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About 3rd pension pillar

Calculation and assumptions

Description EUR
Accrued capital
Contributions, total
Profit
PIT refund in accrual period

The accrued supplementary pension capital becomes available upon reaching 55 years of age. Profit is indicated here before the withholding of personal income tax on interest income.

For calculations it is assumed that:

  • yearly contributions are less than 10% of yearly gross salary and 4000 EUR,
  • the personal income tax rate will not change during the accrual period,
  • the accumulation is made in one of the selected pension plans "Stability+ 25", "Dynamics+ 60", "Dynamics+ (USD)" or "Dynamics+ 100" with an average imagined yield of 2.31%, 4.31% or 6.31% respectively, after all fees mentioned in prospectuses.

The actual return of pension plans may differ from returns used in the calculations and historic yield is not a guarantee for an equivalent performance in the future.

Get back 20% of your contributions into private pension funds!

Please be informed that the Law on Personal Income Tax entitles you to a personal income tax refund in the amount of 20% for private pension fund contributions in 2021 of up to 10% of your gross annual salary in the taxation year and the aggregate limit of 4000 EUR.

Example!
Gross monthly salary: 600 EUR
Monthly contribution into pension fund: 30 EUR
Sum of contributions into pension fund per year: 30 * 12 = 360 EUR
Personal income tax refund: 360 * 20% = 72 EUR

To claim your refund for personal income tax, you need to file the annual tax return ('income declaration') with the State Revenue Service.

To save for retirement and to get a chance to use tax benefits, become a participant in the 3rd pillar pension scheme!

Withdrawal

When reaching the age of 55 you have the right but not the obligation to take out your accrued additional pension capital:

  • in a lump-sum payment
  • by parts over a longer period of time (the share of capital remaining in the pension fund continues to participate in the income derived from the made investments)

To take out your accrued additional pension capital You need to fill an application in the Swedbank Internet Bank or visit any branch of Swedbank. Additional pension capital will be paid out within 10 working days.

Additional pension funds are heritable

Accumulated pension funds are disbursed to the beneficiary mentioned in the agreement or are heritable according to the civil law.

How to supplement:

  • Regular contributions - Regular Investment - your chosen amount will be regularly transferred to your pension savings on your chosen date. Regular investment available in Swedbank internet-bank section: Pension / What is 3rd pension pillar? / Regular investment. Apply for here
  • Irregular or single contribution - Additional payment from your account. Additional payment available in Swedbank internet-bank section: Pension / What is 3rd pension pillar? / Additional payment. Make payment

Accounts for contributions and details for transfer from other bank:

Beneficiary: Account number of the pension plan: Registration number:
Swedbank pension plan Stability+25 LV19HABA0551004769650 40003606528
Swedbank pension plan Dynamics+60 LV47HABA0551004769825 40003606528
Swedbank pension plan Dynamics+100 LV03HABA0551015454488 40003606528
Swedbank pension plan Dynamics+(USD) LV91HABA0551004769809 40003606528
Beneficiary bank: Swedbank AS
Swift code: HABALV22

About payments:

  • Contributions into participants' individual pension accounts will be credited by the Pension Fund no later than the next business day after the day when the funds have been credited to the account opened for the retirement plan.
  • Each participant and payer can select a different asset investment policy or currency and make contributions to a number of pension plans at the same time.
  • Contributions to pension plans can be temporarily discontinued and then resumed!

Remember - the sooner you start your savings, the bigger pension capital you will save in the long-term!

Contributions on your behalf can be made also by your employer. Before contributions employer should be indicated in your Individual participation agreement as contributor or employer can conclude Collective participation agreement. In more detail about contributions from employer side please look here.

Opportunities for employees of European Community institutions

Employees of European Community institutions who have savings in the pension fund of European Community institutions can transfer it to 3rd pension pillar of Swedbank.

We offer favourable terms of receiving accumulated funds and convenient access to information about your savings via Internet banking.

If you have any questions please contact us by pensijas3@swedbank.lv or by calling 67 444 165.

