What is II pillar?

Your income during your retirement could depend greatly on your 2nd pillar pension

  • The 2nd pillar pension is designed to reduce loss of income during your retirement.
  • Regular payments into a pension fund are deducted from your salary, with the state adding its own contribution.
  • The 2nd pillar pension is mandatory for everyone born in or after 1983. If you don’t select a pension fund when you start working, one will be chosen for you at random from among a range of conservative funds.
  • Find the right one for you from our broad selection.
Choose the fund

Important information about the 2nd pillar pension

  1. The purpose of a 2nd pillar pension is to reduce the deficit arising from a reduction in the 1st pillar pension and it may greatly affect your income after retirement.
  2. Investing in the 2nd pillar pension is done via regular payments depending on the amount of your salary.
  3. It pays to find a suitable 2nd pillar pension fund for you.

    • Funds with higher risk are better for younger people, since the saving period is longer.
    • Funds with lower risk are more suitable for older people for maintaining their pension savings before retirement.
  4. Those who invest in Swedbank’s actively managed funds (K4; K3; K2; K1) receive a notification when it is time for them to change fund. When you use the Life Cycle Fund, it is not necessary to change funds since its risk profile becomes more conservative with age. This means that you can stay in one fund for the entire saving period.
  5. Besides performance, always pay attention to fees. The fees of Swedbank’s pension funds are the best in Estonia in terms of actively managed funds (K4; K3; K2; K1).
Recommendation! It serves to keep in mind that the 1st and 2nd pillar pension may not be enough as they usually constitute about 40% of the salary before retirement. A good opportunity to increase your savings is to use the 3rd pension pillar with an income tax rebate.

Which 2nd pillar pension fund is the best for you?

Life Cycle Fund

K90–99

Actively managed funds

K4, K3, K2 and K1

Fund invests in Estonia and other Baltic States, among others
Monthly overviews of fund investments and results
Fund is actively managed
Fund invests mainly in indexes
Risk profile of the fund changes automatically with time

Choose the fund

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Choose the fund

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