Swedbank pension

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.

• 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).
• 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.
• Swedbank pension funds invest following the responsible investment policy.
• Pension funds‘ assets are separated from the assets of the pension fund management company and are kept in a depository „Swedbank“, AB (Konstitucijos pr. 20A, Vilnius, Lietuva).

Your contribution to the pension fund includes:

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

For those, who accumulated at a minimum rate, the contributions increased gradually until 2023 when it reached the maximum rate (3%+1.5%).

1. Choose a life-cycle fund.
2. Conclude the Swedbank pension agreement.

That’s it – you will start accumulating in your personal pension fund account.

Important! If you conclude a pension accumulation agreement for the first time, you will be able to unilaterally terminate it within 30 days from its conclusion by submitting an application on the Internet Bank or at the bank’s branch. Afterwards, you will not be able to terminate it.

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. Choose a life-cycle fund.
2. Conclude the Swedbank pension agreement.

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 of 0.05 per cent applies to switching a pension accumulation company. For example, if you have accumulated EUR 1000, the switching fee will be EUR 0.5.

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.

The retirement age is gradually being extended until it reaches 65 in 2026. You can check your retirement date in the calculator here.

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 +370 5 268 4444 or 1884.

By choosing to accumulate in Swedbank’s pension funds, you contribute to the promotion and growth of sustainable businesses. The funds invested have a positive impact on the environment, human health and contribute to other United Nations Sustainable Development Goals. Investing in a sustainable business is also likely to have a higher return on investment.

• Higher expected return on investment. Based on our estimates*, the decision to redirect even more pension funds to sustainable businesses earned an additional EUR 40 million return on investment for customers in 2021. Enterprises that focus more on sustainability gain a full competitive advantage, i.e. their goods and services are more favoured by consumers, and it becomes easier for such enterprises to attract new investments.
• Your positive impact on reducing climate change and air pollution. We have calculated that the CO2 emissions of the companies that make up the investment portfolio of our funds have decreased four times** as we have invested the assets of these funds in companies that meet the sustainability criteria.

* Comparative analysis was based on the data of Swedbank and Bloomberg. The additional amount earned was estimated by calculating the difference between Swedbank’s tier II pension fund return in euros and the theoretical return ratio. The latter was obtained by multiplying the value of our investments by the weighted return earned by the equity funds that invest based on the traditional criteria.

** From 205 tons of CO2 per million USD of revenue in 2019 down to 49 tons of CO2 per million USD of revenue in 2021.

1. Investment opportunities: By optimizing the composition of our fund portfolios, we include sustainability risks in investment decisions. For example, we choose to invest in financial instruments that meet the sustainability criteria, contribute to climate change mitigation and help achieve the United Nations Sustainable Development Goals.
2. Participation in operations: We cooperate with companies where we directly manage larger holdings, where sustainability risks are particularly high or where there are opportunities to set higher sustainability goals. Such participation includes, for example, voting at shareholders' meetings and continuous cooperation with the Board or the Management of the Company.
3. We do not invest in certain areas, such as tobacco, alcohol, fossil fuels, weapon industries, companies that create content for adults.