Making contributions

The easiest way for the employer to make contributions into a pension fund for their employees is to use the Pension Payment (similarly to salary payments) option under “Payments” section on the Business Internet Banking site. When contributions are made using the Pension Payment option, the employer saves time as all contributions for employees can be made by importing a single file and transferring them in a single payment. To see an example of pension payment, click here. Before the Pension Payment option can be used, it needs to be enabled at any Swedbank branch and the company’s representative who will be able to do it must be specified.

Alternatively, the employer can make the contributions by a regular transfer, specifying in the payment details the employee’s forename, surname, identity number and personal pension account for which the contribution is being made in the pension fund. This is a convenient option in case of contributions for only a couple of employees.

If the number of employees is quite large and for some reason the Pension Payment option cannot be used, the employer can make a single transfer for all employees and, subject to prior arrangement, send the details about the contributions to Swedbank Atklātais Pensiju Fonds AS by e-mail to pensijas3@swedbank.lv, followed by the original of the details of contributions by post to Swedbank Atklātais Pensiju Fonds AS, Balasta dambis 15, Rīga LV-1048.

Information about solidarity tax

As already known, the income in excess of a gross salary of 55,000 euros per calendar year (or 4583 euros per month) is subject to the solidarity tax. A portion of this tax – 4% or 10% depending on whether or not the taxpayer is a pension 2nd pillar participant – can be applied towards the person’s 3rd pillar pension savings. Contributions of solidarity tax to the 3rd pension pillar are possible only from income earned in 2018.

The taxpayer only needs to open a 3rd pillar pension agreement, if not already opened, and submit an application to the State Social Insurance Agency (VSAA) for transferring a portion of the solidarity tax within 60 days of receiving a notification from VSAA. In the application, you need to specify:

  • the name of the private pension fund (Swedbank Atklātais Pensiju Fonds AS);
  • the name of the 3rd pillar pension plan (Swedbank Pension Plan Stabilitāte+25 or Swedbank Pension Plan Dinamika+60, or Swedbank Pension Plan Dinamika+100, or Swedbank Pension Plan Dinamika+(USD)).

The application may be submitted:

The application form is availablehere.

VSAA will transfer a portion of the solidarity tax to the private pension fund’s pension plan once a month, starting with the next month after receiving the solidarity tax payer's application. If the taxpayer does not submit this information to VSAA within 60 days, the contributions will be transferred to the state pension special budget without personification.

Fur further information about the solidarity tax, see www.vsaa.lv

With a good pension you’ll have all the possibilities!

We don’t know what you’ll want in your retirement. One thing we know for sure – with good savings you’ll have all the possibilities.

Start saving and make use of the 3rd pillar pension advantages:

Start saving Find out more

Calculation and assumptions

The accrued supplementary pension capital becomes available upon reaching 55 years of age. Profit is indicated here before the withholding of personal income tax on interest income.

For calculations it is assumed that:

  • yearly contributions are less than 10% of yearly gross salary and 4000 EUR,
  • the personal income tax rate will not change during the accrual period,
  • the accumulation is made in one of the selected pension plans "Stability+ 25", "Dynamics+ 60", "Dynamics+ (USD)" or "Dynamics+ 100" with an average imagined yield of 2.31%, 4.31% or 6.31% respectively, after all fees mentioned in prospectuses.

The actual return of pension plans may differ from returns used in the calculations and historic yield is not a guarantee for an equivalent performance in the future.

Majority of people expect their pension to be much higher than it will actually be. The earlier you start saving the easier your life in retirement will be.

To be eligible for the personal income tax refund, the contributions remain invested for at least the year in which they were made and in the following calendar year.
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  •  EUR
  •  EUR
  •  EUR
Calculation and assumptionsConclude an Agreement
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Balanced investment strategy
Plan currency - EUR

Suitable for you:

  • if you're older than 50 years or
  • if you do not want to risk with your money
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Balanced investment strategy
Plan currency - EUR

Suitable for you:

