The last deadline for making contributions to the third pillar this year is December 27th at 15:59.
Kristi Saare, Teacher and Women's Investors Club founder
Use our calculator to compute your maximum contribution affecting taxes. Read more, why invest in the third pillar?
This is a low-cost index fund which invests in the world’s largest publicly-traded companies. The fund details are here.
Apply It’s easiest to set up your third pillar fund through the bank where you receive your salary. After pressing the above button, you’ll be asked to select a bank, and then given step-by-step instructions to choose a fund and set up contributions. If you’ve already selected a Tuleva Third Pillar Fund, click here to make a contribution.
Yes, if you file your taxes in Estonia, you can open a pension account and contribute to third pillar. You can open the pension account on Tuleva website or in your internet bank – just click on the blue Apply button above.
You can claim tax benefit on third pillar contributions in two ways:
As contributions to the third pillar are not automatically deducted from your wages or social tax as in the second pillar, you make these contributions yourself, and they will be credited to the fund as soon as you have made the payment (or set up a standing order). To make a contribution log in here.
You can save any amount in the third pillar, there is no minimum. Here are some important things to keep in mind:
1. The optimal and maximum amount you should save in the third pillar is 15% of your annual gross income, but not more than 6,000 euros. This gives the biggest tax gain. Our calculator will help you make the calculation, and you can find more detailed explanations from investor Kristi Saare here.
The state is giving a great tax incentive to savers in the third pillar – next spring, you will get a tax refund on the amount contributed this year. Before looking for other investments, it is definitely worth making the most of the tax benefits of the third pillar every year. However, there is no point in investing more money in the third pillar than the tax-free limit. Read more about how the tax incentive for pension pillars will benefit you.
2. Don’t worry if you can’t save 15% of your gross income. For the beginning, set aside an amount that does not require you to sacrifice too much today. Start with as little as 25 euros a month and see if you can increase that amount next year.
3. The third pillar is an excellent tool for saving with a longer time horizon. As with any investments, don’t invest the money you need in the near future.
Unfortunately not. If you do not declare your income in Estonia now, then it’s not the best idea to invest through the third pillar. The problem is that you will not get a tax refund on your contributions, but when you withdraw the money, the state still withholds income tax on the entire amount, as if you had initially received a tax refund.
We invest passively and keep costs very low. In this way, we achieve a fund performance that goes hand in hand with world markets. Therefore, we can ensure that Tuleva pension funds’ performance will never lag far behind the average of the world securities markets.
Yes, you can. You can find instructions here.
But keep in mind that income tax is calculated for the pension account holder.
You can withdraw your funds from the 3rd pillar whenever you like. The withdrawals are taxed as follows:
issued a licence to Tuleva fund manager and controls that our everyday operations comply with regulations.
is Tuleva pension funds’ depositary bank. Depositary bank approves every transaction with fund’s assets. Exactly like with bank’s own funds.
protects all pension fund investors against the worst in case fund manager causes harm to investors.
Tõnu Pekk is an investor with 20 years of experience, a good deal of it from the international financial sector. Having led development projects and managed investments, he is currently fund manager at Tuleva.
Priit Lepasepp's everyday work is aimed at increasing renewable energy generation, and he also serves as one of Tuleva’s legal advisers.
Indrek Neivelt is the founder of Pocopay. He has been in a leading role at Hansabank and other large financial institutions in previous decades, and is now putting his knowledge to work for developing better, simpler payment solutions.
Daniel Vaarik has dedicated his career to ensuring that people get clearer and better information they need for making important decisions. He is currently a partner at Akkadian communication agency.
Kristo Käärmann is a co-founder of Wise. Having witnessed inefficiency in the financial sector, Kristo is helping to lead a revolution in the way money is moved, making currency exchange easier, clearer and more transparent all around the world.
Mall Hellam is the director of Open Estonia Fund. Mall’s activities are aimed toward making Estonia more open and tolerant, fostering serious discussion on key questions and building a robust civil society.
Kirsti Pent is a partner with FORT law offices. Kirsti specializes in financial regulations, helping clients develop clear, specific solutions for financial transactions. She is also one of Tuleva’s legal advisers.
Indrek Kasela is an entrepreneur and investor. Indrek has longstanding experience in large corporations and has also been busy developing the cultural sphere.
Annika Uudelepp is a civil society and governance expert with the Praxis think tank, and has long been spotlighting and helping to address issues of concern in Estonian society.
Henrik Karmo is an investor with a broad set of experiences in building various investment companies and developing investment strategies.
Taavi Lepmets is an investor. Since the 1990s, Taavi has been investing into early-phase technologies, and is still on the lookout for new avenues today.
Taavet Hinrikus is a co-founder of Wise. Taavet believes in simple, clear and transparent solutions and is helping to make money transfers and currency exchange easier and more convenient for everyone.
Loit Linnupõld is the founder of Crowdestate. Boasting longstanding experiences in the financial sector, he is helping to bring investors and real estate developers together to develop Estonian investor culture and develop access to capital.
Veljo Otsason is a co-founder of Fortumo and Mobi and an angel investor in more than 15 companies. Veljo’s passion is new technologies: his companies help create better wireless services and payment and authentication systems.
