How fund performance affects your pension?
In case of long term investment, the performance or the investment profit, the amount of which the collected sum increases or decreases, is of crucial importance. The pension calculator gives a simple overview of the crucial roles that the deposits from the monthly salary and the productivity of the fund play. How the calculator works?
The comparison includes pension funds that have been active for more than 3 years.
The comparison includes pension funds that have been active for more than 5 years.
The comparison includes pension funds that have been active for more than 10 years.
During the period 2002-2011, LHV Pensionifond XL invested 50% of its assets in stock markets. The Fund’s strategy changed on 01 January 2012, and since then LHV Pensionifond XL has invested 75% of its assets in stock markets.
As of May 2, 2019, up to 25% of the assets of LHV Pensionifond S can be invested into real estate and equity markets. Prior to the said date, LHV Pensionifond S was a conservative pension fond and invested into debt instruments.
The comparison includes pension funds that started at the initiation year of the Estonian pension system.
Fund performance in previous periods does not constitute a promise or indication of the yield of subsequent periods. Graphic shows a period starting from . The geometric average annual return for the last 2, 3 and 5 calendar years of the pension funds are available here.
Why does LHV make investments to Estonia?
In a situation where all asset classes are very expensive, we prefer avoiding high-risk investments already for a prolonged period. LHV have started developing the local bond market by ourselves, competing with international banks as well as banks operating in Estonia for financing companies with growth ambition and local governments.
We know our country and entrepreneurs, which enables us to assess the local risks and opportunities better. Operating on the domestic market has its advantages.
Bigger rate of return
We are trying to find enterprises and activity areas where long-term investments of pension funds could facilitate new development and earn a larger-than-average income to the clients of our pension funds.
Why you should save for retirement?
1st pillar or state pension ensures your minimum monthly income. To receive a 2nd pillar pension or a mandatory funded pension, you will be paying 2% of your gross income, to which the state adds another 4%. The amount of the disbursement depends on the sum accumulated.
Switch funds free of charge
In 2017, the exit fees of pension funds, that used to amount to 1% of the pension assets accumulated, were eliminated. Now you can transfer the shares accumulated at one fund manager to another free of charge.
Rate of return
The sum you manage to raise is largely dependent on how much you have invested with the help of the state and how much the pension fund manager has grown the savings. In the case of a long-term investment, the investment’s rate of return or investment income, to the extent of which the sum grows or decreases, is of key importance.
Pension can be bequeathed
The assets of the pension fund can be bequeathed. Heirs are free to choose whether to withdraw the amount at once or to bequeath your fund shares. Income tax of 20% applies to the cash payments.
Let us know if you have any questions.
Together we will find the right solution.