Unique opportunity 4 = 10
The state still contributes 4% to the pool from social tax, but now you can choose whether you contribute 2%, 4% or 6%.
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The II pillar is one of the most rewarding long-term investments with tax incentive, and it is when you start saving for retirement at a young age that its full potential is revealed. Besides, the amount collected is heritable and you can withdraw it at your convenience. However, it would be wise to do this at retirement age, otherwise you will have to pay a 22% income tax.
The state still contributes 4% to the pool from social tax, but now you can choose whether you contribute 2%, 4% or 6%.
Simply keeping money in your account means you miss out on potential returns and the value of your money even decreases due to inflation. Over the past 20 years, the average rate of return on pension funds has outpaced inflation.
Time is the best friend of a saver in the II pillar: a small amount each month will add up to a large sum decades later. Over a period of 10 years, at the current average salary, EUR 10,000 is accrued, to which productivity and compound interest are added.
Joining the II pillar is free and only takes a few minutes. It is just as easy to switch funds later.
Bring your II pillar to usBy default, your contribution is 2%, but now you can decide for yourself whether it stays that way. A 25-year-old saver with an average salary can have a significant impact on the size of the pension by their choice alone. The state still adds 4% from social tax and if you choose to contribute 6%, the total is 10%. The higher the contribution, the bigger the pension.
The rate of return of the selected pension fund(s) and the eighth wonder of the world are added: compound interest. II pillar contributions are made from the gross salary, which means an immediate 22% income tax benefit.
Submit an applicationOur investment policy is to achieve the highest possible long-term rate of return. Over the past 20 years, LHV pension funds have performed the best in Estonia.¹
The assets of LHV pension clients were better protected during the last major economic crisis. We will do our utmost to ensure that future economic shocks also have as little of an impact on savings as possible.
We were the first to launch an environmentally friendly fund with the aim of making the economy more sustainable. With your choice, you contribute to a greener future.
Out of the Estonian pension funds on the market, LHV’s funds are the most active in making investments in Estonia. We have our own large and capable local investment team.
Two important issues need to be taken into account when selecting the II pillar pension fund: how long you have left until retirement and how much risk you want to take. As a rule, the more a fund invests in stock markets, the higher the risk level of the fund, but also the higher the expected rate of return.
Log in to the self-service.
Choose the suitable LHV fund to which you wish to direct deposits and exchange existing units.
That’s it. Today’s decisions can start earning money for your future.
Together we will find the right solution.
Reet Roos
pension consultant
Mon–Fri 8–17
680 2743
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