Tuleva’s II pillar pension funds

The II pillar comprises an important part of your future pension. Each month, 2% of your salary goes into the II pillar, to which the state adds 4% from the social tax paid on your salary. Choosing the right fund is important, because it will affect your future pension. That’s why you can now choose and switch between II pillar funds in our internet and mobile bank.

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The financial service is offered by Tuleva Fondid AS. Review the fund’s terms and conditions, prospectus and key information online at tuleva.ee and consult a specialist by e-mailing tuleva@tuleva.ee or calling 644 5100.

Pay low fees

When it comes to long-term savings we’ve chosen to partner with Estonia’s own Tuleva, which offers low-fee funds across the board. This is important because when saving for the long term, low fees are the only credible predictor of future returns. The fees are simply deducted from your pension assets. Not one euro that you pay out to the fund manager will earn you a return in the future. Make sure the fund you choose charges 0.5% or less.

Choose an index fund

Tuleva offers index funds – this means that everyone saving in the fund owns shares in nearly 3000 of the world’s leading companies. This hedges your risks across a number of countries, enterprises and branches of industry and means that your [nest] eggs are in almost 3000 different baskets. Secondly, as an owner of these successful businesses, you benefit from growth in the global economy: as these businesses grow, so will your II pillar. Historically, index funds have shown the highest returns. Bear in mind, of course, that past performance is no guarantee of future returns.

Make a responsible choice

Tuleva is a cooperative of people saving for their retirement. Therefore, there is no conflict of interest between the company and its clients. No Tuleva customer pays more than 0.38% in fees. Tuleva champions the interests of everyone saving for their pension in Estonia: thanks to them, the country has index funds, the law prohibits exit fees when leaving a II pillar pension fund and fees have to be communicated transparently.

Your choice of II pillar pension fund counts

Since the II pillar forms such an important part of your future pension, it’s vital you know that the fees you’re charged for a pension are the best predictor of how much the fund will earn you. You can be sure that if your chosen fund’s fees are higher than 0.5%, you’ll pay a hefty slice of your earnings to the bank rather than being able to make use of them down the line. Plus, anything you pay towards fees will earn you nothing. The sooner you select a fund with low fees, the greater the direct impact it will have on your savings. For example, if you pay as little as 1% lower fees every year from the age of 20, you’ll save 25% more for your pension on unpaid fees alone. That said, it’s never too late to change funds: even if you save 1% on fees annually from your 50th birthday onwards, you’ll still earn 10% more for your retirement.

This means you invest exactly the same amount of money, but can significantly increase its value by saving in a low-fee fund long-term.

Use the Tuleva II pillar calculator to work out how much you stand to gain.

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Increase your contribution from 2% to 6%

To date, people have been able to contribute 2% of their gross salary to the II pillar, to which the state has added 4%. Now you can apply to raise your 2% contribution to up to 6% from 2025. This change only pertains to an individual’s own contribution: the state will continue to add 4% from social tax regardless.

We recommend raising your contribution to 6%, because pensions are low in Estonia: the average pension in the country is around 40% of the average wage, but the EU average is almost double that. Increasing your contribution to the II pillar is a good way of saving automatically and tax-free for your future.

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A bank in your pocket

With our mobile app you can keep an eye on your money matters and do all your daily banking. And all right there in your pocket, from quick payments to saving without even realising you’re doing it! Try it for yourself

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Tuleva’s II pillar pension funds - good to know

We constantly improve the range of services offered to our customers and therefore offer to invest in Tuleva's pension funds through Coop Pank's internet and mobile banking. Our aim here is to help people in Estonia save more effectively.
Tuleva shares a lot of our values: both of our companies are Estonian-owned, and we both contribute to promoting the financial well-being of people in the country. Likewise, we both aim to encourage people to think about saving – including those who, for a variety of reasons, have never really given it any thought. Stage 1 of our partnership involves giving Coop clients the chance to start saving in the Tuleva III Pillar Pension Fund via the Coop website.
Further down the line, our partnership will guarantee a win-win-win scenario for Coop Pank, Tuleva and our clients, which is to say we’ll prove that 1+1=3.
Tuleva is an asset management company that takes the form of a cooperative. Its aim is to grow the assets of people in Estonia, creating the best conditions for investing money long-term for anyone wishing to join. Its founders include Tõnu Pekk, Indrek Neivelt, Taavet Hinrikus, Kadi Lambot and other well-known Estonians. Tuleva’s III pillar has already become one of the country’s biggest pension funds. The association’s principles are offering low fees and investing solely in good funds.
Tuleva has introduced modern, low-fee index funds to Estonia. An index fund is an investment fund which seeks to emulate the average market returns by investing proportionally in all (or almost all) of the assets on the market. Index funds constitute a passive form of investment, which means that the fund manager doesn’t actively look to choose shares or other assets that might exceed the average market returns. As a rule, index funds come with low fees.
The II pillar or mandatory funded pension forms part of the pension system. The mandatory funded pension is collected at the rate of 6% of a person’s gross salary: 2% is contributed by the individual themselves, while the other 4% is contributed by the state. These payments are automatically deducted from a person’s salary unless they’ve exited the mandatory funded pension system. Mandatory funded pension assets can be used during a person’s retirement or earlier upon exiting the system.
The funded pension, which is to say the II pillar, is based on pre-financing – when you work in Estonia you save for your retirement yourself by paying 2% of your gross salary into your pension fund. The state adds 4% to this from the 33% social tax paid on your income. These payments are made automatically.
The voluntary funded pension, which is to say the III pillar, is an additional way of saving in which you decide on the frequency and amount of contributions yourself, as well as on how you make them. Anyone can transfer up to 15% of their gross income (no more than €6000 per year) to their III pillar tax-free.