2nd pension pillar

Why are we making changes?

Our goal is to make the choice of pension funds simpler, clearer, and better suited to clients’ needs. Therefore, we have reviewed the fund names and structure to make selection easier and allow you to quickly find the most suitable solution.

• Simpler choices and clearer names
  Fund names have been redesigned to be more intuitive and immediately convey the essence of the fund.
• More appropriate age groups and strategy descriptions
  We have tailored funds for different life stages, so they better match your needs and long-term goals.

Why were age groups revised?

Over time, we reviewed our pension fund offering and concluded that the current structure no longer fully meets participants’ needs and market developments. Considering both our fund strategies and the state-defined retirement age, we determined that participants can take on a higher level of risk for a longer period, potentially achieving greater returns.

Additionally, to make choices simpler and clearer, we have aligned age groups for both 2nd and 3rd pension pillar funds. This will allow you to:

• Compare strategies more easily,
• Better understand each fund’s suitability,
• Make an informed decision faster about the most appropriate solution.

What exactly will change?

Some fund names will have descriptive terms changed, and all fund names will include clearly defined age groups. These changes will help you navigate the offering more easily and choose the investment solution suitable for your current life stage.

How will changes affect existing clients?

If your chosen fund matches your age group, you don’t need to do anything – your fund will continue to operate.

What if you are in a fund that does not match your age group?

We encourage you to review whether your current 2nd pension pillar fund corresponds to your current age group.

An age-appropriate fund can help you achieve larger retirement savings, as investment risks and potential returns are better suited to your current life stage.

How often can I make changes to your 2nd pension pillar fund?

You can change both the investment fund and the manager:

• Once per year – you can change the manager;
• Twice per year – you can change the fund with the same manager.

To make changes, submit your choice via the portal latvija.gov.lv. Steps to apply for an SEB investment plan

 

The 2nd pension pillar is part of the three-tier pension system. Each month, 5% of your gross salary goes to the 2nd pension pillar. This money is invested in financial markets through the fund manager of your choice, with the aim of increasing it over the long term. Find out more (LAT) about the pension system.

You can find out who manages your 2nd pension pillar savings, which plan you have chosen and the amount of your savings at latvija.lv.

To join SEB investment plans, you don’t have to be a customer of SEB. Choose the most suitable plan for you above, by press the button “Apply” and proceed to the next steps at latvija.lv.

Choosing an age-suitable plan will make a big difference to the amount of your pension in the long term. 

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20+ years until retirement.
Active investing    

At the beginning of the savings period, you can take on higher investment risk by choosing plans that invest more in shares.

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10+ years until retirement.
Moderately active investing

While slowly approaching retirement age, you can reduce your investment in shares by choosing moderately active plans that also invest in bonds.   
    

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<10 years until retirement.
Balanced investing

Before retirement age, wait for the right moment and change your pension plan to a more conservative one, making the most of investments in bonds. This will help to better preserve your accumulated capital.

Contract fees are an important criterion for choosing a 2nd pension pillar plan – the lower the contract fees, the higher the proportion of contributions that go into savings (SEB contract fees are among the lowest in the market). But it is important to look at the plan as a whole: whether it is age-suitable, what its long-term profitability is, where the investments are made and other aspects. 

For actively managed plans (for example, SEB dynamic plan) the fund manager actively monitors market trends and makes changes to the investment strategy to achieve better results.

For passively managed plans (for example, SEB index plan) the fund manager spreads investments across a wide range of companies without actively changing the investment strategy originally chosen.
 

Only licensed investment management companies, such as SEB Investment Management, can manage the 2nd pension pillar. The money management process is closely monitored by the Bank of Latvia and the pension plan’s custodial bank.