Tuleva is a growing mutual company. Born as a citizens’s initiative, it has 3603 owners or members.

If you like Tuleva’s goals, want to support reaching them and want to benefit as an owner from everything Tuleva does in the future, then come and become a Tuleva member.

Become a member and choose Tuleva pension fund

  • You accumulate your pension in our joint low-cost pension fund
  • Management fee is lower for members - just 0,29%
  • You support Tuleva development plans and help to improve Estonian pension system
100€
one-off joining fee
Become a member

Simply choose Tuleva pension fund

  • Your save for your pension with a low-cost pension fund where owners care about your returns not bank’s.
  • Three times lower than average management fee — 0,34%
FREE
and it takes only 5 minutes
Learn about the funds How to change the fund

Why Tuleva was born and what are our goals?

We all need pension one day. The earlier you start thinking about it, the better is your life in the future.

But pensions are dead borning and investments complicated.

Boredom and complexity have made up a shield under which Estonian banks’ pension funds have charged high fees but our money has grown very little. In 2016, Estonian banks’ pension funds were the worst among OECD countries.

Tuleva was started as a civic initiative and is of the most exciting social companies in Estonia today.

Idea

Tuleva is not a typical service provider. Tuleva is owned by the pension savers themselves who decided to skip banks’ middlemen and start pension funds where they personally would like to put their money.

We deserve better

Tuleva was started as an initiative by 22 founders who decided that we deserve better. They started an association where every member has an equal decision right.

Founders
Members

We are stronger together

3603 people have already joined the founders. We invite you to become a member as well. Together we create better possibilities to save money for our future.

We earn money for ourselves, not for the banks

Alone it would not be possible for anybody. But together with the help of smarter technologies we can rid ourselves from costly middlemen and grow our, not banks’, money.

Global Index
Rocket

A beginning has been made

As a first step, we started modern low cost II pillar pension funds. All Estonian people can now save for pension together with Tuleva founders and members.

We have many more good ideas

In the future we will start a voluntary pension fund and will create other ways to increase our money through long-term savings.

Vacation

This is not all

As an association of pension savers Tuleva helps to make Estonian laws better so that pension system would be useful first of all to people not banks and insurance companies.

Done
Fund managers are not allowed to charge high fees for changing the pension fund.
Partially done
Competition among the pension funds must be encouraged so that people would have more choice.
In progress
People should have smarter and better choices for using the II pillar money.
In progress
Let’s open up the II pillar for voluntary contributions so that saving for retirement would be simpler and cheaper.
In progress
Let’s create a pensions dashboard for Estonian people similar to Sweden’s example that would give a clear overview of how our pension assets are doing.
In progress
Let’s have a possibility to ask independent advice and require fund managers’ salesmen to pass proper qualification exam.

Join Tuleva

  • I transferred my pension to Tuleva because Tuleva makes me feel like I am the state! I don't like the idea that in 30 years' time insurance companies will dictate how my pension will be paid out, therefore I wanted to join those who are planning to change the system. To the barricades!
    Mona Mägi Soomer
  • There were three reasons why I joined Tuleva. Firstly, because I enjoy projects where people cooperate. Secondly, because I believe the people of Tuleva are doing the right thing. Thirdly, I wish for less of my pension money to be spent on fees.
    Marja Vaba
  • I joined Tuleva because I believe a paradigm shift is badly needed in many fields in today’s society, one that stems from people’s own initiative. Today, pension; tomorrow, maybe healthcare. And the team is a solid and multifaceted one.
    Taavi Liivandi

Founding members

Tuleva was founded by 22 Estonian entrepreneurs and activists, who believe that Estonians deserve a better future.

Indrek Neivelt
Tuleva founder

II pillar: Tuleva World Stocks Pension Fund

Indrek Neivelt was one of the first to whom Tõnu Pekk told about the idea of creating a better pension fund. At first, Indrek politely listened to the idea and concluded that, yes, that is bad, but I do not have time to help here.

After a while, Indrek had a look at his pension account when opening his internet bank. What he saw, shocked him thoroughly. He called Tõnu and they decided to start working.

Annika Uudelepp
Tuleva founder

II pillar: Tuleva World Stocks Pension Fund

One day, Annika did a few calculations and found, that she has paid 108 euros in fees for every 1000 euros she had on her pension account while her profit was only 77 euros.

When looking closer, she realised that banks have dealt similar injustice to hundreds of thousands of pension savers. It was clear to Annika that something had to be done.

Kristo Käärmann and Taavet Hinrikus
Tuleva founder

II pillar: Tuleva World Stocks Pension Fund

One of the world’s most successful start-ups Transferwise was borne from similar frustration as Tuleva. Transferwise fights against hidden fees that banks charge for currency exchange and international payments. Tuleva fights against high management fees and hidden expenses of pension funds so that we, people of Estonia, could save money for ourselves, not banks.

