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About 2nd pension pillar

6 different plans

Select a pension plan that suits you best!

6% of your monthly salary go to the 2nd pension pillar. Select a pension plan that suits you best to enable your savings to grow.

Why to choose 2nd pension pillar with Swedbank?

By applying for the 2nd pension pillar, I agree to my personal data (given name(s), surname, identity number) being made available to the State Regional Development Agency (VRAA) for provision of the respective e-service. The asset manager is Swedbank Ieguldījumu Pārvaldes Sabiedrība AS and the asset custodian is Swedbank AS, having their seat at Balasta dambis 1a, Riga, LV-1048. The 2nd pension pillar investment plan prospectuses and historical performance are available here. The suitable pension plan is determined based on the customer’s age.

Years left until retirement: 0 The current accrual is specified according to the average amount of accrual at the particular age based on statistical data from VSAA on 01.07.2021. See your 2nd pension pillar accrual at latvija.lv

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    Assumptions of calculation

    Assumptions of calculation

    The calculations are for information only. The calculations are based on the assumption that:

    • The current 2nd pension pillar accrual is specified according to the average amount of accrual at the particular age based on statistical data from VSAA on 01.07.2021. You can check your current 2nd pension pillar accrual on the portal www.latvija.lv.
    • Contributions equivalent to 6% of the monthly salary before tax withholdings are applied towards the 2nd pension pillar accrual.
    • The amount of the expected accrual is indicated before tax withholdings and taking into account a 2% future annual inflation rate. Various types of tax relief are not taken into account in the calculation. The amount of accrual has been calculated assuming that the person starts receiving the pension upon attaining the retirement age of 65 years.
    • The expected 2nd pension pillar accrual is made with one of the pension plans offered by Swedbank - Stabilitāte, Dinamika or the life-cycle plans 1970+, 1980+, 1990+ with the average notional annual yield on investments in equities being 7% and in bonds being 2%, less any fees set forth in the prospectus. The most suitable 2nd pension pillar plan has been determined according to the customer’s age. If the suitable plan is Dinamika, then it is assumed that it will be switched to the Stabilitāte plan 5 years before the retirement age.
    • The actual pension plan yield may differ from the values used in these calculations and the historical yield does not guarantee an equivalent yield in the future.

    We - Swedbank Ieguldījumu Pārvaldes Sabiedrība AS* - are the largest 2nd pillar pension manager in Latvia: as of end of June 2019, the number of participants of our managed 2nd pillar pension plans exceeded 538,000 and the amount of assets under management was over 1.68 billion euros. We offer to our clients the conservative Swedbank pension asset investment plan Stabilitāte (Stability), the active Swedbank pension asset investment plan Dinamika (Dynamics), as well as active life-cycle funds for broad range of age groups: Swedbank investment plans "1970+", "1980+" and "1990+". We also are managing assets of Swedbank 3rd pillar pension plans. We are the only 2nd pillar pension manager in Latvia who has so wide range of lifecycle plans.

    We act as a responsible fund manager and consider the potential long-term impact of our investment decisions on environmental, social and corporate governance factors. We are actively involved in promoting sustainability, calling on companies and investment funds to respect and promote sustainable action. We refrain from direct invetsments in companies that do not comply significantly with the principles of sustainability in their activities.

    Our managed pension plans have repeatedly been awarded as the best ones in several categories in Central and Eastern Europe by the Investment and Pensions Europe (IPE). Swedbank's 2nd pillar pension plan Dinamika was recognized by IPE as the best one in Central and Eastern Europe in 2013, 2016 and 2017, whereas in IPE's Real Estate Global Awards 2016 Swedbank's 3rd pillar pension plan Dinamika+60 received an award as the best investor in real estate among Eastern European and several big Western European countries.

    We are a subsidiary of Swedbank Robur AB (Sweden), a Swedbank Group company. We manage assets in cooperation with one of the largest asset management companies in the Nordic region Swedbank Robur Fonder, which is active since 1967 and is also a Swedbank Group company. Hence, the 2nd and 3rd pillar pension assets are managed drawing on Swedbank Robur Fonder's vast experience in international markets, combining it with our local market expertise.

