3rd Pillar Pensions
What is 3rd Pillar Pension?
The 3rd pension pillar offers an opportunity of making voluntary savings for a well-off retirement. You may augment your state-provided pension capital through regular contributions, either individually or via your employer. The 3rd pension pillar capital is accumulated in the private pension fund’s pension plans and invested in financial markets. The amount of savings depends on the preferred pension plan.
Nordea pension plans for your retirement savings
Nordea Progressive Pension Plan:
- Up to 75 % of the funds of the plan are invested in equity – shares and other similar type investments. The remaining funds are invested in fixed income financial instruments – bonds and investments with credit institutions.
- This investment strategy would best suit clients that have nothing against material capital fluctuations and who expect a potentially higher capital return in long term perspective. This is a pension plan with a very dynamic investment strategy.
Nordea Balanced Pension Plan:
- Up to 25 % of the funds of the plan are invested in equity – shares and other similar type investments. The remaining funds are invested in fixed income financial instruments – bonds and investments with credit institutions.
- This investment strategy would best suit clients preferring safe and stable, though moderate capital increase.
Why Invest in Nordea 3rd Pillar Pension Plans?
- Resident income tax breaks of up to 25 % of the contribution amount if it does not exceed 10 % of the annual gross wage.
- Opportunity to choose between investing in one or both Nordea pension plans.
- Flexible contributions – the amount and frequency of contributions to the pension plans are unlimited.
- Safety – the funds are invested into licensed pension plans that are supervised by the Financial and Capital Market Commission.
- Possibility to receive accrued funds before the state-guaranteed pension – after reaching the age of 55 (the current retirement age in Latvia is 62 years).
- Capital accrued in 3rd pillar pension plans is inheritable.
Nordea 3rd pillar pension plans are administered by the Joint-Stock Company Nordea Latvijas atklātais pensiju fonds, Reg. No. 40103331798, Krišjāņa Valdemāra iela 62, Riga, LV-1013, managed by the Joint-Stock Investment Management Company Nordea Pensions Latvia, Krišjāņa Valdemāra iela 62, Riga, LV-1013. The assets holder is the Latvian branch of Nordea Bank Finland Plc.
Nordea reminds that the historic yield does not guarantee similar yield in the future.