It was logical that Kristo and Taavet wanted to support the initiative to make pensions better and be part of founding a start-up that belongs to people themselves.

  • Tõnu Pekk

    Tõnu Pekk

    Tõnu Pekk is an investor with 20 years of experience, a good deal of it from the international financial sector. Having led development projects and managed investments, he is currently fund manager at Tuleva.

  • Priit Lepasepp

    Priit Lepasepp

    Priit Lepasepp is an adviser with Nelja Energia AS. His everyday work is aimed at increasing renewable energy generation, and he also serves as one of Tuleva’s legal advisers.

  • Indrek Neivelt

    Indrek Neivelt

    Indrek Neivelt is the founder of Pocopay. He has been in a leading role at Hansabank and other large financial institutions in previous decades, and is now putting his knowledge to work for developing better, simpler payment solutions.

  • Daniel Vaarik

    Daniel Vaarik

    Daniel Vaarik has dedicated his career to ensuring that people get clearer and better information they need for making important decisions. He is currently a partner at Akkadian communication agency.

  • Kristo Käärmann

    Kristo Käärmann

    Kristo Käärmann is a co-founder of Transferwise. Having witnessed inefficiency in the financial sector, Kristo is helping to lead a revolution in the way money is moved, making currency exchange easier, clearer and more transparent all around the world.

  • Mall Hellam

    Mall Hellam

    Mall Hellam is the director of Open Estonia Fund. Mall’s activities are aimed toward making Estonia more open and tolerant, fostering serious discussion on key questions and building a robust civil society.

  • Kirsti Pent

    Kirsti Pent

    Kirsti Pent is a partner with FORT law offices. Kirsti specializes in financial regulations, helping clients develop clear, specific solutions for financial transactions. She is also one of Tuleva’s legal advisers.

  • Indrek Kasela

    Indrek Kasela

    Indrek Kasela is an entrepreneur and investor. Indrek has longstanding experience in large corporations and has also been busy developing the cultural sphere.

  • Annika Uudelepp

    Annika Uudelepp

    Annika Uudelepp is a civil society and governance expert with the Praxis think tank, and has long been spotlighting and helping to address issues of concern in Estonian society.

  • Henrik Karmo

    Henrik Karmo

    Henrik Karmo is an investor with a broad set of experiences in building various investment companies and developing investment strategies.

  • Taavi Lepmets

    Taavi Lepmets

    Taavi Lepmets is an investor. Since the 1990s, Taavi has been investing into early-phase technologies, and is still on the lookout for new avenues today.

  • Taavet Hinrikus

    Taavet Hinrikus

    Taavet Hinrikus is a co-founder of Transferwise. Taavet believes in simple, clear and transparent solutions and is helping to make money transfers and currency exchange easier and more convenient for everyone.

  • Loit Linnupõld

    Loit Linnupõld

    Loit Linnupõld is the founder of Crowdestate. Boasting longstanding experiences in the financial sector, he is helping to bring investors and real estate developers together to develop Estonian investor culture and develop access to capital.

  • Veljo Otsason

    Veljo Otsason

    Veljo Otsason is a co-founder of Fortumo and Mobi and an angel investor in more than 15 companies. Veljo’s passion is new technologies: his companies help create better wireless services and payment and authentication systems.

  • Rain Rannu

    Rain Rannu

    Rain Rannu is a technology entrepreneur and investor, and a founder of Fortumo and Mobi. Rain’s passion is enterprise and developing new ideas, and likes projects that would not exist without him.

  • Sandor Liive

    Sandor Liive

    Sandor Liive’s passion lies in the energy sector. Sandor served as CEO of the state energy company Eesti Energia for many years and now is engaged in developing new solutions in the energy sector.

  • Heikko Mäe

    Heikko Mäe

    Heikko Mäe is an auditor with a passion for getting things done in a meticulous manner. He is now putting his experience and knowledge to work for Tuleva as an internal auditor.

  • Gerd Laub

    Gerd Laub

    Gerd Laub is a legal adviser at Funderbeam. With a background in law, he specializes in providing consultation to financial companies and helps to solve complicated problems in the financial technology sector.

  • Triinu Tombak

    Triinu Tombak

    Triinu Tombak provides financial and business advisory services. She currently serves on the supervisory boards of the power utility AS Harju Elekter and the think tank Praxis.

  • Kadi Lambot

    Kadi Lambot

    Kadi Lambot is a doctor who has served as CEO of a number of large enterprises. Kadi believes that the medical system needs comprehensive, user-friendly solutions and works to that end as member of the supervisory board of the Cancer Society, Healthy Estonia Foundation, and Tartu University Foundation.

