The Third Pillar

Start saving today

The most useful way of saving for the long term

  • You may get a 20% tax rebate on your contributions.
  • You can increase and decrease the amount you pay and suspend payments for a certain period.
  • Third pillar is your personal asset and if necessary you can withdraw it before retirement.

The pension third pillar regular investing campaign is over and the winners of €1000 pension bonuses are Airi T, Kristel R, Heino U and Ülle M

To start, calculate how much income tax it is possible to get back

Monthly payment
Accrual period

*This calculation is an example and based on the 20% income tax rate valid in 2018. Income tax will be refunded from third pillar pension contributions that are up to 15% of your gross income but not more than 6,000 euros per calendar year. Income tax from the contributions will be refunded to you if you submit an income tax return. You will only be able to gain a refund on third pillar pension payments if you have concluded the respective transactions yourself.

Contributions per year
360EUR
Total contributions in savings period
360 EUR*
Income tax rebate in savings period
72 EUR*

Why contribute to the 3rd pillar?

  1. Tax incentive

    The 3rd pillar is the only option for long-term saving that the state supports with a tax rebate. This means you may get the income tax back on contributions to the 3rd pillar. Income tax will be refunded from third pillar pension contributions that are up to 15% of your gross income but not more than 6,000 euros per calendar year. Calculate tax refund

  2. You are saving for your future

    Third pillar is your personal asset and if necessary you can withdraw it before retirement. When withdrawing the assets you need to consider current tax system and that the valid rate of income tax will be deducted from the payments. Read more

    Starting from the age of 55, if you’ve been contributing to the 3rd pillar for five or more years, the income tax rate is much more favourable when you withdraw money – just 10%. The same rate applies if you’re incapacitated and unable to work. Lifelong payouts are not subject to income tax.

    Withdrawal from third pillar is considered as your yearly income and it may influence your tax-free amount. Lifelong payouts are not subject to income tax and not considered as your yearly income.

  3. Bigger pension

    On average, people in Estonia enjoy a retirement of 20 years. By saving you can influence the size of your income in the future. It’s recommended that you also put aside 10-15% of your income on a regular basis. According to various studies, the pension you receive during your retirement should be 65-70% of your existing income if you want to continue enjoying your current standard of living. It’s been estimated that the first two pillars make up around 40% of the income you’ll receive during your retirement. We recommend you to start saving as early as possible.

Choose the right 3rd pillar solution for you

Pension Insurance+

V-Funds

Income tax rebate
Partial guarantee on contributions
Possible to choose risk level
Possible to indicate beneficiary
Securities account required

Enter into agreement

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Choose V-fund

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To find the right 3rd pillar savings option for you, fill in this risk questionnaire.

Investment Helpline