2nd pension pillar

You can withdraw your 2nd pension pillar savings once you apply for a state pension. As of 2024:

- To receive your saved capital, you must have reached the age of 64 years and 9 months.

- You must have worked for no less than 15 years.

Citadele is a good choice for your 2nd pension pillar for the following reasons:

1. High profitability. CBL Asset Management's plans have been able to show some of the best growth in savings.

2. Long-term success. Since 2003, the CBL Aktīvais plan has been the best in the 50 % share-based plan category.

3. Low commission fees. The CBL Indeksu plan has the lowest commission fee in Latvia: 0.08 % per year. In 2023, the plan also showed the best growth in value (22.83%), outpacing the Swedbank Dinamika Indekss plan by 2.89.

If you have not yet reached pension age, you cannot opt out of the 2nd pension pillar, as participation in the 2nd pension pillar is compulsory.

An index pension plan is managed using a passive investment strategy. This means that the plan invests only in the stock markets, and only in funds which mirror indexes. Regardless of the current financial market situation, the geographic distribution does not change. The passive strategy means relatively low costs and simplified investment management. The CBL Indeksu plan has the lowest commission fee in Latvia: 0.08%.

Changing your 2nd pension pillar investment plan and provider:

1. Change of provider

- Permitted once per calendar year.

If you have changed providers this year (for example, from one bank to another), you will be able to join CBL Asset Management next year.

2. Change of investment plan

- Permitted twice per year, as long as you change between plans offered by the same provider.

If you have not changed your investment plan this year, or if you have changed plans, but not providers, you can join CBL Asset Management.

CBL Asset Management's investment decisions are made by 13 experienced financial and investment experts. They carefully analyse the market and available options in order to ensure the optimal balance between risk and profit. Plus, CBL Asset Management also invests in assets linked with Latvia, supporting the local economy.

No, after your pension is issued, your 2nd pension pillar savings are added to your 1st pension pillar. When you purchase a Lifetime Pension insurance policy, your 2nd pension pillar savings are added to your policy. Read more about the Lifetime Pension here: https://www.citadele.lv/lv/private/lifetime-pension

The commission fee comprises two parts:

1. Fixed commission fee. A fixed amount set by the provider.

2. Variable commission fee. Depends on the results of the investment.

The amount of commission is set by the provider, but the maximum amount is limited by law. You can view each plan's fee in more detail in the plan comparison on our 2nd pension pillar page, which also includes the prospectus for each plan. The CBL Indeksu plan has the lowest commission fee in Latvia.

CBL Asset Management is a good choice for your pension provider for the following reasons:

1. All-encompassing range of services. The only company in Latvia that oversees pension savings as well as investment funds and individual portfolios.

2. Wide customer base. More than 200,000 customers trust CBL, and the total amount we manage comes to EUR 1.2 billion.

3. The largest team of experts in Latvia. The largest team of investment and financial experts in Latvia, offering high-quality services.

There are several ways to find out your 2nd pension pillar savings.

1. Citadele online bank

Under: Pensions > 2nd pension pillar> Learn your accrued 2nd pillar pension funds

2. www.latvija.gov.lv

https://latvija.gov.lv/Services/9415

On the home page under E-services > Information and services > Request service. Log in with your authorisation device of choice, and you will see your 1st, 2nd and 3rd pension pillars.

You can compare the results of all 2nd pension pillar providers on the website manapensija.lv (https://www.manapensija.lv). It contains information about each plan's commission fee, as well as other information on pension pillars.

Pension calculations are made by the State Social Insurance Agency (SSIA). You can view a more detailed formula for calculation on the SSIA website.

Yes, your pension is subject to personal income tax, just like your salary. As of January 1, 2020, the non-taxable minimum on pensions is 300 EUR. The portion of your pension over this threshold is subject to a progressive income tax:

- Pension portion up to 300 EUR: 0% tax rate.

- Pension portion between 301 EUR and 1667 EUR: 20 % tax rate.

- Pension portion between 1668 EUR and 4583 EUR : 23 % tax rate.

- Pension portion over 4584 EUR: 34.1 % tax rate.

The 2nd pension pillar is a system in which 6 % of your gross salary every month is paid to your chosen pension provider. These savings are managed with the aim of increasing the pension you receive when you retire.

To apply for the 2nd pension pillar, there are several options.

1. Citadele online bank

Under: Pensions > 2nd pension pillar > Sign up at latvija.lv.

2. www.latvija.gov.lv

https://latvija.gov.lv/Services/25726

On the home page under E-services > Information and services >

Request service. Log in with your authorisation device of choice,

and you will see your 1st, 2nd and 3rd pension pillars.

Select 2nd pension pillar > See more > Current provider > Change. Change the CBL plan from the list which is best suited to your age and interests, and press Submit.

Yes, as of January 1, 2020, 2nd pension pillar participants who have not yet requested their state pension have the right to choose how their savings are used if they die before reaching pension age. There are three options:

1. Pension savings are transferred to the special state pension budget. The savings are given to current pensioners.

2. The savings are inherited by a specific person. The savings are added to the 2nd pension pillar of that person, allowing them to receive a larger pension when they retire.

3. The savings are inherited according to the Civil Law. The savings are passed on to your heirs (next-of-kin or as stated in your will) who can choose to withdraw the money or add it to their 2nd pension pillar.

To ensure that your savings are inherited, you must submit your wishes electronically to the State Social Insurance Agency through the latvija.gov.lv site.

Yes, you can leave your accrued 2nd pension pillar capital to a beneficiary who is a citizen of another country, but only by the process stipulated in the Civil Law. This means that you must comply with the requirements of the law to ensure that your savings are inherited in accordance with your wishes.

You will only know your exact pension just before you retire, but you can obtain an estimate of your pension today using our pension calculator https://www.citadele.lv/lv/private/2nd-pension/#calculator

You can start participating in the 2nd pension pillar when you start work, and from the age of 15.