    Useful information

    * Swedbank Ieguldījumu Pārvaldes Sabiedrība AS, unified registration number in the Commercial Register: 40003337582; address: Balasta dambis 15, Riga, LV-1048.
    3rd pension pillar – the pension plans offered by the private pension fund Swedbank Atklatais Pensiju Fonds AS, address: Balasta dambis 15, Riga, Latvia: Stability+25, Dynamics+60, Dynamics+100 and Dynamics+USD.
    The asset manager for the 2nd and 3rd pension pillar - Swedbank Ieguldijumu Parvaldes Sabiedriba AS, the asset custodian - Swedbank AS, address: Balasta dambis 15, Riga, LV-1048.

    Swedbank Investment Plan 1990+

    • Designed specially for those born in/over the year 1990, allows a more active investment strategy. The plan is suitable also for participants with appetite for higher investment risk.
    • The only plan in Latvia where investment risk gradually decreases depending on the savings time horizon. The plan strives to create as large savings as possible for the old age, while maintaining investment safety as the time of withdrawing the funds approaches.
    • At the start of the plan, the permitted weight of exposure to equities will range between 55% and 75% whereas closer to the date of exiting the plan will fluctuate between 0 and 15% in order to achieve optimum investment performance throughout the saving period.

    "Swedbank Ieguldījumu Pārvaldes Sabiedrība" AS, the pension fund manager, offers different pension plans. Select a pension plan that suits you best!

    It’s the money you’ll receive when you retire. Currently, 6% of your gross salary goes to 2nd pension pillar without any extra cost to you. When you retire, the 2nd pension pillar will be a significant source of your income.

    Find out more about pension savings

    In managing pension investments, we strive to grow your savings in the long-term, so we invest the assets in hand-picked companies, government securities and real estate funds.

    Pension plan performance
    Investment lists

    Money under your 2nd pension pillar will accrue for many more years to come, so safety is key. Swedbank is a bank with history dating back nearly 200 years. For additional safety, 2nd pillar pension accrual is held sparely from the assets of the management company or the bank.

    You can check your 2nd pension pillar accrual via the portal latvija.lv.

    See 1st pension pillar accrual
    See 2nd pension pillar accrual

    If you’ve born after 1 July 1971, then you’re automatically a 2nd pension pillar participant. For those born between 2 July 1951 (inclusive) and 1 July 1971 (inclusive), participation in 2nd pension pillar is voluntary. The 2nd pension pillar manager may be changed once per calendar year and the pension plan - twice a calendar year.

    Choose / change 2nd pillar pension plan

    Money under your 2nd pension pillar will accrue for many more years to come, which makes it important to entrust their management to an experienced and professional management company. Our pension plan assets are managed in cooperation with Swedbank Robur which is an internationally acclaimed asset management company with over 50 years of experience.

    Find out more about the management company

    By choosing Swedbank you make sure your money is invested into companies that care about fair wages, gender equality, climate change mitigation, responsible consumption and production. Besides, sustainable pension funds tend to be more resilient to the shocks such as financial crisis or pandemic.

    1. Follow your values by choosing a pension manager with sustainability ambitions. Did you know that more than 2.1 billion euros (84% of total savings in pension plans) of Swedbank’s 2nd and 3rd pension pillar plan assets are directed to sustainable investments as of the end of 2020?
    2. Sustainable pension funds refrain from investing in harmful industries. Swedbank has a “blacklist” of companies if which we don’t invest. You can be sure that your money does not support arms industry, coal mining, human rights violations.
    3. You can always check if your pension manager pays attention to sustainability of investments.
      For example, Swedbank Ieguldījumu Pārvaldes Sabiedrība has its own responsible investment policy.

    Investors are actively directing money to sustainable investments.


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    Source: International Institute for Sustainable Developments

    Support sustainable business with your pension savings

    When money is invested in sustainable companies, it contributes to social and environmental well-being and responsible business. Click on different areas to find out the impact.

