What do you need to know about saving for retirement?

Meet your future secure!

Image your life now if your income was three times lower. Unfortunately, this can happen when you retire. According to the forecasts, the average state social insurance (SODRA) pension will comprise only 30% of your pre-retirement income. To be comfortable in retirement, you need at least 70 to 80%. You can achieve this goal with participation in all three pillars. Find out how to do it.


It is the average state social insurance pension if you have the qualifying period (November 2021).

3 steps to accumulate a bigger pension

  • 1st pillar

    SODRA benefits for people with state social pension insurance after they have acquired the required length of service (qualifying period) and reached the retirement age. The amount of SODRA pension depends on the ratio of workers to retirees, as well as the economic situation.

  • 2nd pillar

    When accumulating in a 2nd pillar pension fund, the investment strategy changes based on client’s age. After signing a pension accumulation agreement, monthly contributions are

    transferred automatically. Accumulation receives a share of your salary plus the State’s incentive contribution.

  • 3rd pillar

    Supplementary voluntary accumulation in 3rd pillar pension funds, using your personal assets. You can simultaneously accumulate in several funds or even in several companies. Contributions may be paid at your convenience or periodically via your electronic bank account.


    * Assumptions for the calculations can be found at the bottom of the page.

SODRA pension will not be enough? Accumulate additionally! We invite you to a consultation


I want a bigger pension

Why is it worth accumulating in pension funds?

Dignified retirement

The long-term effect of investment allows us to expect to overtake inflation and accumulate more than when just saving. As markets rise, interest-earning assets start growing, so the total amount increases not only from the amount contributed, but also from the interest earned. Therefore, the earlier you start accumulating and the longer you do it, the more you can save for your retirement.


The State contributes, too

Just because you accumulate in 2nd and 3rd pillar pension funds, the State offers you some benefits. If you participate in maximum accumulation in a 2nd pillar pension fund, the State contributes over €235 a year. In addition, every year participants in the 3rd pillar can get up to €300 of the personal income tax refunded. If you reinvest the refunded personal income tax and the annual after-tax return is 5%, the State’s contribution to your pension accumulation would be up to €34,000 over 30 years.


Pension is accumulated in separate 2nd and 3rd pillar accounts. All assets in pension funds are inheritable. Upon retirement, the assets or part of the assets accumulated in the funds will also be inheritable. Inheritance will depend on the pension pillar, the amount accumulated in the fund and the chosen method of payment.

3 tips to consider when saving for retirement?

Set aside at least 10 to 15% of your income

Have you decided to save for the future? First, decide what pension you want. If, as recommended by financial experts, you expect to receive 70 to 80% of your former income, it is best to accumulate in both 2nd and 3rd pillar pension funds. It is estimated that a person under 30 needs to set aside 10% of their income, from the age of 30 – about 15%, and more, if you decide to save for your retirement at the age of 40. Talk to your financial advisor about how much to set aside for saving.

Start as early as possible

Over time, money can depreciate, so it is wiser not only to save but also to invest. The longer you allow your money to “work” in a pension fund, the more you can expect to save for your future.

Why? Everything comes down to the compound interest effect: the interest is earned not only on the amount contributed to the fund, but also on the interest earned. In other words, your assets in the fund consist of contributions, interest and interest-on-interest. The longer you accumulate, the bigger amount you have.

Make the most of State benefits

The Government supports those who care about their future. If you accumulate in both the 2nd and 3rd pillar pension funds, every year the State can add over €535 to your accumulation! How does it work?

Do you accumulate in the 2nd pillar to the maximum? Every month the State will contribute 1.5% of the national average wage, which is over €235 a year.

Do you accumulate in the 3rd pillar? The State will apply a personal income tax benefit. You will be able to get up to 20% or up to €300 per year refunded!

Making a pension accumulation agreement online – it’s easy!

Register for a consultation or sign the agreement online

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Join the INVL self-service portal and keep track of your accumulated assets.


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Why is it worth accumulating with INVL?


We have been steadily working and growing since the launch of the pension system in 2004. Client assets are taken care of by investment professionals with more than 10 years of experience and international recognition – our team are one of the largest and most experienced teams in the region.