  • if your age is between 40 and 50 years or
  • if you are ready to take a partial risk on fluctuations of your investments
 { "chart": { "width": 280, "height": 280 }, "title": { "text": "Dynamics+100", "align": "center" }, "plotOptions": { "pie": { "dataLabels": { "enabled": false } } }, "legend": { "enabled": true, "layout": "vertical", "labelFormat": "{y}% {name}" } }

Active investment strategy
Plan currency - EUR

Suitable for you:

  • if you are younger than 40 years or
  • if you are ready to take a significant risk on fluctuations of your investments
 { "chart": { "width": 280, "height": 280 }, "title": { "text": "Dynamics+USD", "align": "center" }, "plotOptions": { "pie": { "dataLabels": { "enabled": false } } }, "legend": { "enabled": true, "layout": "vertical", "labelFormat": "{y}% {name}" } }

Balanced investment strategy
Plan currency - USD

Suitable for you:

  • if you want to make savings in U.S. dollars
  • if you are ready to take a partial risk on fluctuations of your investments

Before investing in a pension plan it is recommended to evaluate risks associated with investments, taking into account that, if Pension Plan invests more in shares and similar securities, then higher is risk that the value of pension plan investments may rise or fall in positive or negative direction. Pension plan for past performance is no profitability in the future.
3rd pillar pension plans offered by Swedbank are defined-contribution plans without guaranteed return and without the biometric risks covered. Swedbank does not offer defined-contribution plans with guaranteed return or defined-benefit plans.

Information on savings via Swedbank Internet banking

Information on the Internet banking page is updated daily.

Freedom of deposits

Amount and frequency of your supplements are up to you, however we advice to forward 5-10% of your monthly income to pension savings. That will allow for accumulating sufficient capital for your retirement days. The sooner you start regular supplements, the more you will be able to save.

How to make contributions?

Reliability

Investments are made only into licensed pension plans, that are being supervised by Financial and Capital Market Commission.

Making supplements

  • According to the law on Personal income tax you may receive a 20% personal tax refund for amounts transferred to private pension funds that do not exceed 10% of your annual gross salary , and the aggregate limit of 4000 EUR.
  • Before the 2nd of February the pension fund submits data about all pension deposits made in the previous calendar year, so you don't have to submit your payment orders yourself.
  • To receive the tax refund you have to fill in an Income statement and submit it to State revenue service. Find out more
  • To remain the tax refund in effect, contributions made by private individuals must remain invested in the savings for at least the year in which they were made and in the following calendar year.

Receiving the funds

  • Income from funds deposited in private pension funds (profit) is under a 20% tax.
  • You don't have to pay taxes for deposits made by private individuals.
  • Сontributions made employers not exceeding the amount of contributions made by employers are liable to the personal income tax 23%.
  • The tax from your additional pension capital will be withheld automatically by Swedbank Open Pension Fund at the moment of withdrawal.
Service Price
Receiving
Application acceptance Free of charge
Using
Setting up regular contributions Free of charge
Fees on contributions:
- To Financial and Capital Market Commission 0%
Fees on savings (per year) Pension plan
Stability + 25 Dynamics + 60 Dynamics + 100 Dynamics + USD
- To the pension fund 0.26% 0.26% 0.26% 0.26%
- To custodian bank 0.09% 0.09% 0.09% 0.09%
- To the asset manager 0.34% 0.34% 0.34% 0.34%
Change in the sum of contributions Free of charge
Pension account statement on Internet Banking site Free of charge
Switching the pension plan Free of charge
Closing
Payout of accrued amount Free of charge

Effective from 01.01.2020.

Assets of pension plans are invested in various financial instruments (e.g. bonds and stocks), and their return and price is affected by various events throughout the world.

Returns of pension plans are not guaranteed, and with time it may fluctuate both upwards and downwards and the accrued capital can be lower or higher than contributions made.

Pension savings are long-term savings whose value can fluctuate, but in the long-run a positive return is expected. Historical performance does not guarantee similar return in future.

To not only protect your accrual but also grow it, it is important not to change the pension plan for the long term. To react to short-term fluctuations in financial markets, direct investments in securities could be suitable.

When assessing which pension plan to choose, it is recommended to consider how it suits your abilities and risk appetite and the planned period of saving.

