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What is the Lifetime Pension?

The Lifetime Pension Insurance is a way to receive the capital accumulated in the 2nd pension pillar in a convenient way suitable to your needs during retirement years

  • Guaranteed pension pay-out until the end of your life
  • Pay-out of the pension will be adapted to your individual needs
  • An opportunity to take care of your loved ones by specifying the beneficiary who, in case of your death, will continue to receive your earned pension

The Lifetime Pension Insurance is a way to receive the capital accumulated in the 2nd pension pillar in a convenient way suitable to your needs during retirement years

Lifetime Pension

Reaching the State retirement age or in case of premature retirement, you have to make a choice of how to receive your capital accumulated in the 2nd pension pillar:

  • to add the accumulated capital to the funds of the 1st pension pillar and receive it together with the old-age pension;
  • to enter into the Lifetime Pension Insurance contract with an insurance company, under which the pension will be paid to your account.

From 01.07.2021. Lifetime Pension insurance services provided by SEB Life and Pension Baltic SE are no longer available.

Frequently asked questions

You may find out the amount of your accumulated capital at any branch of SSIA or by visiting the portal www.latvija.lv (selecting the report "Account Statement of the Member of State Funded Pension Scheme (2nd pension pillar)" under "E-services").

Currently, you can postpone the decision on the use of the accumulated capital of the 2nd pension pillar until 30 November 2021.

No, the procedures in effect in the country does not provide for such a possibility.

If you continue to work, but you have applied for the retirement pension (1st pension pillar), you can now postpone the decision on the use of 2nd pension pillar capital until 30 November 2021.

Yes, because the service is strictly governed by the laws of the Republic of Latvia, and the Lifetime Pension is protected by the guarantees of the Insured Protection Fund.

A person may withdraw from the contract within 15 days after entering into the Lifetime Pension Insurance contract. When the contract has come into force (starting with day 16), it is not possible to terminate the contract, change the terms of the contract or add capital to the State pension.

In this case, the account of the participant in the 2nd pension pillar is closed and the social insurance contributions are directed entirely to the 1st pension pillar. Once a year recalculation of the State pension is performed.

No, the Lifetime Pension Insurance contract may be signed with only one insurance company.

Personal income tax is withholding from each Lifetime pension payout:

A 20% rate for up to 1667 EUR per month
A 23% rate for an amount exceeding 1667 EUR per month
Payment of a Lifetime pension at a rate of 23% received less than once a month, may lead to over-tax (if the gross amount does not exceed 20,000 EUR per year).

A beneficiary can be any person chosen by the client of the Lifetime Pension Insurance. The beneficiary may be changed unlimited times during the guaranteed payment period.

It is the period during which the beneficiary, in case of death of the client of Lifetime Pension Insurance, continues to receive the pension intended for the client. The Lifetime Pension is paid to the beneficiary to the extent and regularity it is given in the Lifetime Pension Insurance contract.

The payment of the pension will be paid to the beneficiary in the same amount, as provided to the client of the Lifetime Pension Insurance.