07.11.2025
According to a recent Norstat survey commissioned by LHV, one in five Estonians has never checked the balance of their II pillar pension account, or does so less than once a year.
According to the Estonian Funded Pension Registry, around 475,000 people make contributions to the II pillar. ‘Of these contributors, nearly 95,000 have increased their personal contribution in the II pillar to 4% or 6% of their gross salary, which provides significant leverage for building future financial security. The strong interest shows that there is a financially aware segment of society that has actively taken control of managing their finances for the future,’ Vahur Vallistu, the Chairman of the Management Board of LHV Varahaldus, said.
Conversely, the LHV-commissioned Norstat survey revealed that as many as 20% of Estonians have never checked their II pillar account balance or do so less than once a year. Additionally, 10% of respondents said they were unaware of where to track their II pillar funds. ‘The results highlighted that interest and awareness are lower among people with lower incomes. Yet, for many of them, the II pillar is the most important financial asset that will help them cope better in the future,’ Vallistu noted. The survey’s findings suggest a broader trend in which financial literacy is improving across society as a whole, but development is very uneven. ‘We see that the number of financially savvy people is growing rapidly, but at the same time, the gap in financial awareness between different extremes is widening. This is an issue that still requires attention,’ he emphasised.
In addition to lower-income individuals, the survey indicates that young people are less interested in their II pillar assets. As many as 34% of people aged 18–29 have never checked their II pillar account balance or do so less than once a year. ‘Investing in the II pillar is one of the longest-term yet most effective ways to grow money. For young people, it is somewhat understandable that pensions may seem distant and little has accumulated in the II pillar yet, but future financial security is built gradually over decades,’ Vallistu stressed. Therefore, it is worthwhile for people of all ages to regularly check how their II pillar investments are performing and adjust their strategy, if necessary. ‘Awareness of what is happening in your II pillar should be part of basic financial hygiene because it helps create peace of mind,’ Vallistu said.
According to the survey, the most active followers of the II pillar accounts are people approaching retirement. The closer one gets to using the accumulated buffer, the greater the interest in seeing how much has built up over the years through consistent, tax-efficient, and automated contributions. ‘For many Estonians, this is a moment when every additional euro saved becomes important. In Estonia, the state pension makes up less than 40% of the average salary, so it is crucial to save additional funds for the future independently,’ Vallistu said.
He also noted that an increasing number of people in Estonia wish to invest in the II pillar on their own. This is possible through a pension investment account (PIA), which is part of the II pillar system. ‘For example, when investing in a broad-based index fund, there is no need to use the service of a management company. It is a fully automated process that anyone can set up in a few minutes,’ Vallistu explained. He emphasised that paying a fund manager makes sense only if their work creates real added value for the client. ‘For a few clicks, this is hard to justify. Especially as, for example, the fees charged by LHV PIA are nearly half those of Estonian pension funds when investing in an index fund. Over a long period, this can mean thousands of euros of extra income for the individual,’ Vallistu highlighted.
The status of a pension account can be easily checked on the website of the Estonian Funded Pension Registry under the ‘My pension’ section. After logging in, users can see when the II pillar was opened, which fund their money is invested in, and the account’s value. If requested, account balance notifications can also be sent to an email address. The II pillar account balance can also be conveniently viewed via online banking.
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