Questions and answers

You can change your chosen capital allocation an unlimited number of times. However, please note that it may take up to two weeks for the capital allocation to change.

You can change the stock/bond ratio in your portfolio as often as you like. However, please note that adjusting the proportions can take up to two weeks.

We will periodically send you a reminder about balancing the account. Balancing the account is necessary to always keep the share of stocks and bonds in the ratio you want. All you have to do is press the “Confirm” button and we’ll take care of the rest.

The prices of securities can change over time – both up and down. As prices change, the proportion of stocks/bonds in your account may also change.

 

When you balance your account, it goes back to the ratio you want. Account balancing should be done regardless of your chosen strategy. We will periodically send you a reminder that your account will be balanced. All you have to do is press the “Confirm” button and we’ll take care of the rest.

Your savings will be invested in index funds. Index-linked funds automatically invest across the market as a whole without picking individual stocks or bonds. You will own a small part of almost all the world’s largest companies. This is a great way to reduce the risk of investment concentration and get the opportunity to earn along with the growth of the world economy.

You can review the basic terms, attachments, and general terms of the INDEXO 3rd pillar pension individual participation agreement here: contract sample.

You can always track your savings in the “Savings” section of the 3rd pension pillar client portal “Mans INDEXO“.

The total cost is 0.62 % per year

Including:

• Custodian’s Commission 0.11 %
• Fund’s administration commission 0.30 %
• Asset manager’s commission 0.21 %

 

The pension fund’s assets cover the costs of the Bank of Latvia’s commission.

Guaranteeing profitability is prohibited by law. Any investment in the financial market is subject to fluctuations – up and down. A knowledgeable investor knows that the stock market has always grown strongly in the long term, but fluctuations must be expected in the short term. You can learn more about it here.

If your savings were a pie, then the value of a unit represents the size of one slice. Any pie can be cut into pieces of various sizes – big or small. This doesn’t affect the overall size of the pie.

 

Therefore, you can’t compare the unit values of two different pension plans. One plan might have larger units, while the other has smaller ones. This doesn’t mean one pension plan is better than the other.

 

What you should follow is how the unit value changes over time – in other words, how much the pension plan earns.

 

Your savings are calculated using the formula: Unit Value x Number of Units = Savings

 

For example, if you have €4000 saved in the second pillar pension, it can be divided as follows:

4000 units with a unit value of €1 each;
2000 units with a unit value of €2 each.

Contributions can be made in the “Mans INDEXO” customer portal, or just like any other payment in the internet bank. To do this, you will need these properties:

• Beneficiary: INDEXO Atklātais Pensiju Fonds AS
• Bank account: LV37HABA0551050377368
• Payment Purpose: your contract number, name surname

 

You will find the contract number in your “Mans INDEXO” profile in the “Documents” or “Contributions” section.

 

Research shows that regular contributions are an effective way to accumulate significant capital over the long term. The earlier you start saving, the smaller monthly contributions will be needed to reach the desired savings amount. That’s why we invite you to set up the regular payment so that the savings happen automatically and you don’t have to rush. You can see how valuable it is to start as early as possible in the 3rd pension pillar Savings Calculator.

We have also prepared instructions on how to set up a regular payment in Swedbank, SEB, Luminor and Citadele internet banks: choose yours here

Research shows that regular contributions are an effective way to accumulate significant capital over the long term. The earlier you start saving, the smaller monthly contributions will be needed to reach the desired savings amount. That’s why we invite you to set up the regular payment so that the savings happen automatically and you don’t have to rush. You can see how valuable it is to start as early as possible in the 3rd pension pillar Savings Calculator.

We have also prepared instructions on how to set up a regular payment in Swedbank, SEB, Luminor and Citadele internet banks: choose yours here

There are no limits on contributions from INDEXO. Deposit as much as you want!

By participating in the 3rd pension pillar, you can recover personal income tax (IIN) in the amount of 20% of the paid amount by submitting a tax return for the calendar year. There is no ceiling for the total amount of contributions, but it is possible to recover VAT from the amount contributed, which does not exceed 10% of your annual gross salary and is not more than 4,000 euros.

 

Please note that this information is informative and the tax refund can be adjusted for each individual according to the specific situation. For detailed information on personal income tax refunds, we recommend contacting the State Revenue Service or a professional tax consultant.

Yes, it is possible to be a member of different pension funds at the same time. However, take into account that the tax relief will apply to the contributions made to all pension funds together. I.e., it will still be possible to recover IIN from the paid amount, which does not exceed 10% of your gross annual salary and which is not more than 4,000 euros – regardless of how many pension funds you make contributions to.

We have prepared instructions that will help you transfer capital to INDEXO from Swedbank, SEB, Luminor, and Citadele banks: choose yours here. However, please note that the capital transfer can take up to 30 days.

The amount and regularity of contributions depend solely on you. It does not need to be coordinated with INDEXO in advance. If you also stop making additional contributions to the pension fund, your existing savings will remain invested in the financial market, based on your chosen investment strategy

When you reach the age of 55, you have a free choice of what to do with your accumulated capital. It is possible both to continue saving and to start withdrawing money.

 

In certain cases, the capital can also be paid out faster:

• if you worked for a certain period in a profession included on 28.07.2020 Cabinet of Ministers regulations No. 466;
• if you are recognized as a group 1 disabled person for life;
• in case of death – to the heir or designated beneficiaries.

 

If one of the three cases mentioned above has come into force, contact us via the customer portal.

For security reasons, we will need to identify you before you can withdraw your accumulated capital. You can do this remotely by following these steps:

1. Log in to your “Mans INDEXO” profile.

2. Go to the “Withdrawals” section and click on “Withdraw Money” (follow the instructions and complete the identification check – you will need a personal document, so keep it handy).

3. After successful identification, return to the “Withdrawals” section and provide the requested information under “Withdraw Money.”

 

For non-standard withdrawals related to disability, special professions, or inheritance, contact us through the client portal or via email at [email protected].

If your employer has made contributions for you, personal income tax will be withheld from those contributions. If you made the contributions yourself, personal income tax will not be withheld.

 

However, a 20 % capital gains tax will be applied to the portion of your savings that has grown as a result of investments (i.e., earned by the fund manager). We, INDEXO, will take care of the tax payment at the time of withdrawal.

It is possible to transfer savings to another pension fund at any time. This will be done within a month of receiving all the necessary documents.