    Society

    • Employee health & well-being
    • Human rights
    • Gender equality
    • Non-Discrimination
    • Fair pay

    Environment

    • CO2 Emissions
    • Energy usage
    • Natural resource usage
    • Waste and pollution
    • Climate change mitigation

    Governance

    • Business ethics
    • Transparency
    • Anti-corruption
    • Reporting
    • Responsible suppliers
    Documents and information which are published based on the requirements of Regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability‐related disclosures in the financial services sector, can be found here.

    About inheriting 2nd pillar pension capital

    Starting from 1 January 2020, 2nd pension pillar participant who has not yet claimed an old age pension will be able to choose one of the three options for using their accrued capital which will take effect in case the participant dies before the old age pension is granted.

    1. The first option is to add their accrued 2nd pillar pension capital to the 2nd pillar pension capital of a person designated by the participant. Only one such person may be designated and they also must be a participant of the 2nd pension pillar. If the person designated is not a participant of the 2nd pension pillar on the day of death of the designating person, then the accrued capital will be inheritable according to the procedure laid down in the Civil Law.
    2. The other option is to make the 2nd pillar pension capital inheritable under the Civil Law. After completing the set procedure and submitting documents to notary public (and assessment of the documents), the inherited 2nd pillar pension capital will, at the option of the heir, be either added to the 2nd pillar pension capital of the heir or transferred to the heir’s current account (in euro). If the heir is not registered in Latvia or is a legal entity, the inherited amount will only be received in the heir’s current account. Heirs may lay their claim within 10 years of the day of death of the participant. If no heirs lay claim during that time period, the capital will be transferred to the state pension special budget.
    3. The third option is to transfer the accrued 2nd pillar pension capital to the state pension special budget. In such an event the capital will be taken into account in calculation of the breadwinner loss pension for persons who were in the care of the deceased participant.

    Inheriting of the capital or adding it to the pension capital of the designated person will be subject to some limitations

    • Firstly, inheriting of the capital or adding it to the pension capital of the designated person in its entirety will only be possible for the capital accrued starting from 1 January 2020; the accrued funded pension capital registered as of 31 December 2019 will be possible to be inherited or added to the designated person’s capital only to the amount of 80%. 20% of that capital will be transferred to the state pension special budget.
    • Secondly, if a 2nd pension pillar participant dies before reaching the pension age and none of the accrued capital inheritance options had been chosen or if the accrued capital does is below 35% of amount of the state social security benefit (currently, 38.15 EUR), the capital will be transferred to the state pension special budget.

    Good to know

    • The 2nd pension pillar participant will be allowed to change their choice an unlimited number of times.
    • The application on using the 2nd pillar pension capital in case of their death may be submitted by the participant to the State Social Insurance Agency (VSAA) starting from 1 January 2020 via portal www.latvija.lv or by sending it to the VSAA electronically with e-signature and time stamp or in person at VSAA customer service centres.
    • One can find out the amount of their accrued 2nd pillar pension capital at the portal www.latvija.lv using the e-service “Account statement of a participant of the state-funded pension scheme” or at VSAA customer service centres.
    • More detailed information is available on the website www.vsaa.gov.lv provided by VSAA.

    Upon old-age retirement, the capital accrued under 2nd pension pillar may be accessed:

    • by adding the pension to the capital accrued under the 1st pillar and receiving pension payments under both pillars each month together, or
    • by taking out life pension insurance policy (‘life annuity contact') where the capital accumulated under the 2nd pension pillar is entrusted with an insurance company of your choice and the pension is paid from the 2nd pillar with set regularity (on a monthly, quarterly, annual basis).

    In both cases payout of the requested pension continues in the agreed amount until the end of the participant's life.

    A beneficiary, who may be any person, can be named in the life annuity contract. From the day of death of the insured person (‘the annuitant') until the end of the guaranteed annuity payout period, the beneficiary is paid the annuity that the annuitant was entitled to.

    Further information on payout of 2nd pillar pension is available from the State Social Insurance Agency (VSAA).

