SEB-Active 3rd Pillar Pension Plan Review 2021

Updated: 27 July, 2021 seen 70

I opted for a 3rd pension pillar pension plan at SEB bank Latvia back in May 2019. I've been saving additional funds for old age for already two years. Time flies. 

On the day, when I opted to save for old age,  my dad turned 65. Kind of average age in Latvia for retirement. 

I started small, saving EUR 33/mo for the first four-month, then increased it to EUR 43/mo for the next 4 months, and again increased monthly contributions to EUR 58/mo for the next 4 months. Right now I'm investing EUR 128/mo to the 3rd pension pillar plan (I tend to increase my contributions every 4 months)

SEB Active Pension Plan 2019-2021

SEB Active Pension Plan 2019-2021

In total, during the past 2 years, I have contributed EUR 1,740  (average EUR 72.5/mo) to the pension fund.

After the first two years with SEB Active pension plan, I've made EUR 108.18 or +6.21% capital gain. I find this quite a good result.

I believe 3rd pension pillar won't take more than 5-10% from my million dollar retirement savings account (which I plan to enter in 2045), on the other hand, the earliest I will be able to withdraw funds from a 3rd pension fund is in 2040 or 19 years to go. 19 years is plenty of time to build up some serious wealth.