III Pillar

III pillar pension

A flexible and practical way to accumulate an additional pension – you contribute any amount, starting from 1 EUR, and as often as you want.

– State-promoted and expert-recommended method of accumulation. You can use income tax reliefe of up to EUR 300 per year.

– Achieve 70% or more of your former income.

– You are the owner of your accumulated funds and you will decide how much and how to withdraw the accumulated funds.

Pension calculator

Want financial stability in the future? Use our interactive and simple calculator, where you can check what kind of pension you can have in the future. You will also get recommendations on how to achieve a better result.

Frequently asked questions

How funds are accumulated?
Funds are accumulated in the pension fund of your choice by choosing the payment method of e-invoice contributions or by transferring contributions independently to your pension fund account.
How to pay my contributions?
The easiest way to make regular contributions is to use the functionality of e-invoices. Invoices will be sent regularly to the bank of your choice, and if you choose the automatic payment method, you will be sure that they will be paid on time. You can also pay the contributions yourself at any time by transferring the desired amount to your pension fund account.
How can I use tax benefit?
By declaring income once a year and indicating the amount of contributions paid to III pillar pension fund/s, it is possible to get a personal income tax benefit from them (up to 20% of contributions), which can reach up to 300 euros per year. This amount of tax relief is common to all contributions paid into II and III pillar pension products and unit-link life insurance products.
When can funds be withdrawn from III pillar funds?
You can withdraw funds accumulated in III pillar pension fund at any time. However, it is recommended to save for retirement and use the funds after reaching retirement age, as withdrawals earlier than 5 years before retirement age may require the return of personal income tax benefit, if you used it, as well as capital gains taxes. Always assess your personal tax situation.
Where do pension funds invest?
Pension funds invest in globally diversified equities and European bonds index funds and ETFs (exchange traded funds).
What is the difference between accumulation in III pillar and II pillar?
In II pillar, the contributions, which are calculated from the salary, are transferred to the pension fund by the employer and Sodra. If you decide to save in this way, you need to participate in II pillar until retirement age. During the entire period of accumulation, the funds are the property of the accumulater, which is also inherited. Funds are invested in a pension fund managed by a company chosen by the saver, making it possible to accumulate additional to Sodra pension. If you choose the maximum accumulation, the monthly payment is 3% from your salary, to which the state adds 1,5% from the countries average salary.

III pillar works on the same principle as II pillar, but it is a voluntary method of accumulation with more flexibility and less role of the state. The client decides how often and how much money to allocate. If necessary, the accumulation contributions can be temporarily suspended. During the entire period of accumulation, the funds are the property of the accumulater, which is also inherited. The state provides personal income tax benefit for up to 20% of contributions, which can reach up to 300 euros per year.
Why is it worth saving in III pillar pension funds?
If you are already participating in I pillar pension system (state social insurance pension) and in II pillar pension accumulation, the pension you will receive will only amount to about 45% of your current monthly income. This means that if you retired tomorrow, your income would not reach half of your current salary.

To maintain your lifestyle you are used to, your pension should be at least 70% of your current income. It is realistic to ensure this if you participate also in III pillar pension accumulation. You can do this at Goindex in any time, but we recommend to start as soon as possible.
What are the contract service fees?
There is an annual fund management fee of 0.60%.

There are no fees for changing funds within the Goindex company or switching your contract to another company.
Are funds accumulated in a III pillar pension fund inherited?
Yes, funds are inherited.
Is it possible to stop contributions to the III pillar pension fund if I have e-invoice payments?
Yes, you can suspend payments any time.
What is the minimum contribution in III pillar funds?
There is no minimum payment amount. You can accumulate by paying contibutions of your choice of amount. We recommend taking maximum advantage of the applicable personal income tax benefit. By declaring income once a year and indicating the amount of contributions paid to III pillar pension fund/s, it is possible to get a personal income tax benefit from them (up to 20% of installments), which can reach up to 300 euros per year (from up to 1500 euros annual contributions).
Where can I get acquainted with the pension fund's documents and reports?
All information is available on the Goindex website.
How are III pillar funds different from Life insurance unit-link products?
III pillar pension funds and life insurance unit-link are two different products.

1. Purpose. If the goal is to save for a pension with the lowest possible costs, then you should choose a III pillar pension fund. If the goal is to insure life and other risks with an additional opportunity to accumulate funds for the future, then life insurance unit-link product may be appropriate for you, as it is two products in one.