    Starting from 1 January 2020, 2nd pension pillar participant who has not yet claimed an old age pension will be able to choose one of the three options for using their accrued capital which will take effect in case the participant dies before the old age pension is granted. More detailed information is available in the section About inheritance.

    Service Price
    Using
    Fees from savings (per year): Pension investment plan
    1990+ 1980+ 1970+ Dynamics Stability Dynamics Index
    - Invariable remuneration 0.42% Including invariable remuneration:
    - to the asset manager 0.34%
    - to custodian bank 0.08%
    0.42% Including invariable remuneration:
    - to the asset manager 0.34%
    - to custodian bank 0.08%
    0.42% Including invariable remuneration:
    - to the asset manager 0.34%
    - to custodian bank 0.08%
    0.42% Including invariable remuneration:
    - to the asset manager 0.355%
    - to custodian bank 0.065%
    0.39% Including invariable remuneration:
    - to the asset manager 0.31%
    - to custodian bank 0.08%
    0.30% Including invariable remuneration:
    - to the asset manager 0.22%
    - to custodian bank 0.08%
    The fee is deducted automatically from the accrued amount.
    - Variable remuneration to the asset manager up to 0.05% up to 0.05% up to 0.05% up to 0.05% 0% 0% The amount of the variable remuneration depends on the pension plan management result and is calculated as set forth in the state-funded pension law.
    Switching the plan Free of charge
    Closing
    Switching the management company Free of charge

    Effective from 01.08.2022.

    If you have any further questions, don’t hesitate to sign up for a remote consultation at a time convenient for you.

    Sign up

    About pension plan

    Swedbank Investment Plan 1990+

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    years return*

    0.00


    • If you were born in 1990 and later, or
    • If the goal is to create as big savings as possible while assuming high investment risk
    • If you wish the plan’s investment risk to gradually decrease depending on your age

    Swedbank Investment Plan 1980+

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    years return*

    0.00


    • If you were born during between 1980 and 1989, or
    • If the goal is to create as big savings as possible while assuming high investment risk
    • If you wish the plan’s investment risk to gradually decrease depending on your age

    Swedbank Investment Plan 1970+

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    years return*

    0.00


    • If you were born during between 1970 and 1979, or
    • If the goal is to create as big savings as possible while assuming high investment risk
    • If you wish the plan’s investment risk to gradually decrease depending on your age

    Dynamics

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    years return*

    0.00


    • If you are younger than 60 years or
    • If you are ready to take an average risk of your investments

    Stability

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    years return*

    0.00


    • If you are older than 60 years or
    • If you do not want to risk with your money

    New! Dynamics Index

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    • If you’re up to 50 years of age or
    • If you are ready to take an high investment risk
    • If you wish to invest by closely following stock market indexes**

    *Source of return data is quarterly report of respective Pension Plan for 1st quarter of 2022.
    **The investments of plan are made in accordance with sustainability criteria, which may lead to deviation of actual investments and difference in volatility of the investment plan compared to the composition of the global developed countries stock market index, which does not apply sustainability criteria.
    Funds designed specially for born in the certain decade, allow a more active investment strategy. Funds are suitable also for participants with appetite for higher investment risk.
    The investment risk of funds gradually decreases depending on the savings time horizon. Funds strive to create as large savings as possible for the old age, while maintaining investment safety as the time of withdrawing the funds approaches.
    At the start of funds, the permitted weight of exposure to equities will be up to 100% whereas closer to the date of exiting funds will fluctuate between 0 and 25% in order to achieve optimum investment performance throughout the saving period.

    Funds manager "Swedbank Ieguldījumu Pārvaldes Sabiedrība" AS, funds holder "Swedbank" AS, address: Balasta dambis 15, Rīga, LV-1048. 2nd pension pillar plans' catalogues and operating results are available: www.swedbank.lv

    The current demographic situation suggests that we have to reckon with the fact that our future pension could be even only half of what we earn today in salary.

    Children grow up so quickly! Seems like just a moment has passed and all of a sudden your darling is applying for college and want to start an independent life.

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