that can be withdrawn is EUR 100, with a minimum of EUR 300 remaining in the pension fund account after the partial withdrawal.
Agreement termination fee	0%	0% You can terminate the contract at the age of 55.	No tax applies.

Other factual operational costs of the funds are also covered with the assets of the fund:

0.055% from the fund’s average annual net asset value for the services of the depository;
the asset management company will cover other expenses of the fund (for example, audit, trade in securities), if these expenses exceed 0.75% of the fund’s average annual net asset value.

To encourage saving in third-pillar pension funds, the government offers tax incentives on contributions.

Employees who are saving in third-pillar pension funds can take advantage of the personal income tax relief. When filing their tax returns, employees can get back up to 20% of the contributions they paid themselves into third-pillar pension funds. Permanent residents of the Republic of Lithuania can recover personal income tax on up to EUR 1,500 paid into the fund as contributions. Thus, a maximum of EUR 300 can be recovered per year.
The maximum amount of contributions eligible for the personal income tax relief is the equivalent of 25% of the taxable income received by the person during the entire tax period.
Please note: The personal income tax relief does not apply to the part of the contributions paid by the employer.

The government encourages employers to contribute to employees’ savings for retirement. Contributions made by the employer to the employee’s pension fund account are not taxable.

You will save on corporate income tax – the government encourages the use of these tools; according to the Law on Corporate Income Tax (Article 17(1)), contributions are included in allowable deductions.
You will save on personal income tax – the contributions paid by the employer for the benefit of the employee are recognised as non-taxable personal income and are therefore not subject to personal income tax (20%) under Article 17 of the Republic of Lithuania Law on Personal Income Tax and are not used to calculate state social insurance contributions (Article 11(1)(19) of the Republic of Lithuania Law on State Social Insurance) or compulsory health insurance contributions (Article 17 of the Republic of Lithuania Law on Health Insurance), provided that the total amount of contributions paid during the tax year does not exceed 25% of the employee’s employment-related income.

The conditions for taxation of benefits apply to benefits if the pension accumulation agreement was concluded between 01.01.2013 and now:

Beneficiary’s age		More than 5 years from the age of 18 before retirement	Less than 5 years before retirement age, or the level of incapacity for work between 0 and 40% has been established
Period of the pension accumulation agreement		No impact on taxation	Less than 5 years	5 years and over
Used PIT relief for a specific fund or contributions were paid by the employer	the part of the benefit equals to the contributions paid	15%	15%	0%
	the part of the benefit in excess of the amount of contributions (profit)	15%	15%	0%
Did not use PIT relief for a specific fund and no contributions were paid by the employer	the part of the benefit equals to the contributions paid	0%	0%	0%
	the part of the benefit in excess of the amount of contributions (profit)	15%	15%	0%

Closed funds - when accumulating in Closed funds, one cannot terminate the agreement and/or perform a partial withdrawal of funds until 55 years of age.