Frequently asked questions

I applied to exchange second pillar units, but my account now shows that my second pillar application is pending. What else should I do?

There are two different applications for changing your second pillar fund:
1) a choice application, which directs your monthly pension contributions to a new fund and becomes effective immediately
2) an exchange of units application, which transfers your existing units to a new fund.
These applications are fulfilled three times a year on certain dates (1 May if the application is submitted before 31 March, 1 September if the application is submitted before 31 July, and 2 January if the application is submitted before 30 November).

How does the tax benefit on third pillar contributions work?

You can claim tax benefit on third pillar contributions in two ways:

When you transfer money to third pillar, the amounts contributed are automatically recorded in your tax return. Once you file your tax return, the government will pay back the income tax on those contributions. You have to make sure, that your contributions won’t exceed 15% of your annual gross income or 6000 euros (whichever is smaller).

If you ask your employer to deduct your third pillar contribution directly from your salary, then the employer will not deduct income tax on this contribution. The same maximum limit on 15% of total income or 6000 euros applies.

How much should I contribute to the third pillar?

You can decide the amount and frequency of contributions yourself. However, for your pension assets to grow, it’s advisable to make regular contributions. Consider that, even though you can choose the amount you contribute to the third pillar, you will receive a 20% income tax refund on third pillar contributions that do not exceed 15% of your annual gross income or 6,000 euros, whichever is less. We have provided a calculator to calculate contributions.

Read more:

3. Use the tax incentive to leverage your investment portfolio

I am over 50, is it a good idea to start saving in the third pillar?

Yes, it’s never too late to set aside for retirement. In fact, the Ministry of Finance statistics show that the average age of those who have joined the third pillar is increasing year by year.
However, suppose you have 10 years or less left to retirement. In that case, we recommend investing part of your assets in a lower-risk bond fund or bank deposit to reduce the impact of short-term market fluctuations because the Tuleva Third Pillar Fund invests 100% in stocks.

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3. Use the tax incentive to leverage your investment portfolio

Third pillar slide deck

Is it a good idea to move money from the second to the third pillar?

No, certainly not. The Tuleva second pillar fund invests money in exactly the same securities as the third pillar fund. Although there is a significant tax incentive for contributions to the third pillar, the tax incentive for the second pillar is many times bigger. In addition, you will have to pay income tax on leaving the second pillar. This is an entirely unnecessary expense. See the calculation of the tax incentives of the second and third pillars in the example of Laura here.

Read more:

3. Use the tax incentive to leverage your investment portfolio

If I do not work in Estonia, will I get an income tax refund on third pillar contributions?

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.

I transferred the money, but I can’t see it in my pension account. Did something go wrong? I contributed to the third pillar yesterday, but it’s not reflected in my pension account. Why?

If you transfer money to the Tuleva Third Pillar Pension Fund, you won’t see the change in your pension account until the evening of the next business day. For example, if you transfer money on the weekend, you will see the new units in your pension account by Tuesday evening. Furthermore, your transfer might not be sent from your bank on the same day, for instance, if you made the payment after the end of the business day. In this case, you will have to wait another working day until you see a change in your pension account.

Why should I join the Tuleva Association?

By saving in Tuleva funds and becoming a member, you will get the most out of Tuleva. As a Tuleva member, you are not only a pension fund client but also a co-owner, and you can earn an owner’s income and decide on Tuleva’s development.
Tuleva’s idea is that people save money for their future together, leaving aside as many intermediaries and extra costs as possible – the more of us there are, the bigger the benefits from investing together.


I paid 125 euros, but it is not reflected on my membership capital statement. Why is that?

A joining fee and membership capital are two different things. The joining fee was a one-off fee that gave you a membership number, the right to have a say in Tuleva’s affairs, and the opportunity to earn a membership bonus.
The membership capital reflects your membership bonus, which is 0.05% per annum of the volume of your fund(s) held in Tuleva, i.e. your investment return. It will be transferred into your account each spring once the previous year’s annual report has been approved and the general meeting of the association has approved the decision.