OREANDA-NEWS. August 12, 2009. SEB received more than 5000 applications for continuing contributions to the second pension pillar in a week. Submission of applications for continuing pension contributions has started well. 5,252 SEB clients submitted applications for continuing making contributions to the second pension pillar in a week, reported the press-centre of SEB.

“Even though it is summer, our clients have been very active and any pessimistic expectations about the number of people who wish to continue have been beaten," said Indrek Holst, Chairman of the Management Board of SEB Life and Pension Insurance. “The number of applications we have received has exceeded all our expectations. The survey conducted by SEB shows that one-third of the people who have joined the second pension pillar plan to continue with their contributions."

On 3 August, SEB started accepting applications from clients who wish to continue making contributions to the second pension fund from 2010. The analysis made by SEB confirms that it pays for clients to continue their contributions, as this guarantees them a bigger pension in the future. A person who earns an average salary will save 140,000 kroons more for their retirement over a 40-year savings period if they continue their contributions. The calculation is based on the premise that the average salary increase will be 3 per cent and the average yield of pension funds will be 6 per cent.

Continuing with the contributions is particularly important for those who have less time left until their retirement. People who have 20 years left until their retirement will increase their pension assets by 12% if they continue with their contributions in 2010. People who have 10 years left until their retirement will increase their pension assets by 22% if they continue with their contributions.

Applications for continuing making contributions to the second pension pillar can be submitted in the internet bank or at branches until the end of November.