30.10.2026
More than 124,000 people in Estonia have already increased their personal contributions to the II pillar to four or six per cent of their gross salary. This year, nearly 18,000 II pillar investors have made this decision, and a further 16 per cent of Estonian residents are planning to increase their II pillar contributions this year or are still considering doing so, according to a Norstat survey commissioned by LHV.
According to Vahur Vallistu, Chairman of the Management Board at LHV Varahaldus, increasing contributions to the II pillar could, over the long term, provide a significant boost to future financial security. For persons earning the average wage in Estonia, increasing their personal II pillar contribution from the current two per cent to four per cent or six per cent means that a few dozen euros more are put to work every month. “Often, that sort of sum is spent on an impulse buy almost without one realising it. At the same time, making an additional investment in the II pillar could mean tens of thousands of euros more in assets in the future,” noted Vallistu.
He added that once the daily expenses have been covered and the ‘peace of mind’ fund has been established, it is worth considering directing a larger part of the income to the second pillar. “On the one hand, this is a tax-efficient way of making your money work more effectively for your future; and on the other hand, the time and consistency of saving will certainly have a positive impact on the amount of your future pension,” said Vallistu.
Compared to a survey carried out at the same time last year, interest in increasing contributions has grown. The most significant positive change has taken place among 30–39-year-olds. In this age group, 28 per cent of people are planning to increase their contributions or are considering doing so; last year, the corresponding figure was 18 per cent.
Increasing contributions to the II pillar has a particularly significant impact when you are younger. Investments have more time to grow, and compound interest works more effectively for the investor. However, the decision to increase contributions to the II pillar will have an impact throughout the life course. “Over the years, the II pillar portfolio grows through a combination of new contributions and return on existing investments. That’s why, when saving for your pension, it’s worth looking beyond the next month or year,” said Vallistu.
The survey revealed that 19 per cent of 18–29-year-olds are planning to increase their contributions or are considering doing so. By contrast, the corresponding figure is 15 per cent for those aged 40–49 and 50–59, and 6 per cent for those aged 60–75.
However, a large proportion of survey respondents do not plan to increase their contributions. Of all those surveyed, 38 per cent said they had no opportunity to do so, and 31 per cent saw no point in it. This year, the lack of opportunities was most frequently cited by those aged 40–49, with their proportion rising from 35 per cent last year to 41 per cent.
You can increase your II pillar contributions until 30 November, and the new contribution rate will take effect from 1 January. You may also change your decision or withdraw your application until 30 November. It is also possible to change the contribution rate for the II pillar in subsequent years, meaning that people will always have the freedom of choice. It is important to bear in mind that the contribution rate selected as of 30 November will apply throughout the following year.
You can increase your II pillar contribution at your home bank or on the www.pensionikeskus.ee page.
The Norstat survey, commissioned by LHV Varahaldus, involved 1000 Estonian residents aged 18–74.
LHV Pension Funds are managed by AS LHV Varahaldus. Read the prospectuses and key information documents of LHV Pension Funds at lhv.ee/en/second-pillar. The rate of return of the fund in the previous periods does not constitute a promise or a point of reference for the fund’s rate of return in future periods. The preservation of the value of the sum invested into the fund is not guaranteed.
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