"None of my time is spent on it because the bank carries out the investment transactions itself. Less risk of something going very wrong with the money."
II pillar
The II pension pillar is the easiest way to invest in your future and accumulate pension savings. The amount collected is heritable and you can withdraw it at your convenience. However, it would be wise to do this at retirement age, otherwise you will have to pay a 20% income tax.
Unique opportunity 4 = 10
The state still contributes 4% to the pool from social tax, but now you can choose whether you contribute 2%, 4% or 6%.
Rate of return of the pension funds
Simply keeping money in your account means you miss out on potential returns and the value of your money even decreases due to inflation. The average annual return of the II pillar pension funds has been 4.2%.
Long-term saving
Time is the best friend of a saver in the II pillar: a small amount each month will add up to a large sum decades later. Over a period of 10 years, at the current average salary, EUR 10,000 is accrued, to which productivity and compound interest are added.
Joining the II pillar is free and only takes a few minutes. It is just as easy to switch funds later.
Bring your II pillar to usWhy save at LHV?
Best rate of return
Our investment policy is to achieve the highest possible long-term rate of return. Over the past 20 years, LHV pension funds have performed the best in Estonia.
Firm management
The assets of LHV pension clients were better protected during the last major economic crisis. We will do our utmost to ensure that future economic shocks also have as little of an impact on savings as possible.
Green future
We were the first to launch an environmentally friendly fund with the aim of making the economy more sustainable. With your choice, you contribute to a greener future.
Support of Estonia
Out of the Estonian pension funds on the market, LHV’s funds are the most active in making investments in Estonia. We have our own large and capable local investment team.
Choose the right pension fund
At LHV, you can choose between seven II pillar pension funds. Whether you prefer diversified risk funds with different asset classes (XL, L, M), a high-risk index fund with the lowest possible costs (Indeks), believe in the world’s green transition (Roheline), or aim to preserve your money (S, XS) – our selection will certainly have a II pillar fund for you. When choosing a pension fund, you should consider the level of risk and the planned accumulation period. Also see the results of all Estonian II pillar funds.
Three easy steps to join the LHV II pillar
Log in to the self-service or use the My Pension app and submit your II pillar selection application.
Choose a suitable pension fund, exchange units and/or redirect payments.
That’s it. Today’s decisions can start earning money for your future.