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We work exclusively with investment, so we pay special attention to your pension funds. This is also proved by our achievements – at the end of 2018, the INVL MEZZO II 53+ fund received the International IPE Award!




You can become an INVL client online – it only takes a few minutes and no need to come to the office. By the way, we provide accumulation reports to our clients even four times a year.


INVL self-service


The ABC of accumulation: how to choose

a pension accumulation company?

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Trying to choose between the 2nd and 3rd pillar?

Which is better: a 2nd or 3rd pillar pension fund? Both 2nd pillar and 3rd pillar are necessary to secure a higher pension benefit. Have any questions? Come for a consultation!

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What else should I know?

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Important to know


Choose a pension fund responsibly and carefully. Before signing a pension accumulation agreement for accumulation in 2nd and/or 3rd pillar pension funds, pay attention to investment risks and applicable deductions. Carefully read the rules of the pension fund, which are an integral part of the pension accumulation agreement.


Investing in 2nd and 3rd pillar pension funds involves investment risk. The value of a pension fund can go both up and down, and you can get back less than you invested. Past performance of a pension fund does not guarantee the same results and profitability in the future. Past performance is not a reliable indicator of future results. You are responsible for your investment decisions regarding pension accumulation. Before you make an investment decision, assess all the risks associated with the investment yourself or with a help of investment consultants.


Please remember that for participants in 2nd pillar pension accumulation, the state social insurance retirement pension for the period prior to 31 December 2018 is proportionately reduced as established by law, except for persons participating in pension accumulation prior to 31 December 2018 who between 1 January 2019 and 30 June 2019 exercise their right to terminate pension accumulation and return the accumulated money to SODRA – reduction of the state social insurance age-old pension will not apply to such persons. SODRA pension will not be reduced for those participating in 2nd pillar pension accumulation as of 2019. The additional State contribution does not reduce the amount of the retirement pension.


All the information presented is of a promotional nature and cannot be construed as a recommendation, offer or invitation to accumulate assets in pension funds managed by INVL Asset Management. The information provided here cannot serve as a basis for any subsequently concluded agreement. Although this information of a promotional nature is based on sources which are considered to be reliable, INVL Asset Management is not responsible for any inaccuracies or changes in the information, or for any losses that may incur when investments are based on this information.


* The calculations are purely illustrative, prepared on the basis of information and forecasts by the Lithuanian Ministry of Finance, Statistics Lithuania, SODRA and the European Commission, as well as on the basis of certain general assumptions. The example provides calculations for information only, showing the indicative amounts of a future pension benefit that have been projected based on the assumptions below. Calculations are not the most reliable indicator of future results. Calculations of the accumulated amount are based on the following assumptions: a person is 30 years old, while the retirement age is 65. The salary earned at the time these calculations were being made (January 2019) corresponds to the national average wage, which is €1,124 “on paper” or €722 after taxes. The person participates in maximum accumulation in a 2nd pillar pension fund, i.e. contributions consist of 3% of the participant’s income, from which the state social insurance contributions are calculated, plus the State’s contribution of 1.5% calculated from the national average wage and paid from the State budget. A monthly contribution to a 3rd pillar pension fund is €71. The annual net investment return on the 3rd pillar is 6.85% (based on historical market performance after the deduction of a 0.8% management fee; actual management fees are specified in the rules of the respective pension fund), and 5.07% on the 2nd pillar (taking into account the declining proportion of shares and increasing proportion of bonds). The average annual wage growth is 4.5%. A pension benefit is calculated on the assumption that the person will purchase the same annuity as in the 2nd pillar for the amount accumulated in a 3rd pillar pension fund. Pension annuity is calculated on the basis of the data received from SODRA and certain assumptions (in 2053, the average life expectancy of a retired person is 22.5 years, the conditions for concluding an annuity agreement include 2.5%, and the annuity return on investment is 2%). The calculations use nominal rates of return, without taking into account the effect of inflation on the purchasing power. Also, possible demographic changes, legal changes and other circumstances not explicitly mentioned above are excluded. The present value of money is calculated taking into account a 4.5% wage increase.