Swedbank pension

Pension (2nd Pillar)

Start accumulating now to receive higher income in old age

Swedbank pension is your first step towards a bigger pension. The earlier you start, the more you will accumulate. Why should you choose us for pension accumulation?

  • Almost 40 per cent of all Lithuanians who accumulate pension in the pillar II pension funds have chosen Swedbank.
  • From 2004 to June 2020 Swedbank pension funds generated over EUR 309 million for the customers.
  • In order to ensure a stable and profitable return for you, we invest in sustainable business.
Start accumulating

Swedbank pension provides a possibility to accumulate additional funds in pillar II pension funds and later receive the retirement income from two sources: Sodra and your pension fund.

Accumulation is simple because you will choose the suitable fund according to your birth year and will be able to accumulate in it until your pensionable age.

A contribution to your personal pension fund account will be comprised of two parts: a contribution calculated from your salary (gross) and an incentive contribution from the state budget calculated from the average national wages.

Calculation of these contributions and transfer thereof to pension funds is administered by Sodra, thus you don’t have to worry about it. You will always be able to check the amount of accumulated funds having logged in to the Internet Bank.

  • The Sodra old-age pension will not decrease because of the accumulation in pillar II pension funds.
  • Your accumulated funds are inheritable (until they are paid out). In the event of your death, your family members or other heirs designated by you will receive the accumulated funds.
  • Having concluded the Swedbank pension accumulation agreement, you will not be able to terminate the accumulation of pension, except for the termination of the first agreement on pension accumulation in pillar II. You can unilaterally terminate the agreement by submitting the application within 30 calendar days from the conclusion of the agreement.
  • By accumulating in pension funds, you assume the investment risk and there are no guarantees that the value of investment will grow. The results achieved in the past do not guarantee future results.
  • More detailed information is available in the Rules of the Pension Fund and the Investment Strategy Document.
  • Administration fees apply to pension accumulation.

The amount of a contribution to your pension fund depends on your chosen accumulation model – minimum or maximum accumulation.

If you opt for maximum accumulation, your contribution to the pension fund will include:

  • A 3% contribution calculated from your salary (gross);
  • A 1.5% incentive contribution from the state budget calculated from the gross average national wages*.

The amounts of contributions will gradually increase for those who have chosen minimum accumulation in the coming three years:

You can opt for maximum accumulation and increase your contribution to pillar II pensions funds already now on the Internet Bank or in any Swedbank’s branch.

* An incentive contribution from the state budget is calculated from the gross monthly national wages according to the official data of the Statistics Lithuania on the average wages of the year before last.

No worries

Having chosen a fund according to your birth year once, you will be able to accumulate in it until your pensionable age.

It is easy to start

You can start accumulating in pillar II pension funds or switch to Swedbank from another pension accumulation company without leaving home – all you have to do is to log in to the Internet Bank.

Life-cycle pension funds are balanced target group pension funds where investments are dynamically changed according to your age. The younger you are, the bigger share is invested in equity markets in order to get a bigger return on investment. As you are approaching the pensionable age, the share of equity in the fund (and the risk) gradually decreases, whereas the share of bonds and other more secure investment instruments (deposits, cash) increases in order to secure accumulated funds.

List of GC funds

You were born in 1996–2002 (inclusive).

  • The investment risk of the fund is gradually reduced with regard to the age of the participants of the fund. The aim of the fund is to accumulate maximum amount of the pension assets before the retirement date.
  • The strategic share of risk assets (for example, market shares, alternative investments) is dynamically reduced down from 90% at the beginning of the accumulation period to 15% at the end of the accumulation period, thus achieving the optimum investment results throughout the whole accumulation period.
  • Bearing in mind the situation in the financial markets and its prospects, the share of risk assets can be increased or reduced within a 10% limit. At the beginning of the accumulation the share of risk assets may vary from 80% to 100%, and at the end of the accumulation period – from 5% to 25%.
Pension funds results

Documents

You were born in 1989–1995 (inclusive).

  • The investment risk of the fund is gradually reduced with regard to the age of the participants of the fund. The aim of the fund is to accumulate maximum amount of the pension assets before the retirement date.
  • The strategic share of risk assets (for example, market shares, alternative investments) is dynamically reduced down from 90% at the beginning of the accumulation period to 15% at the end of the accumulation period, thus achieving the optimum investment results throughout the whole accumulation period.
  • Bearing in mind the situation in the financial markets and its prospects, the share of risk assets can be increased or reduced within a 10% limit. At the beginning of the accumulation the share of risk assets may vary from 80% to 100%, and at the end of the accumulation period – from 5% to 25%.
Pension funds results

Documents

You were born in 1982–1988 (inclusive).