2. Fees. Accumulating funds in III pillar pension funds is almost always cheaper than in life insurance unit-link products. III pillar pension fund is a product specifically meant for saving for retirement, therefore its fees structure is usually simplified to a single fee – an annual percentage of the value of the invested assets (in the case of Goindex, this fee is 0.6%). Meanwhile, life insurance unit-link is a more complex product with a more complex fees structure – regular fees can be made up of several components, there can be various additional fees, such as termination fees, which are especially high at the beginning of accumulation, and others fees. You can find detailed information about life insurance unit-link products' fees on the Lietuvos bankas internet page.

3. Flexibility. After choosing III pillar pension funds, their management company can be changed at any time. Meanwhile, in the case of life insurance unit-link products, the company cannot be changed.

4. Ease of investment. III pillar pension funds are a much simpler investment vehicle – it is designed to make it easy for anyone to assess investment opportunities and risks. Depending on the age, simple funds are offered, with investments broadly diversified between different regions of the world, usually divided by share of stocks and bonds. After deciding to invest in life insurance unit-link product, you need to understand and choose by yourself the most suitable investment direction, which are usually quite many and varied.

5. Security. III pillar pension funds are managed only by fiduciary law (discretionary) – i.e. the assets of pension fund participants are separated from the assets of the company itself. If the pension accumulation company is faced with solvency problems (e.g. went bankrupt), there would be no risk to the assets of the pension funds – the assets of the funds would be transferred to a new asset management company for management according to the law. Meanwhile, in life insurance companies, despite the fact that they must comply with the legal requirements, for the reason of various technical details of financial accounting, investment assets are not separated from company assets. Therefore, if the insurance company would face solvency problems, the amount accumulated in the life insurance contracts may be at risk.
Is it save to accumulate pension with Goindex?
Yes, it is safe to accumulate pensions in Goindex. We are a licensed pension accumulation company, our activities are supervised by the Bank of Lithuania and the assets of the pension funds are kept in a depository bank (SEB bank).

More about security:
- Security from the pension accumulation company and its creditors. The assets constituting the pension fund are the joint partial ownership of the participants. These assets are separated from other pension accumulation company assets and other pension fund assets managed by the same pension accumulation company. The pension fund assets are kept in a depository. The pension accumulation company owns, uses and disposes of the property on the basis of trust law, therefore the company's creditors do not have any rights to the pension fund's assets.
- Protection against bankruptcy of the pension accumulation company. If a pension accumulation company that manages pension funds goes bankrupt, the bankruptcy administrator appointed by the court would transfer all the assets of the pension funds to another pension accumulation company for management in accordance with the procedure established by the Bank of Lithuania. Each participant could choose another pension accumulation company to which all funds accumulated in the pension fund would be transferred. Since the assets of the pension accumulation company are separated from the assets of the pension funds it manages, the bankruptcy of the pension accumulation company does not affect the amount of the participant's accumulated assets.
- Protection against greater depreciation of investments. A number of safeguards are in place to help prevent further devaluation of investments. One of the measures is investment diversification: pension fund assets, following the laws regulating pension accumulation activities, must be invested in various investment instruments, asset classes, regions or sectors. In addition, investments can only be made in certain investment instruments of specified countries, investments must be distributed in specified parts, etc.
I am accumulating a III pillar pension in another company, how can I transfer it to Goindex?
This easily can be done in 5-7 minutes by signing up for Goindex self-service. After concluding a new contract with Goindex, submit it to the pension accumulation company from which you want to transfer the contract to Goindex, and this company will transfer the accumulated amount to your newly concluded contract in Goindex.
I am accumulating a III pillar pension in Goindex, how can I transfer it to other company?
Enter a new contract with another company of your choice and submit the new contract to Goindex so that we transfer your accumulated amount to your newly concluded contract with another company.
How much can I accumulate in III pillar pension fund?
We invite you tu use our interactive pension calculator and in a few minutes you will receive relevant information about the pension you can accumulate and tips on how to get the best pension return.
What should I do if I am an heir to the accumulated assets?
In this case, you should contact the company and submit a request for the payment of the inherited part.

Contact us by e-mail. by mail [email protected]. or by phone +37052300333.
Who should I contact for additional consultation?
Contact us by email by mail [email protected]. or by phone +37052300333.
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