24.03.2026
The III pillar has rapidly gained popularity among Estonian people over the past two years, becoming the most attractive investment product, according to a recent survey by Emor. 42% of those interested in investing plan to invest in the III pillar within the next 6 months.
Commenting on the results, Vahur Vallistu, Chairman of the Management Board of LHV Asset Management, points out that compared to a similar survey in 2024, the proportion of people planning to invest in the III pillar has grown by a remarkable ten percentage points. At that time, the corresponding figure was 32%. ‘The growth in the popularity of the III pillar is driven by the general improvement in the financial literacy of Estonian people. More and more people are starting to invest using tax-advantaged opportunities, of which the III pillar is one of the best examples,’ said Vallistu. Investing means growing money over a longer period, and regular contributions to the III pillar are an effective way to build future security. ‘For every euro invested in the III pillar, you get 0.22 euros back from the state with your tax return. Without a doubt, such a tax incentive is motivating,’ said Vallistu.
Considering Estonia’s demographic trends, the III pillar is becoming an increasingly important part of people’s pension strategy. Shaping a dignified retirement is closely linked to a person’s earlier saving and investment decisions, and the amount of income in retirement can be significantly influenced by oneself. ‘The growing popularity of the III pillar shows that people are planning their financial security more comprehensively over their entire life cycle,’ said Vallistu. He emphasizes that it is time to let go of the hope that the state will take care of you in old age. ‘The fact is that the hope of pensions rising forever and ever is not relevant. Each person has an increasing responsibility to create their own financial buffer,’ noted Vallistu.
The survey also revealed that stocks remain important for those interested in investing. 41% of the survey participants plan to invest in them in the next 6 months, which is one percentage point more than in 2024. Among those interested in investing, 37% of respondents plan to put money into index funds. The number of those who plan to put money into a term deposit has decreased slightly (22% this year and 24% in 2024). 14% of respondents intend to invest in real estate, which is the same as two years ago.
Check out LHV’s third pillar funds here
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