In 2019, the IPE (Investments & Pensions Europe) magazine ranked Swedbank’s life-cycle fund “Pension 1982–1988” among the top three pension funds of Central and Eastern Europe.

  • The investment risk of the fund is gradually reduced with regard to the age of the participants of the fund. The aim of the fund is to accumulate maximum amount of the pension assets before the retirement date.
  • The strategic share of risk assets (for example, market shares, alternative investments) is dynamically reduced down from 90% at the beginning of the accumulation period to 15% at the end of the accumulation period, thus achieving the optimum investment results throughout the whole accumulation period.
  • Bearing in mind the situation in the financial markets and its prospects, the share of risk assets can be increased or reduced within a 10% limit. At the beginning of the accumulation the share of risk assets may vary from 80% to 100%, and at the end of the accumulation period – from 5% to 25%.
Pension funds results

Documents

You were born in 1975–1981 (inclusive).

  • The investment risk of the fund is gradually reduced with regard to the age of the participants of the fund. The aim of the fund is to accumulate maximum amount of the pension assets before the retirement date.
  • The strategic share of risk assets (for example, market shares, alternative investments) is dynamically reduced down from 90% at the beginning of the accumulation period to 15% at the end of the accumulation period, thus achieving the optimum investment results throughout the whole accumulation period.
  • Bearing in mind the situation in the financial markets and its prospects, the share of risk assets can be increased or reduced within a 10% limit. At the beginning of the accumulation the share of risk assets may vary from 80% to 100%, and at the end of the accumulation period – from 5% to 25%.
Pension funds results

Documents

You were born in 1968–1974 (inclusive).

  • The investment risk of the fund is gradually reduced with regard to the age of the participants of the fund. The aim of the fund is to accumulate maximum amount of the pension assets before the retirement date.
  • The strategic share of risk assets (for example, market shares, alternative investments) is dynamically reduced down from 90% at the beginning of the accumulation period to 15% at the end of the accumulation period, thus achieving the optimum investment results throughout the whole accumulation period.
  • Bearing in mind the situation in the financial markets and its prospects, the share of risk assets can be increased or reduced within a 10% limit. At the beginning of the accumulation the share of risk assets may vary from 80% to 100%, and at the end of the accumulation period – from 5% to 25%.
Pension funds results

Documents

You were born in 1961–1967 (inclusive).

  • The investment risk of the fund is gradually reduced with regard to the age of the participants of the fund. The aim of the fund is to accumulate maximum amount of the pension assets before the retirement date.
  • The strategic share of risk assets (for example, market shares, alternative investments) is dynamically reduced down from 60% in 2019 to 15% at the end of the accumulation period, thus achieving the optimum investment results throughout the whole accumulation period.
  • Bearing in mind the situation in the financial markets and its prospects, the share of risk assets can be increased or reduced within a 10% limit. In 2019 the share of risk assets may vary from 50% to 70%, and at the end of the accumulation period – from 5% to 25%.
Pension funds results

Documents

You were born in 1954–1960 (inclusive).

  • The investment risk of the fund is gradually reduced with regard to the age of the participants of the fund. The aim of the fund is to accumulate maximum amount of the pension assets before the retirement date.
  • The strategic share of risk assets (for example, market shares, alternative investments) is dynamically reduced down from 25% in 2019 to 15% in 2022, thus achieving the optimum investment results throughout the whole accumulation period.
  • Bearing in mind the situation in the financial markets and its prospects, the share of risk assets can be increased or reduced within a 10% limit. In 2019 the share of risk assets may vary from 15% to 35%, and at the end of the accumulation period – from 5% to 25%.
Pension funds results

Documents

Documents

You were born before 1954.

  • The aim of the fund is to ensure the maximum protection of the participants’ accumulated assets from significant changes in unit values of pension funds and the risk of inflation.
  • The investment strategy does not depend on the age of participants.
  • Not less than 50% of the fund’s assets are invested into government bonds and deposits, up to 30% of the assets the fund may invest into corporate bonds, and up to 20% – into share markets.
Pension funds results
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Pension fund manager UAB Swedbank investicijų valdymas together with AB Swedbank Robur Fonder, operating in Sweden, have been seeking good fund performance.

  1. Log in to your Internet Bank and choose a life-cycle fund according to your birth year.
  2. Conclude the Swedbank pension agreement.
  3. That’s it – you will start accumulating in your personal pension fund account.

You can start accumulating with maximum contribution right away – pay 3 per cent of your salary and get a 1.5 per cent incentive contribution from the state budget before 2023.

