My pension

Please note that the calculator provides preliminary results that can differ from the actual situation in the future.

The customer specifies the amount they want to receive upon retirement in today’s monetary value. Next to this and in the diagram, the amount is shown in terms of future value.

The current value of money shows how much can be purchased with a certain amount of money today.

The future value of money shows how much the current amount of money will be worth in the future.

The desired and projected pension amount in the calculator is indicated in future value terms.

The customer indicates their salary after taxes.

It is recommended to save for pension approximately 70% of income received prior to retirement.

Common assumptions

1. The person will work continuously until retirement age and will always pay pension contributions, and upon reaching retirement age will immediately start receiving pension benefits or choose one of the annuities.
2. The person will always pay contributions of 3% of their salary (before taxes) and will receive a state incentive contribution of 1.5%, calculated on the basis of the national average wage (before taxes).
3. The salary indicated by the person will grow at the same rate as the average wage in the country.
4. The salary specified by the individual will increase by 4% each year until retirement age.
5. Changes in the average wage are based on short-term forecasts by the Ministry of Finance of the Republic of Lithuania and long-term forecasts by the European Commission.
6. The funds being accumulated and those already accumulated in the person’s pension fund are invested according to the life-cycle fund principle, i.e. the ratio of higher-risk and lower-risk assets changes depending on the time remaining until retirement, in line with the Swedbank’s chosen glide path for reducing higher-risk assets.
7. The projected return is 3% per year for bonds and 7% per year for equities.
8. The maximum pension fund fees established in the Law on Pension Accumulation, amounting to 0.5% of assets under management, are applied. These fees reduce the person’s investment return, which is calculated as specified in the assumptions (points 5, 6, 8).
9. The average projected return over the entire accumulation period is calculated as the average of the annual returns, because as the person ages and the ratio of higher-risk and lower-risk assets changes, the projected return for each year also changes.
10. When calculating the expected benefit (annuity), it is assumed that a standard annuity is purchased with all the funds accumulated in the pension fund upon reaching retirement age, even if under the legal requirements purchasing an annuity would not be mandatory for the accumulated amount.
11. To calculate the annuity benefit, the current Sodra annuity methodology is used.
12. The projected benefit from the funds accumulated in the pension fund is presented in future value terms (in the year of retirement).
13. The following investment returns (after deductions and operating expenses of the fund) are used to calculate the estimated accrual in the 3rd pillar: 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%, unless the person chooses otherwise.
14. The calculator shows continuous transfer of the selected contribution amount into the pension fund every month until the person turns 65.
15. It is calculated that about 25% of pre-retirement income needs to be accumulated in the 3rd pillar in order to receive the projected pension.
16. When entering data, the calculator does not include the amount accumulated under the investment life insurance contract, the Safe Pension Fund. The amount can be entered together with the accumulated amount.
17. The recommendations apply only for accumulation in 3rd pillar pension funds.

The customers are recommended to periodically review whether the accumulated amount meets their expectations.

When accumulating in pension funds, an investment risk is assumed and there is no guarantee that investment value will increase. Past performance is no guarantee of future results.

The pension fund manager, Swedbank investicijų valdymas UAB, together with Swedbank Robur Fonder AB in Sweden, aims to achieve good performance from the funds.

The accumulated funds are held in the customer’s personal pension fund account. They are segregated from the assets of the company managing the pension funds and are stored in a depository (Swedbank AB, company code: 112029651, address: Konstitucijos pr. 20 A, Vilnius).