State-supported Pension Savings
Pillar 2 Pension
Planning for retirement can be simple. Pillar 2 Pension Savings allows you to accumulate additional funds for a more comfortable retirement with minimal effort. A clear, straightforward path to supplement your pension, ensuring stability for the years ahead. How does it work?
- Automatic Contributions. A portion of your salary, along with a state incentive, is automatically transferred to your pension account.
- Age-Adjusted Strategy. The investment strategy of each targeted pension fund is tailored to your age, balancing investment growth and stability.
- Supplemental Income. At retirement, receive funds alongside your standard pension from the State Social Insurance Fund Board (Sodra). Upon reaching retirement age, the funds accumulated in the pension fund are typically paid out along with the standard state "Sodra" pension, but they can also be paid out in other ways.
Supplementary Pension Savings
Next Generation Pension
Planning for retirement doesn’t have to be daunting. Supplementary pension savings can boost your retirement income and provide more financial opportunities. Here’s why they’re a smart choice:
- Effortless Setup. Just a few clicks to find your savings needs and subscribe.
- "Automagic" Investments. We make investment decisions for you based on your age.
- Transparent, decreasing fee. Our single competitive fee decreases as your accumulated amount grows.
- Ongoing Guidance. Get continuous support with insights and tips to stay on track.
The service provider and distributor is Lithuanian branch of SEB Life and Pension Baltic SE. Read more about the product in Key Information Document (PDF)
Pillar 3 Pension Funds
Third Pillar Pension Funds are an attractive choice for those who want to save independently. These funds are designed for long-term pension savings. How does it work?
- Based on your age, you can start saving with higher-risk funds focused on asset growth and, as you approach retirement, transition to more stable and conservative funds.
- You choose the fund, and professional fund managers aim to generate the optimal investment return.
- Your employer can directly contribute to your pension savings by making contributions to your pension account.
- After concluding the contract until the end of 2024 the GPM relief would be applied.
The service is provided by UAB SEB Investicijų Valdymas. The pension fund distributors are AB SEB Bankas and the Lithuanian branch of SEB Life and Pension Baltic SE.
Why should you accumulate supplementary pension?
Increasing life expectancy means that the number of future pensioners is growing at a faster rate than the share of the tax-paying population. The ageing of the population directly affects the level of the state-paid pension (Pillar 1), which is projected to be only 30% of previous earnings by 2040.
If you want to maintain your normal quality of life in retirement, you should make efforts to ensure that you will receive 70-80% of your previous earnings. You can achieve this by accumulating in all three pillars.
Long-term investments help accumulate more, since not only the paid-in contributions are invested, but also the returns received for them. The sooner you start and the longer you accumulate, the more you will build up and the easier it will be to achieve the desired result.
The state encourages the accumulation of pensions. When accumulating in second-pillar funds, the contribution from the state budget is more than EUR 235 per year, and those accumulating in third-pillar funds can recover up to EUR 300 in personal income tax annually.
You may also find it beneficial
Calculate Pension Forecast
Wondering what your future pension might be?
- Evaluate the potential size of your pension based on your current contributions, age, and employment status.
- Discover your financial future forecast.
- Make smart and realistic decisions about your desired pension.
- Simple and easy to use anytime
Your Personal Pension Page
All you need for retirement planning
- A good overview of your pension assets
- Future pension calculator
- Expert advice to find the best saving strategy
- Quick and easy options to adjust your saving plans
How Pension System Works
How does Lithuania’s pension system supports a secure retirement with three integrated pillars?
- I Pillar: The main state pension through “Sodra”
- II Pillar: Additional pension savings based on individual contributions and state incentives.
- III Pillar: Voluntary contributions for supplementary savings
More about pension
Have questions about Pension savings? Let us call you!
- Complete our simple form, and one our pension advisors will be in touch with you soon.
