We’ll make sure your pension grows
Instead of broad-based indexes, we prefer to manage assets actively: we monitor the surrounding environment and invest in different asset classes.
- Consistently positive result for assets
L and M are the only Estonian funds to have ended each of the last 10 calendar years with a positive rate of return every year. - Wisely managed risks
We invest in different asset classes and are not dependent on the winds of volatile stock markets. Our strategy is to avoid big falls, and we know that in the long run this is more effective. - Number 1 pension grower in Estonia for 20 years
By avoiding bigger losses and making investments with better rates of return, we preserve and grow your assets over the years.
Why should contributions to the second pillar be increased?
A bigger contribution means a bigger pension
Your contribution is 2% by default. However, now you can decide whether you’ll keep it like this. If you select 6% as the rate of your contributions, you will set aside 10% of your salary every month for a more secure future from the start of the new year. The state will always add 4% to your contribution. Contributions to the second pillar are made from your gross salary, which means that you immediately win 22% on account of income tax. The return of the selected pension fund(s) and the eighth wonder of the world – compound interest – are added to this.
Calculate the impact of higher contributions
Find out how much more you can save in the second pillar by increasing your contributions.
Larger contributions – like picking up a coin from the ground
Raivo Hein
Investor & Financial Literacy Promoter
“I’ve always been guided by the principle that in life and in investing, you have to trust yourself and use your head. As far as increasing contributions to the second pension pillar is concerned, I’ve already done so. I submitted my application in the first few weeks and would definitely recommend it to others.”
Oksana Tandit
Fashion Designer, Politician
“I raised my contributions to 6% as soon as the opportunity arose. For me, I interpret this six percent contribution as a “tithe for a better future”, because the state also adds 4 to my 6 percent – from social tax.”
Andres Viisemann
Founder of LHV, Fund Manager
“Paying the maximum amount permitted by law into my pension account is an obvious and rational choice for me. If I can put any small amount into my pension account before I pay my national taxes, I will. I also pick up every cent on the street when I see it.”
Pension fund fees
The ongoing fees of pension funds divide in two: the management fee, which the management company charges to cover the costs of the service and the fees and costs related to the investments of the fund. The actively managed pension funds of LHV stand out from others with their multi-asset portfolios, which also has an impact on the amounts of ongoing fees. We believe that a distinctive portfolio will also bring a more stable performance for the saver.
The rates of current fees and management fees valid as of 28.02.2025 have been taken into account, to calculate the average fees, all fees have been weighted by the volumes of the funds as of 28.02.2025.
We invest differently
A high long-term return can only be achieved by avoiding big falls, because falls always hurt more. The maths shows that a 50% decrease in the value of a pension fund requires a 100% increase to recover it. In order to avoid large losses, we actively manage our pension assets and invest in different asset classes: listed equities, over-the-counter equities, real estate, forests, bonds and loans to companies. Other major pension funds in the Western world are investing in a similar way.
| Asset classes | LHV XL and L | Index funds |
|---|---|---|
| Listed equities | ||
| Private companies | ||
| Property | ||
| Precious metals | ||
| Raw materials | ||
| Bonds | ||
| Forest |
The comparison highlights, in a simplified way, the specificities of passively managed funds and actively managed funds, using LHV funds as an example, and does not reflect individual index funds, which may also include other asset classes.
LHV II pillar pension funds
At LHV, you can choose from seven II pillar pension funds, which can be divided into four larger groups.
Three easy steps to join the LHV II pillar
Log in to the self-service.
Select an appropriate LHV fund to allocate your contributions and exchange your existing units
That’s it. Today’s decisions can start earning money for your future.
More than 125,000 clients are already growing their pensions wisely. Come and join them.
Have you already thought about the III pillar?
Read moreDo you value different investments and risk spreading?
LHV Pensionifond XL is suitable if
- you have more than 15 years left until retirement,
- you are prepared to take above-average risks,
- your aim is the long-term growth of your pension savings.
LHV Pensionifond L is suitable if
- you have more than 10 years left until retirement,
- you have average risk tolerance,
- your aim is the long-term growth of your pension savings.
LHV Pensionifond M is suitable if
- you have 3–10 years left until retirement age,
- you have moderate risk tolerance,
- your aim is the long-term stable growth of your pension savings.
Want to keep the money you have collected?
LHV Pensionifond S is suitable if
- you have 2–5 years left until retirement age,
- you have low risk tolerance,
- your aim is the preservation and modest growth of your pension savings.
LHV Pensionifond XS is suitable if
- you have less than 3 years left until retirement,
- you have low risk tolerance,
- your aim is to preserve your savings and avoid losses.
Do you prefer low management fees and take higher risk?
LHV Pensionifond Indeks is suitable if
- you want to invest in financial markets on a continuous basis,
- you wish to grow your pension pillar at the lowest possible costs,
- you have prior personal investment experience.
Do you believe in a green transition?
LHV Pensionifond Roheline is suitable if
- you have more than 15 years left until retirement,
- you are partial to thinking green,
- you would like to invest your pension funds in an environmentally friendly and sustainable manner.