Performance of INVL 2^nd pillar pension funds

Important to know

Please remember that for participants in 2^nd pillar pension accumulation, the state social insurance retirement pension for the period prior to 31 December 2018 is proportionately reduced as established by law, except for persons participating in pension accumulation prior to 31 December 2018 who between 1 January 2019 and 30 June 2019 exercised their right to terminate pension accumulation – reduction of the state social insurance age-old pension will not apply to such persons. The additional State contribution does not reduce the amount of the retirement pension. A 2^nd pillar pension accumulation agreement cannot be terminated, unless it is a first-time agreement, in which case the participant may unilaterally terminate the agreement within 30 calendar days after signing the agreement, by giving written notice to the pension accumulation company. Persons who became participants before 31 December 2018 had the right to terminate their participation in the accumulation of pensions or to suspend the transfer of pension contributions to the pension fund from 1 January 2019 to 30 June 2019.

Participants in accumulation in pension funds assume the investment risk. The pension accumulation company does not guarantee the profitability of pension funds. The value of a pension fund can go both up and down, and you can get back less than you invested. Past performance of a pension fund does not guarantee the same results and profitability in the future. Past performance is not a reliable indicator of future results.

Choose a pension fund responsibly and carefully. Please pay attention to investment risks and applicable deductions. Carefully read the rules of the pension fund, which are an integral part of the pension accumulation agreement.

Depending on the amount accumulated in a 2^nd pillar pension fund, it may be withdrawn as a lump sum (for less than EUR 5,403) or by periodic payments (for EUR 5,403 to EUR 10,807), or a pension annuity may be acquired (when EUR 10,807 to EUR 64,841 is accumulated) which may be one of three types: standard, inherited standard with a guaranteed payment period, or deferred. In the case of a standard annuity, the entire accumulated amount is allocated to acquire the annuity, with pension payments starting as soon as the annuity is acquired and continuing as long as you live. For an inherited standard annuity, payments are also made as long as you live, but time payment until the participant reaches the age of 80 is guaranteed – if the participant dies earlier, the unpaid amount can be inherited. For both types of standard annuity, the entire accumulated amount is allocated to acquire the annuity and the state social insurance fund pays the benefits in addition to the old-age pension paid by the state. In the case of a deferred annuity, until the age of 85 benefits are paid from the private pension fund (out of the assets remaining after acquisition of the deferred annuity) and those assets can be inherited. From the age of 85, meanwhile, benefits are paid by the state social insurance fund and are not inheritable. If more than EUR 64,841 is accumulated, then the pension assets exceeding that amount may be paid out as a lump sum, while the remainder is paid while you live according to the type of annuity acquired. You can learn more about pension annuities here.

All the information presented is of a promotional nature and cannot be construed as a recommendation, offer or invitation to accumulate assets in pension funds managed by INVL Asset Management. The information provided here cannot serve as a basis for any subsequently concluded agreement. Although this information of a promotional nature is based on sources which are considered to be reliable, INVL Asset Management is not responsible for any inaccuracies or changes in the information, or for any losses that may incur when investments are based on this information.