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Selecting a Fund

Time to bring your pension back to home bank

The best place to save for pension

  • The lowest fees in Estonia. This way, you collect more money.
  • Excellent return. Our funds consistently perform among the best ones in Estonia.
  • Fund that suits your age. We help you choose a suitable fund and let you know when it is time to change it.
  • Sustainability. We make sure that your money contributes for a greener future.
  • Beneficial 2 + 4 scheme. You contribute 2% of your gross salary, to which the state adds 4%.
NEW: Swedbank II pillar index fund

Is the new index fund for me?

  • The new index fund will follow all of stock market’s ups and downs.
  • The fund will invest similarly to K1990-1999 fund but will remain fully invested in stocks.
  • If Your investment horizon exceeds 10 years, this fund could be considered.
  • Fund’s 0,33% expense ratio, lowest in Estonia, means that you get to keep lion’s share of the potential returns.
More about the fund

Pension Funds

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This is new fund, which is why long term return could not be displayed yet.


  • Index fund
  • Current annual fees: 0.33%
  • Risk level: 6/7
  • Sustainable Finance Class: light green Among other goals, fund also follows environmental, social and governance (ESG) targets.

Suitable:

  • if you have at least 10 more years of pension savings;
  • if you want your pension fund to follow global equity market trends and you have a relatively high risk tolerance.

More about the fund

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  • Index fund
  • Current annual fees: 0.33%
  • Risk level: 5/7
  • With a life-cycle strategy, therefore suitable for the entire saving period.

Suitable:

  • if you were born between 1990 and 1999;
  • if you want the fund to invest in line with your age so that you do not have to worry about changing funds in the future.

More about the fund

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  • Actively managed fund
  • Current annual fees: 0.66%
  • Risk level: 5/7
  • Sustainable Finance Class: light green Among other goals, fund also follows environmental, social and governance (ESG) targets.

Suitable:

  • if you are up to 49 years old;
  • if you have a relatively high risk tolerance.

More about the fund

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  • Actively managed fund
  • Current annual fees: 0.65%
  • Risk level: 4/7
  • Sustainable Finance Class: light green Among other goals, fund also follows environmental, social and governance (ESG) targets.

Suitable:

  • if your age is between 50–56;
  • if you have higher risk tolerance than average.

More about the fund

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  • Actively managed fund
  • Current annual fees: 0.66%
  • Risk level: 3/7
  • Sustainable Finance Class: light green Among other goals, fund also follows environmental, social and governance (ESG) targets.

Suitable:

  • if your age is between 57–62;
  • if you have moderate risk tolerance.

More about the fund

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  • Actively managed fund
  • Current annual fees: 0.37%
  • Risk level: 2/7
  • Sustainable Finance Class: light green Among other goals, fund also follows environmental, social and governance (ESG) targets.

Suitable:

  • if you are at least 63 years old;
  • if you have low risk tolerance.

More about the fund

*Pension fund return on an annual basis as of 31/12/2021.

The II pillar is your personal reserve of funds, helping you to ensure a more carefree retirement age.

In the II pillar your money is invested. This gives you the chance to grow your money for retirement.

Accumulation in the II pillar takes place in the form of automatic monthly payments and based on your remuneration.

The monthly payment of the II pillar is only a small part of your salary, but if you collect it over the years, it provides a significant reserve.

The II pillar accumulates money according to an efficient 2 + 4 scheme: you put in 2% of your gross salary and the state provides 4% from its part. This is how your personal pension pillar is accumulated, from which you can earn extra money in addition to your state pension in the future.

The current average old-age pension provided by the state is 550 euros. However, this is not enough for a carefree life. Therefore, more than 500,000 people are already accumulating extra money in their II pillar.

The money you accumulate in the II pillar is your personal assets that grows with the rise of financial markets. In addition, the II pillar can be inherited.

It is convenient to accumulate your pension with Swedbank.

  • Our funds have the lowest fees in Estonia. This way, you accumulate more money.
  • Excellent return. The rates of return of our pension funds are consistently among the best. You can track the return of the pension funds on the website of Pensionikeskus.
  • We make sure that you accumulate your money in a fund suitable for your age. In the correct fund, your pension can grow sufficiently.
  • Your pension is looked after by experts in their field.
  1. Choose a fund that is suitable for your age.
  2. Submit an application in the Internet Bank to direct your monthly contributions and transfer already accumulated pension assets to suitable fund.
  3. Contributions will start going into the selected fund the following month.
  4. Pension assets accumulated are transferred three times a year

    When you submit an application to transfer previously collected assets to new fund between:

    • 1. August – 30. November, exchange takes place on the first working day of January;
    • 1. December – 31. March, exchange takes place on the first working day of May;
    • 1. April – 31. July, exchange takes place on the first working day of September.

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. We believe that sustainable investments in pension funds are more resilient to the shocks such as financial crisis or pandemic.

  1. Follow your values by choosing a pension provider with sustainability ambitions. As of March 2021 Swedbank pension funds have invested:
    • 400 mEUR into green bonds or bonds screened under sustainability criteria;
    • 360 mEUR into other funds following ESG factors;
    • 570 mEUR into shares screened under sustainability criteria.
  2. Sustainable pension funds exclude damaging industries. Swedbank has a “blacklist” for companies in which we don’t invest. You can be sure that your money does not support weapons industry, coal mining or human rights violations.
  3. You can always check if your pension provider is paying attention to sustainable investments. Read about our Responsible Investment Policy here.

Investors are actively directing money to sustainable funds.


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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

Source: World Federation of Exchanges

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.

Our following funds comply with the principles of sustainability: II Pillar Index, K100, K60, K30, K10, III Pillar Index, V100, V60, V30, V100 Index, V60 Index, V30 Index.

When you retire you have three options to start using your money.

  • Regular payouts, i.e. fund pension. If you set a period for payouts, which corresponds to your life expectancy, then you are able to use the money with a 0% income tax rate. For a shorter period, the income tax is 10%.
  • One-off payout, on the amount of which you have to pay 10% income tax.
  • Whole life insurance contract or insurance for a specified term.

You will already be able to withdraw money on more favourable terms 5 years before retirement. In case of no work ability, you can withdraw money tax-free.

If necessary, you can opt out of the II pillar and withdraw the accumulated amount before retirement age. Financially, this is a harmful decision for you.

Calculate the opt out cost

The assets you accumulate in your II pillar are fully inheritable.

It is up to the heirs to choose whether to withdraw the accumulated money or to inherit the fund units, which will be transferred to their pension accounts. These options can also be combined: to withdraw part of the money and transfer part of the fund units to a pension account.

If the heirs decide to withdraw the money that has been saved, they will have to pay income tax on the amount.

In order to inherit the investment units, an application and a succession certificate should be submitted within 10 years of the opening of succession.

Legal heirs can apply for the redemption of inherited investment units.

Together, the I and II pillar account for around 40% of pre-retirement income. An excellent option to save extra is the III pillar with income tax incentive. You can save money in a subtle and smart way. For example, when paying with a bank card in a shop.

Fees of Swedbank pension funds are favourable

Pension fund Current fees
K1990–1999 index fund 0,33%
K10 0,37%
K30 0,66%
K60 0,65%
K100 0,66%

Fees as of 01.08.2021. You can view the current fees of all funds provided in Estonia on the website at www.pensionikeskus.ee.

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