All services / Pension / 2nd pillar pension


		2nd pillar pension
			Pension Plan "Stability"
			Pension Plan "Dynamics"
			Reports
			Apply
			Current information
		3rd pillar pension

Second pillar of pensions

Apply

Final result is important in the marathon!

In a marathon it is not important what is your ranking after 5 or 10 kilometres, instead it is your result at the finish line that matters. Therefore it is important to balance your strength to outpace your rivals.
In order to ensure good results in a marathon, it is important to have:

a sound strategy and
a focus on the final rather than on intermediate stage.

Swedbank Investment Management Company offers the following investment plans of the state funded pension scheme:

conservative pension investment plan "Stability" of Swedbank and
active pension investment plan "Dynamics" of Swedbank.

Since May 2009 Swedbank Investment Management Company has delegated daily management operations of the second pillar pensions to Swedbank Robur Fonder AB, a company of Swedbank Group which has been working already since 1967. Recognition awarded by Lipper, a company of Reuters analysts, demonstrates the high level of qualification of Swedbank Robur AB. Many years Swedbank Robur Fonder AB is recognised as the best investment management company in the Nordic region.

How it is possible to compare a marathon with the second pillar of pensions?

A sound strategy in the management of the second pillar of pensions is as important as it is in running a marathon. Our pension investment policy provides for investing a considerable part of funds (about 40 %) by active investment plan in the stocks of local and foreign companies. Experience of global financial markets over the decades shows that return on stocks in the short-term may be more variable, however, in the long run (over 10 and more years) it may bring higher profits than short-term bonds. *
We focus on the final result because when you will reach the retirement age it will be important for you how large your accrued capital will be.

How does the active investment plan differ from conservative investment plan and which plan to choose?

Conservative pension investment plan "Stability" of Swedbank

Active pension investment plan "Dynamics" of Swedbank

1. This investment plan is characterised by a conservative investment policy that envisages a moderate yet stable increase in he value of pension capital.

2.Funds are invested only in fixed income financial instruments, i.e. mainly in bonds and bank deposits, the value of which is subject to lower fluctuations in comparison with corporate stocks.

3. This plan is suitable for those customers who have less than 10 years left before they reach retirement age. This is a period of time when it is more important to safeguard the existing accrued capital and get a moderate additional increase in the pension capital than to aim at rapid increase in the pension capital.

1. This investment plan is characterised by balanced investment policy which permits higher fluctuations in the value of pension capital, however, it may ensure a higher increase in the capital over a longer period of time.

2. A considerable part of funds (around 40 %) is invested in the stocks of local and foreign companies.

3. We recommend to choose this plan for those customers who have at least 10 years left before they reach retirement age because it is important for the customer to have enough time to overcome short-term fluctuations in the pension capital.

* The historic yield does not guarantee similar yield in the future.

What else you will get?

When applying for participation in any of the investment schemes, you can enjoy opening of salary account at no charge, payment card Visa Electron or Maestro without issuance fee and get a free of charge connection to the remote banking services.
Online banking facility of Swedbank is the most convenient way how to apply for Swedbank pension investment plans "Dynamics" or "Stability". You can also apply for them at any branch of Swedbank.
You can follow the yield rates of investment plans in the online banking facility of Swedbank.

State funded pension scheme or the second pillar of the pension system was introduced on 1 July 2001. It envisages that additional pension capital is being accrued and a part of the social tax envisaged for pensions is channelled for accrual of additional pension. Money is being accrued in the account of the pension of the second pillar and the amount of the additional pension will directly depend on the capital of additional pension. It is your money which is being accrued in your account, but it will be available for you only after you retire.

For the time being 2 % of gross salary are transferred to the second pillar of pensions. These transfers will increase and starting from 2013 they will be 6% of gross salary.

Until 31 December 2002 the State Treasury was the only manager of pension funds of the second pillar. Since 2003 pension capital of the second pillar has been managed also by private fund managers. Management of funds mainly imply investing of these funds in various investment objects. In Swedbank Group these duties are performed by Swedbank Investment Management Company ["Swedbank Ieguldijumu Parvaldes Sabiedriba" AS], a subsidiary of Swedbank that is located in Balasta dambis 1a, Riga, LV-1048; custodian bank � Swedbank AS.

Prospectuses of pension investment plan "Stability" and "Dynamics" of Swedbank, as well as any other information on these investment plans and their manager is available at the office of Swedbank Investment Management Company AS (address: Balasta dambis 1a, Riga LV-1048, Latvia) during business days from 9:00 to 17:00, as well as on the website of Swedbank Investment Management Company AS at www.swedbank.lv/fondi. You can also get acquainted with the prospectuses of the investment plans at the State Social Insurance Agency.