„Swedbank“ Pension

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.
  • Swedbank pension is a conservative decision for the entire accumulation period. Upon conclusion of an agreement on Swedbank pension, you have to select a fund depending on whether you are choosing a decision for the entire accumulation period, with the investment risk changing along with your age, or you want to take decisions and change pension funds yourself.
    • Life cycle pension funds are balanced funds designed for people born in the specified year. You will select the most suitable fund according to your date of birth and you will not have to take decisions and change pension funds throughout the term of the agreement.
    • Conventional pension funds are designed for customers who wish to take decisions themselves and change pension funds according to their age. The most important is to select a fund that is most suitable for your age and to timely decide on changing the fund taking our recommendations into account.
  • Upon signature of a new pension accumulation agreement, the money coming to your personal pension fund account will consist of:
    • 2 % of your pay as your basic SoDra contribution;
    • 2 % of your pay as your additional contribution;
    • 2 % of the average national pay as an additional incentive contribution paid from the state budget.
  • Transfer of payments to the pension funds is administered by SoDra so you will not be responsible for this.
  • In Swedbank’s online banking system you will be able to:
    • view the payments transferred to your personal pension fund account and the amount already accumulated in the account;
    • view the selected pension fund and change it free on charge based on recommendations provided – if your fund is a conventional one;
    • monitor the pension funds‘ profitability results;
    • view an annual report on the funds accumulated in your pension account.
  • Swedbank investicijų valdymas UAB, a pension fund manager, and Swedbank Robur Fonder, a Swedish company, work jointly to ensure best performance of the funds;
  • The funds being accumulated are managed in your personal pension fund account and are safe as they are kept by a depositary, separately from assets from the pension fund manager.

The Swedbank pension accumulation service is provided by Swedbank investicijų valdymas UAB through its representative Swedbank, AB.

If your pension accumulation agreement was concluded before 31 December 2012, in 2013 you had to select one of the following methods of pension accumulation in Tier 2 Swedbank pension fund:

  • maximum accumulation (this model is also used by all clients who have concluded the pension accumulation agreement after 1 January 2013);
  • minimum accumulation;
  • suspending the transfer of payments and receiving only SoDra old age pension.

Your pension accumulation method

If you have chosen maximum accumulation, an amount transferred to your personal pension fund account consists of three components:

  • 2 % of your pay as your basic SoDra contribution;
  • 2 % of your pay as your additional contribution;
  • 2 % of the average national pay as an additional incentive contribution paid from the state budget*.

If you have chosen minimum accumulation, only the basic SoDra contribution is paid to your personal pension fund account:

  • 2 % of your pay as your basic SoDra contribution; starting from 2020, the rate of the basic SoDra contribution will be increased to 3.5 %.

If you have suspended payments, no amounts are transferred to your personal pension fund account. The month in which you filed your application for the suspension is the last month for which a basic SoDra payment was transferred to your personal pension fund account. The amount accumulated by you in the pension fund by that date remains in your personal account and is continued to be invested until you reach pension age when the accumulated amount will be paid out to you.

You can renew accumulation in Tier II Swedbank pension fund. Transfers to your personal pension fund account will be made again and the funds in the account will increase. In this case the size of the state social security old-age pension will be proportionally reduced according to the procedure prescribed by law.

You can file the application for the renewal of transfer of payments by logging in to Swedbank online banking system or at a Swedbank‘s branch at your convenience.

* The incentive contribution from the state budget is determined as a percentage of the average national gross pay based on the official average pay data for the year before last as published by Statistics Lithuania.

SoDra performs the function of the payments’ administrator by transferring all the contributions – basic, additional and incentive – to your pension fund account. The delay in the contribution transfer is approximately three months, e. g. for January in the middle of March, for February in the middle of April etc.

You can always monitor the transfer of funds from SoDra and the amount accumulated in your personal pension fund account in Swedbank’s online banking system.

If you have selected maximum accumulation, the size of the state social security old-age pension will be reduced proportionally according to a procedure prescribed by law. The old-age pension under the maximum accumulation model is not reduced due to the additional incentive contribution. A person accumulating funds in pension funds assumes the investment risk and there are no guarantees that the value of investments will increase.

The right to receive a pension payout shall be granted to you upon reaching the retirement age or if you are awarded early state social insurance retirement pension. Retirement age for woman is 62 years 4 month of age and for man 63 years and 8 months of age in 2018. The retirement age calculator can be found here.

Pension benefits may be paid in the following ways:

In accordance with current legislation, the acquisition of a pension annuity for the entire accumulated amount shall be mandatory if the accumulated amount reaches: EUR 17,107.06 for a 62 year-old person and EUR 16,523.67 for a 63 year-old person. A mandatory annuity limit decreases with increasing age. If the accumulated amount of a 62 year-old person exceeded the amount of EUR 102,642.35, the amount that exceeds specified amount might be paid out in a one-off payment.

Further information about pension payments is published at http://www.lb.lt

  • Upon conclusion of Swedbank’s pension accumulation agreement you are not allowed to terminate unless it is a Tier 2 pension accumulation agreement concluded for the first time. The latter can be terminated on a unilateral basis by filing an application within 30 calendar days after the date of its conclusion.
  • The state social security old-age pension for persons taking part in the pension accumulation system is proportionally reduced according to a procedure prescribed by law.
  • If you have selected an accumulation method with your own contributions, the additional payment (2 % of your pay) which will be transferred to your personal pension fund account forms part of your income earmarked for accumulation. Other payment parts include the basic payment from SoDra and the incentive payment by the State.
  • A person accumulating funds in pension funds assumes the investment risk and there are no guarantees that the value of investments will increase. Past performance does not guarantee future results.
  • Administration fees are charged for the accumulation of pensions.
  • For more detailed information, please read the regulations of the pension fund.
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