- 'Safe Pension Fund' is an investment life insurance service designed for those who want to accumulate funds for their pension independently. The service is provided by Swedbank Life Insurance SE, Lithuanian Branch via its agent Swedbank, AB.
- By making regular contributions, by the age of retirement you can save sufficient money for a more comfortable life. Besides, whatever you save in the Safe Pension Fund will belong to you. In case of your death, the saved amount will be paid to your heirs or to the beneficiaries named in the insurance agreement.
- Upon signing Safe Pension Fund agreement, the investment strategy is individually tailored to your needs and depends on accumulation period.
- Paying premiums is convenient and easy – they can be automatically debited from your e-account once a month on your chosen day. You are free to determine the amount of a premium to increase or reduce it according to your financial situation or the desired amount of savings.
- The invested amount is covered by guarantee. The guarantee means that once the insurance agreement expires and return on investments is negative, you will be paid the guarantee amount, i.e. the total amount of paid premiums, minus the charges established in the Safe Pension Fund agreement. The guarantee is applied if the investment value is smaller than the guarantee amount upon the expiry of the agreement. Please note that in case of termination of the Safe Pension Fund agreement before term or its termination in other cases (in case of death), no guarantee is applied.
The State encourages this saving method and applies tax rebates for accumulative life insurance premiums. Therefore, every year you will be able to benefit from the rebate on the income tax of individuals, and recover up to 15 % of the total premiums paid.* The maximum amount of the tax premiums paid per year from which the tax payer can recover 15 % is EUR 2,000.
More information here.
* i.e. premiums according to accumulative life insurance contracts, to pension funds, associations of participants of occupational retirement funds, and/or analogous entities operating in a State of the European Economic Area.
Upon signing Safe Pension Fund agreement, the investment strategy is individually tailored to your needs and depends on accumulation period. Usually, riskier investments are made in the beginning of accumulation period to let your fund 'make money'. Later, the risk is gradually reduced to preserve the accumulated savings.
Your savings will be invested into the followings investment directions:
- Investment into global shares – highly risky investment direction if invested for a long period. If choosing this direction for investment, not only bigger return but also bigger fluctuations in value can be expected. Investments are mainly made into the shares of developed markets, with only a small share of investments into the shares of developing markets. Based on the stability of developed regions and growth potential of developing countries, the results of this direction of investments remain more stable when economic cycles change. For further information about investment direction.
- Direction of investment into medium-term bonds – low risk investment direction, when investment is made for 5–7 years. If choosing this direction, smaller fluctuations in value but also smaller return can be expected. Investments are made into government bods of euro area, with a maturity of 5–7 years. It is the direction, the unit value of which reflects the average rate of return, i.e. bond index of euro area of a maturity of 5–7 years. For further information about investment direction.
- Direction of investment into short-term bonds – low risk investment direction, when investment is made for 1-3 years. If choosing this direction, smaller fluctuations in value but also smaller return can be expected. Investments are made into government bods of euro area, with a maturity of 1-3 years. It is the direction, the unit value of which reflects the bond index of euro area of a maturity of 1-3 years. For further information about investment direction.
This well-balanced life-cycle investment strategy allows to expect good earnings, while in case of any losses incurred, the guarantee amount is paid upon the expiry of the agreement.
Before signing an agreement, please read the important information.
- Log on to your Swedbank internet banking account.
- Fill in suitability questionnarie.
- Complete the application to teh Safe Pension Fund for signing an agreement;
- Having checked the filled in details, confirm the conclusion of the agreement;
- When signing Safe Pension Fund agreement, at the same time a consent of the e-account with automatic payment will be given. Upon choosing this mode of payment, monthly insurance premiums will be automatically debited.
If you have any questions regarding signing the agreement on internet bank, please call us on 1884. Our Consultation Centre experts will be happy to help you and answer your questions.
- The accumulated amount will be disbursed to you upon the expiry of the Safe Pension Fund agreement. You will be paid either the amount of investment value of the agreement or guarantee amount, whichever is bigger upon the expiry of the insurance agreement.
- Before the expiry of the Safe Pension Fund agreement, you have to submit an application for insurance benefit disbursement. You can do it on internet banking or by calling 1884 and upon arranging the meeting at your chosen Swedbank branch. When filling in an application at a bank branch, you must have your identity document – passport or identity card with you.
- Funds accumulated in the Safe Pension Fund are your property. In case of your death, the saved amount will be paid to your heirs or to the beneficiaries named in the insurance agreement.
If you have any question or hesitation regarding your insurance agreement or disbursement of accumulated savings, you are kindly invited to call us 1884, send us an email firstname.lastname@example.org or visit the nearest „Swedbank” branch.
You will find information about the procedure of claim settlement and answers to the applicants' questions.
In case of any doubt in our answer, you always have the right to apply to the Supervision Service of the Bank of Lithuania: correspondence address: Žirmūnų g. 151, LT-09128 Vilnius The description of the detailed procedure of dispute settlement is available on the website of the Bank of Lithuania.