Important: Please note that having concluded the Swedbank pension accumulation agreement, you will not be able to terminate the accumulation of pension, except for the termination of the first agreement on pension accumulation in pillar II. You can unilaterally terminate the agreement by submitting the application within 30 calendar days from the conclusion of the agreement.

Start accumulating

Switching a pension company and executing the transition from another company is simple. You can do this by logging in to Swedbank’s Internet Bank:

  1. se a life-cycle fund according to your birth year.
  2. Conclude the Swedbank pension agreement.
  3. That’s it – your accumulated amount will be transferred to your personal pension account in the Swedbank pension fund within several days.

Important: A company switching fee applies to switching a pension accumulation company. The fee is only 0.05% of already accumulated amount, e.g. if you have accumulated EUR 1000 and want to switch to Swedbank, you will be charged a fee of EUR 0.50.

Formalise the transition

In the Internet Bank you can always check on the quantity of the contributions transferred and the amount accumulated, monitor the profitability of the pension funds or view the annual report about the funds accumulated in your pension account.

The right to receive a pension payout is granted to you upon reaching a retirement age or if you are awarded an early state social insurance retirement pension.

Currently, the retirement age for women is 63 years, and for men – 64 years.

The retirement age calculator can be found here.

The accumulated funds may be paid in one of the following ways:

  • a single payout, if the accumulated amount is up to EUR 5000;
  • a regular pension payout (by instalments), if the accumulated amount is EUR 5000–10 000;
  • by acquiring a pension annuity (monthly pension payouts for life), if the accumulated amount is over EUR 10 000.

You will have to apply to the bank regarding the conclusion of a pension payout agreement. You will be able to do this by coming to the nearest Swedbank’s branch. You must necessarily book a visit online or by calling 1884.

Please find the conditions for the payment method applicable to you according to your accumulated amount in the table below:

Up to EUR 5000
Single payout

First, you will have to submit a payout application upon coming to any Swedbank’s branch. There you will sign the payout agreement and the entire accumulated amount will be transferred to your bank account.

EUR 5000–10 000
Regular payouts

First, you will have to submit a payout application upon coming to the nearest Swedbank’s branch.

The accumulated amount will be paid by instalments until you reach the age of 85 years. Payments will be made on a monthly or quarterly basis. The amount of a regular payout will be calculated in pension fund units that will be periodically converted to money and paid to your indicated account. The amount of a regular payout in euros may change – both increase and decrease, depending on the fund unit value. While units will be periodically converted to money, the quantity of units will decrease in your pension account; however, the remaining unpaid funds i the fund will be further invested. In the event of your death, the funds will be inherited by the specified heirs.

Over EUR 10 000
Pension annuity

A pension annuity will secure regular payouts for life.

You may acquire a pension annuity by submitting an application to Sodra:

  • in any Sodra’s resident service office or having logged in to the webpage gyventojai.sodra.lt;
  • in any Swedbank’s branch.

Before applying, choose one of the annuity types offered by Sodra: standard, standard with a guarantee or deferred. You may find further information on annuity types and calculations having logged in to Sodra’s webpage here.

In accordance with the current legislation, acquisition of a pension annuity is mandatory, if the accumulated amount exceeds EUR 10 000. If an annuity is acquired, Sodra will make payouts.

Over EUR 60 000

If you accumulate over EUR 60 000, payment will be twofold.

For EUR 60 000, you will have to acquire an annuity, and the remaining amount will be paid to you as a single payout or regular payouts.

Information on the characteristics and risks of types of pension benefits

Pension fund

Property management fee*

Management enterprise switching fee*

Pension 1996-2002 0,65 % 0,05 %
Pension 1989-1995 0,65 % 0,05 %
Pension 1982-1988 0,65 % 0,05 %
Pension 1975-1981 0,65 % 0,05 %
Pension 1968-1974 0,65 % 0,05 %
Pension 1968-1974 0,65 % 0,05 %
Pension 1954-1960 0,65 % 0,05 %
Asset preservation pension fund 0,2 % 0,05 %

The fund switching fee within the management enterprise is free of charge in all “Swedbank” pension funds.

* The annual fee is calculated for each working day from the average annual value of the funds accumulated in the fund, thus reducing the value of the pension fund units. In life cycle pension funds, this contribution will not exceed 0.5% in 2021 and when the assets of pension funds reach EUR 2.5 billion, it will not exceed 0.4%.

** Calculated from the value of accumulated funds transferred to another pension fund enterprise.

More detailed information is available in the Rules of the Pension Fund and the Investment Strategy Document.

This is a way to accumulate an additional pension for yourself and to have a guaranteed financially secure old age.

Invest in your child’s future right now – sign a contract in internet bank and accumulate funds for Your child‘s studies or for the beginning of his independent life.