  • If the period is rather long, e.g. 20 years or more, an active plan can be considered (with a larger weighting of investments in stocks) as, although short-term fluctuations are possible, the return can be higher in the long-term.
  • If the saving period is shorter and the appetite for for higher return fluctuations is lower, a more conservative pension plan with a larger weighting of investments in bonds could be more suitable.

The pension plan can be changed, transferring the entire accrual or a part thereof, on the Internet banking site or at any Swedbank branch.

From the list, pick the needed pension plan, check and approve its change, and it will be done within 2-3 business days (free of charge).

After changing the pension plan, it is possible to continue to save in several plans or cancel the automatic contribution into the previously selected plan and make a new into another plan.

To receive the accrued capital, make an application on the Internet banking site or at any Swedbank branch.

You can apply for a disbursement of the entire amount or a part thereof. The disbursement will be done within 3-10 business days (free of charge).

After a full disbursement, you can continue contributing and saving or cancel the automatic contribution and close the individual pension account.

In order to receive resident income tax repayments, the contributions should be left invested in the year of making the contribution and also in the next calendar year.

Please remember that according to the Private Pension Funds Low, the capital accrued in the 3rd pension pillar can be received from the age of 55. The accrual can be withdrawn earlier in these cases:

  • if you work in a profession that has an earlier retirement age according to Cabinet Regulations 466;
  • if you have 1st group disability (for life).

From other pension fund

To transfer the accrued 3rd pillar pension capital from another pension fund to the Swedbank Open Pension Fund, you have to enter into the 3rd Pillar Pension Individual Participation Agreement with Swedbank, and it can be done on the Internet banking site or at any Swedbank branch.

After that, make an application to the another pension fund electronically or in person for transferring the capital to the Swedbank Open Pension Fund, providing the selected Swedbank plan name and account number:

Beneficiary Account number of the pension plan Registration number
Swedbank Pension Plan Stability+25 LV19HABA0551004769650 40003606528
Swedbank Pension Plan Dynamics+60 LV47HABA0551004769825 40003606528
Swedbank Pension Plan Dynamics+100 LV03HABA0551015454488 40003606528
Swedbank Pension Plan Dynamics+(USD) LV91HABA0551004769809 40003606528
Beneficiary bank: Swedbank AS
SWIFT code: HABALV22

To other pension fund

In order to transfer your accrued 3rd pillar pension capital from Swedbank Atklātais Pensiju Fonds to other pension fund in Latvia, conclude a 3rd pension pillar individual participation agreement with the pension fund to which you wish to transfer the capital.

Fill out the “Application for transfer of supplementary pension capital”. The application may be submitted at any Swedbank branch or electronically by signing it with eSignature and e-mailing it to pensijas3@swedbank.lv.

The capital will be transferred within 30 days (free of charge).

Fill out the application

The pension fund is under supervision by the Financial and Capital Market Commission (FKTK) and a certified auditor firm.

The cash, financial instruments and other assets of the pension plans are to be held, recorded and managed separately from the asset manager’s own assets and other assets under its management.

If the pension fund, asset custodian or the asset manager is declared insolvent or is liquidated, the pension plan assets may not be included in the property of the indebted pension fund, asset custodian or asset manager. The pension plan participant retains the right to the supplementary pension capital in their personal account.

Contacts

Useful

 

2nd pillar of pensions is a scheme funded by the government - opportunity to increase your pension by forwarding a part of your social insurance contributions to a professional funds manager, who then invests the funds into securities and operates to make profit.

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.

Feeling confident and safe in any life situation is possible if you have a sufficient financial safety net!

Pension plans offered by pension fund "Swedbank Atklātais Pensiju fonds" AS, Balasta dambis 15, Rīga, Latvija: "Stability+25", " Dynamics +60", " Dynamics +100" un " Dynamics +USD".
Funds manager "Swedbank Ieguldījumu Pārvaldes Sabiedrība" AS, funds holder "Swedbank" AS, address: Balasta dambis 15, Rīga, LV-1048.
3rd pension pillar plans' catalogues, investments policy and operating results can be found here.

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