OREANDA-NEWS. March 21, 2012. SEB has begun to offer its customers two new, additional pension insurance or third pillar disbursement products that provide the customer with a supplementary income during a period desired by her or him, reported the press-centre of SEB.

“Year after year, people’s life expectancies are growing, implying also a longer and more productive retirement. Many of those who have reached retirement age are wondering how to secure, for the rest of their lives or over a specific period, the regular income they have become accustomed to receiving during their working years. Our new third pillar pension disbursement products will provide them with the confidence needed to face the future, guaranteeing incomes during the period desired by the customer,” said Indrek Holst, Director of Life and Pension Insurance at SEB.

For example: a retired female of 67, having accumulated EUR 25 000 in the third pillar, concludes a contract for an SEB Lifelong Pension and receives EUR 114.8 every month. Were she to conclude a contract for an SEB Fixed-term Pension, with a disbursement period of 15 years, her pension disbursement would come to EUR 159.7.

Entitlement to receive voluntary funded pension disbursements arises when a person who has accumulated a pension in the third pillar turns 55 or, irrespective of age, in the event of her or his total and permanent incapacity for work.

The purpose of the SEB Lifelong Pension is to provide a customer desiring disbursements from the third pillar with pension payments until the end of her or his life. Lifelong disbursements from the third pillar in the form of monthly or quarterly pensions are exempt from income tax. For those desiring pension payments in the form of periodical disbursements over an agreed period, SEB offers the Fixed-term Pension. Fixed-term disbursements from the third pillar are subject to a 10% income tax.

The accumulated amount may be also collected sooner; however, no exemption from income tax will apply on the disbursements in such an event.