Overview
Money accumulated in third-pillar pension funds can be withdrawn at any time as long as the terms and conditions of the fund allow it. That is the case with SEB funds. At retirement age and for up to five years before it, or with no work ability, you can opt for a funded pension as well as a one-off disbursement.
One-off disbursement
The desired amount of pension fund units are sold and the money received from the sale is transferred to your bank account.
You can fill in a one-off disbursement application in the Internet Bank or at a branch of the bank.
Good to know
The disbursement is transferred to the current account indicated in the application by the deadline specified in the terms and conditions of the fund, usually within three banking days of submitting the application.
Disbursements are subject to income tax.
Third-pillar funded pension
Disbursements are made until no units remain on the pension account.
The amount of a regular pension disbursement depends on the period and frequency of disbursements and the number of units accumulated.
In the case of a third-pillar funded pension, you can choose
- the frequency of disbursements (monthly, quarterly, or annually);
- the duration of disbursements. You have the right to choose the appropriate disbursement period. The minimum period is one year.
Long-term funded pension
Disbursements are made monthly or quarterly and the disbursement period is at least the average life expectancy given by Statistics Estonia. Third-pillar long-term funded pensions are exempt from income tax.
Short-term funded pension
The disbursement period is shorter than the average life expectancy given by Statistics Estonia. The period is set by the customer. Income tax is levied on the disbursement of the short-term third-pillar funded pension.
To receive your supplementary funded pension, submit an application to start disbursements in the Internet Bank.
Changing your funded pension
In order to change the terms of your funded pension, first submit an application to terminate the existing funded pension. After that, submit a new application for a funded pension with the desired terms.
You can also stop disbursements from your funded pension. This means that the units will stay in the pension fund until you make a new decision.
Good to know
Disbursements from the funded pension are made in the last month of the period. For example, the first quarterly payment will be transferred to your account during the third month after submitting the application, while the annual payment will be transferred during the 12th month.
You can also continue to save into the third pillar after the start of the disbursement period and enjoy the income tax benefits that go with it.
The value of units in a third-pillar pension fund increases and decreases according to the changes in their price, and the amount of regular disbursements depends on this.
