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Sodra more than 30 thousand. The population repeatedly sent messages to personal accounts and a third of them also sent emails. mail, on inclusion in the accumulation of pensions and options.
In January, more than 900 residents had already signed new second-pillar pension accumulation contracts. 140 of them were included in the accumulation of pensions, but they decided to sign a contract with the accumulation company chosen now, without waiting for July.
1,600 residents decided to refuse to participate in the accumulation by applying to Sodra through a personal account.
The remaining residents have yet to read Sodra’s report or will make a decision later. Sodra will send registered letters to those residents who do not read the notice about the inclusion in the personal account of the second pillar in the personal account www.sodra.lt/gyventiui before April, so that the information reaches everyone. A total of 34 thousand people were included again in the accumulation of pensions of the second pillar this year. population.
When choosing to participate in the second pillar pension accumulation, it is important to know how contributions are paid and what benefits the participants of the second pillar pension accumulation will receive, what benefits will await them in old age. Here are five important things that can help you make a decision.
What if I don’t have the money to pay the contributions?
Residents pay the second pillar pension contributions from their insured income; the funds are transferred by the employer, along with other contributions to social security. In this case, if the resident’s income drops significantly or he loses his job, lower contributions are transferred to the pension accumulation fund or not paid at all.
Residents can also temporarily suspend payment of second pillar pension accumulation contributions for a maximum period of 12 months during the entire accumulation period. It is worth stopping the payment of contributions when a person receives income, but needs funds for other purposes. It is not worth suspending the payment of contributions in case of job loss, because contributions are not paid when a person has no income.
Why can’t I withdraw the full amount at once?
Pension accumulation participants accumulate for retirement. The second pillar of pensions is part of the pension system, and the state encourages accumulation in it, adding funds from the state budget to each accumulator. The purpose of the pension system, as well as the accumulation of second-pillar pensions, is to guarantee a person’s regular income in old age, no matter how long they live. The accumulation of second pillar pensions should guarantee a higher pension: the income that an older person receives each month.
If you want to save an amount that you can use at any time, it is recommended to choose other forms of savings.
The benefits for today’s pension annuity recipients seem small compared to a retirement pension
Currently, more than 200 people of retirement age receive pension income and the average benefit is around € 70 per month. However, the accumulation of pensions currently lasts only 17 years, when, in comparison, the population pays social security contributions for the old-age pension on average for 38 years. Thus, much of the currently retired population has not yet managed to accumulate a significant amount.
The longer one participates in the accumulation of second-pillar pensions, the more clearly the amount accrued grows. As the income of the population increases, the population and the state transfer an increasing amount of funds to the accounts of the pension accumulation funds, and the accumulated wealth also increases with the return on investment.
The longer a resident participates in the accumulation of the second pillar pensions, the higher the amount they accumulate, the greater the complement to the pension that can be expected. You can find out what pension annuity benefits to expect using the calculator: www.sodra.lt/lt/skaiciuokles/pensiju-anuitetu-skaiciuokle
Which is more profitable, the accumulation of pensions of the second pillar or the old-age pension of Sodra?
The accumulation of second-pillar pensions complements the Sodra old-age pension. It is not necessary to choose between these pensions, since the participant of the second pillar pension accumulation will also receive a minimum old-age pension from Sodra.
The participation in the accumulation of pensions of the second pillar does not influence the amount of the old-age pension. Only contributions from his salary and an incentive from the state budget are transferred to the resident’s account in the pension fund. You can find out which pension is planned for you using the calculator: www.sodra.lt/lt/skaiciuokles/prognozojami_pensijos_skaiciuokle
Is it worth paying a second pension accrued for life if you will receive it in just a few years after retirement?
Residents often underestimate how long they will live when they reach retirement age. The average life expectancy at retirement age in Lithuania is around 20 years, and half of the elderly live longer in retirement, although most believe they will not reach that age.
This also determines the amount of pension annuities paid by Sodra. The accumulated amount is distributed after the average life expectancy at retirement age, and if a person lives longer, he does not run out of income: he receives a retirement pension and pension annuity benefits from the pension fund for the rest of his or her life.
If a person does not reach retirement age, the entire amount accumulated in the pension fund is inherited.
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