Rain Rannu is a technology entrepreneur and investor, and a founder of Fortumo and Mobi. Rain’s passion is enterprise and developing new ideas, and likes projects that would not exist without him.
Sandor Liive’s passion lies in the energy sector. Sandor served as CEO of the state energy company Eesti Energia for many years and now is engaged in developing new solutions in the energy sector.
Heikko Mäe is an auditor with a passion for getting things done in a meticulous manner. Heikko shared his knowledge and experience in creating Tuleva funds
Gerd Laub is a legal adviser at Funderbeam. With a background in law, he specializes in providing consultation to financial companies and helps to solve complicated problems in the financial technology sector.
Triinu Tombak provides financial and business advisory services. She currently serves on the supervisory boards of the power utility AS Harju Elekter and the think tank Praxis.
Kadi Lambot is a doctor who has served as CEO of a number of large enterprises. Kadi believes that the medical system needs comprehensive, user-friendly solutions and works to that end as member of the supervisory board of the Cancer Society, Healthy Estonia Foundation, and Tartu University Foundation.
Allan Kaldoja is an entrepreneur. His passion is developing CSOs. As supervisory board chairman, he was instrumental in getting SA Vaba Lava (Open Stage Foundation) off the ground.
Jaak Roosaare is an investor and the author of Rikkaks Saamise Õpik, which translates as a primer on how to get rich. Jaak devotes his time to making Estonians financially savvier, so they could make better financial decisions and enjoy a better life.
Every member has the right to:
Every member has the obligation to:
* This obligation has been included in our articles of association in the unlikely event that Tuleva has an unexpected need for additional capital. If a member refuses to pay additional fees which have been decided upon by the general assembly, they will lose their membership status.
Membership fees are used to develop the Association and to represent the interests of members. The fees of our first members were used to raise the fund’s initial capital, introduce Tuleva to the general public, and make preparations to start the fund, including application for an activity license from the Financial Inspectorate. From this point forward, membership fees will be used for the following activities:
Every euro saved gives a Swede almost a third higher pension than the same amount saved by Estonians. Estonia needs a smarter and measurable pension strategy.
As the first and only association representing pension savers, Tuleva is a credible partner for Ministry of Finance and state legislative bodies. We participate in pension strategy discussions, where next to the officials only banks and insurance companies used to be represented.
We help to make better laws. The laws that protect the people. The laws that maximize our profits from our, not banks’ savings.
We have our first achievements. For example
We do not organise demonstrations or spread random complaints. We are direct, we analyse issues and offer constructive solutions.
Tuleva’s main principle is that people themselves save money for their future, using contemporary technologies and bypassing unnecessary middlemen and costs as much as possible.
Every year, each member who has transferred their second or third pillar to Tuleva pension funds, earns a member bonus. Member bonus is very small at first, but it will grow together with member’s pension assets. Bonus is transferred to your personal capital account at Tuleva. This is your ownership stake in Tuleva capital and this stake can earn you additional profit.
When Tuleva grows, our funds under management grow and we add new products to our offering, then the association will earn profit. The profit is then divided among members, as set in our Articles of Association.
As always with profit from entrepreneurship – this depends how well our venture is doing. The founders are convinced, that the 125-euro joining fee pays for itself many times over. But we do not give promises.
At the end of each year
Every member has a vote on annual general meeting and has a right to elect and be elected to Tuleva’s board of directors and other supervisory bodies. This is the official part and it is very important.
Every day we share our ideas and experience among Tuleva members in our Facebook group, e-mail, phone and working groups. Among our community, there are people who care about the society and have very different skills. Many are ready to take responsibility for ensuring us a better future.
Tuleva team listens very carefully to our members and uses their ideas for making Tuleva better. We are only starting and believe that the power of thousands of smart people can be used for increasing our common good.
Tax benefit is simple: the government pays you back the income tax on your third pillar contributions. Tax benefit applies to contributions that do not exceed 15% of your gross income or 6000 euros, whichever is smaller.
Your maximum contribution amount to third pillar is thus 15% x gross annual income. If your annual income is over 3333 euros per month (gross), then you can contribute to third pillar 6000 euros.
Tax benefit equals 20% x your third pillar contributions.
NB! Your tax benefit cannot be bigger than the income tax you have paid during the year. Thus: if your gross income is less than 614 euros a month, then your maximum contribution is less than 15% of your income. More precisely – your maximum contribution per month is then: gross monthly income x 0.964 – 500.
With less than 519 euro monthly income you are not paying income tax most likely and hence you do not have any tax benefit in contributing to third pillar.
If you know that income is still coming to your account this year, add it yourself.
Please note that all income that reaches your account this year will be included in the calculation for this year (if the December salary is received in January, it will be included in the next year’s income calculation).
You can also add income that you plan to declare in the income tax return this year: rental income, interest paid by crowdfunding portals, income from the transfer of securities or other property.
Don’t worry if you don’t know the exact amount of your annual gross income today. Calculate the approximate amount and then find the optimal third pillar money placement with the calculator. If the actual annual income turns out to be higher than expected, your contribution will simply be slightly below the income tax allowance limit. Nothing terrible will happen even if you put a little more than the tax credit limit in the third pillar. The law does not prohibit it – if you exceed the limit, you simply cannot get the income tax back.