Swedbank pension

Pension (2nd Pillar)

Start saving for your future now! Conclude a pension accumulation agreement using our online banking system to receive higher income in old age.

Swedbank pension is the first step toward a larger pension.

  • The earlier you start, the more you will accumulate.
  • Accumulated funds are invested, therefore, it is probable that you will receive a return on investment and the accumulated amount will be larger than your payments.
  • You are the owner of the accumulated funds and the funds are inheritable.
  • In pursuance of a stable and competitive investment return to participants of the pension funds, we invest into sustainable business.
If you are already accumulating with “Swedbank” pension and you wish to review the agreement information or submit applications, login.
  • You can accumulate „Swedbank” pension in one of these funds:
    • Life-cycle pension funds are balanced funds, each of which is aimed for participants born in the period specified in the name of the fund. You will choose the fund suitable for you according to your date of birth, and you will be able to accumulate in it until your retirement.
    • Traditional pension funds (Pension 5, Pension 4, Pension 3, Pension 2, Pension 1 and Pension pay-out fund) were closed on 16 May 2019 during the implementation of the Republic of Lithuania Law on the Accumulation of Pensions. Participants of the pension system, who had been accumulating in these funds, and their accumulated funds were transferred to “Swedbank” life-cycle pension funds.
  • After signing the new pension accumulation agreement, the contribution to your personal pension fund account will consist of two parts: a contribution from your salary (gross) and an incentive state contribution from the budget calculated from the average national wages. More information is provided in “About the process of accumulation”
  • The transfer of contributions to the pension funds is administered by SoDra, therefore, you will not have to bother about it.
  • In “Swedbank” Internet Bank you can:
    • Check on the quantity of the contributions transferred to your personal pension fund account and the amount accumulated on your pension fund account;
    • Monitor the profitability of the pension funds;
    • Familiarise yourself with the annual report about the funds accumulated in your pension account.
  • The pension fund manager “Swedbank investicijų valdymas”, UAB together with “Swedbank Robur Fonder”, AB, a company operating in Sweden, have been achieving good results.
  • The accumulated funds are accounted on your personal pension fund account, where they are secure, since they are separated from the assets of the company managing the pension funds and are stored in a depository (Fund depository – “Swedbank” AB, company code 112029651, address Konstitucijos pr. 20A, Vilnius).

If you are a new participant of pension pillar II and it is your first pension agreement, in 2020, your contribution will include:

  • A 2.1% contribution calculated from your salary (gross);
  • A 0.6% incentive contribution from the state budget calculated from the average national wages*.

* The 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.

The amount of the contributions will gradually increase within the upcoming four years.

You can start accumulating with maximum contribution, i.e. to pay 3% of your salary and to receive a 1.5% incentive contribution from the state budget before 2023. Important: you must choose the method of accumulation while concluding the agreement, because it will not be possible to increase the contribution later and you will accumulate with a gradually increasing contribution.

If you are a new participant of pension pillar II and it is your first pension agreement, in 2020, your contribution will include:

  • A 2.1% contribution calculated from your salary (gross);
  • A 0.6% incentive contribution from the state budget calculated from the average national wages*.

* The 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.

The amount of the contributions will gradually increase within the upcoming four years.

You can start accumulating with maximum contribution, i.e. to pay 3% of your salary and to receive a 1.5% incentive contribution from the state budget before 2023. Important: you must choose the method of accumulation while concluding the agreement, because it will not be possible to increase the contribution later and you will accumulate with a gradually increasing contribution.

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.

What will you have to do?

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:

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.

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.

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.

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

  • Having concluded the agreement on pension accumulation in pillar II, 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.
  • Your contribution (up to 3% from your salary), which will be transferred to your personal pension fund account, is the part of your personal income deferred for accumulation. The other part of the contribution is the incentive contribution paid by the state.
  • The SoDra pension will not decrease because of the accumulation in the fund of pillar II.
  • 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.
  • Administration fees apply to the pension accumulation.
  • More information is available in the Rule of the Pension Fund and the Investment Strategy Document.
  • Responsible investment policy.