  • Allan Kaldoja

    Allan Kaldoja

    Allan Kaldoja is an entrepreneur. His passion is developing CSOs. As supervisory board chairman, he was instrumental in getting SA Vaba Lava (Open Stage Foundation) off the ground.

  • Jaak Roosaare

    Jaak Roosaare

    Jaak Roosaare is an investor and the author of Rikkaks Saamise Õpik, which translates as a primer on how to get rich. Jaak devotes his time to making Estonians financially savvier, so they could make better financial decisions and enjoy a better life.

What is Tuleva?

Tuleva is a mutual asset management company with the goal to grow our members’ assets, creating better investment opportunities for ourselves to save money in small increments over the long term.

As a first step, we started Tuleva`s II pillar pension funds. Next, we will create for our members a voluntary pension fund and will look for other sustainable and beneficial opportunities to save and invest money for the long term. At the same time,  we help to change the laws so that the Estonian pension system as a whole becomes more profitable for people saving for their retirement not for banks or insurance companies.

Why has Tuleva decided to be a commercial association?

A commercial association is a business form like any other. The main difference between commercial associations and other forms of business is that in a commercial association every member has exactly one vote. In a public or private limited company the number of votes is dependent on the amount of shares you own.

In a commercial association no one has the option to buy up other people’s votes or gain control of the association in any other manner. Profit sharing is carried out based on how much a member contributes into the association, not on how many shares she owns.

The founders of Tuleva believed that this form of entrepreneurship best represents a company that unites thousands of people. We don’t have distant investors, but we are all managing our money together and we all have the right to speak up about how our assets are managed, no matter how big one’s income or how much money one has managed to save yet.

How is Tuleva structured?

The members of Tuleva Commercial Association are the owners. The members elect a supervisory board, which appoints the management board. Every Tuleva member has one vote at the association general meeting.

Tuleva pension funds are managed by Tuleva Funds, which is owned by Tuleva Commercial Association.

Is Tuleva a for-profit organisation? Who gets the profit?

Tuleva’s goal is to earn profit for its members.

If Tuleva earns a profit, then it will be divided between members based on the rules written in Tuleva’s Articles of Association – the way members have agreed to share the profit.

Firstly, each member will receive the membership bonus they have earned. The rest of the profit will be divided based on how much each member has contributed into the association’s capital.

Membership bonus is a bit like preferred stock dividend – it is paid to all members based on how much money they have transferred into Tuleva pension funds. A member’s capital share is dependent on how much money they contributed into the initial capital of the fund and how much membership bonus they have stacked up.

The founders of Tuleva are subject to the same rules of profit sharing as all other Tuleva members.

What will happen to my money if I no longer wish to be a member?

If a member wishes to leave the association, then the membership bonus and capital will be paid out to them.

What will happen to my money if I pass away?

If a member passes away, the membership capital will be paid out to their heirs.

What is the membership bonus and how is it calculated?

Membership bonus is owner’s profit which is divided between each member who has transferred their second pillar assets into Tuleva pension funds. Membership bonus will be transferred to your capital account each year, which will increase your share in the association’s capital, which will earn additional profit.

At the end of the year:

  1. We will calculate the value of units that a member had on average in Tuleva pension funds during the year
  2. Multiply that number by 0.05% and transfer the relevant amount to their membership bonus account
  3. Every 5 years we decide at our general meeting, whether to pay out the profits or keep the money invested

Why is Tuleva Fondid AS a seperate legal entity?

At this moment in time, Estonian laws do not allow commercial associations to manage investment funds (there is no real justification for this limit). Therefore we founded Tuleva Fondid AS, which is 100% owned by Tuleva Commercial Association. Based on Financial Inspection’s licence, Tuleva Fondid AS manages Tuleva World Stocks Pension Fund and Tuleva World Bonds Pension Fund.

If I have already transferred my pension to Tuleva pension funds, should I also become a member of Tuleva?

You do not have to be a member of Tuleva to invest in Tuleva pension funds, but as a member you gain maximum benefit from Tuleva. As a member you are not only the client of your own pension fund, but also a co-owner.

We, members of Tuleva:

  • Earn a membership bonus every year from the fund management fee, which earns us extra money for our retirement
  • Help to change Estonian laws and regulations so that they benefit pension savers, not only banks and insurance companies
  • Decide over future developments in Tuleva: every member has one vote

What are the rights and obligations of Tuleva members?

Every member has the right to:

  • Have access to important documentation pertaining to all activities of the association
  • Participate in the general assembly and other Tuleva events
  • Elect Tuleva management and apply for management positions
  • Participate in Tuleva’s profit sharing based on predetermined rules
  • Use Tuleva’s services and participate in members’ information sharing (for example via e-mail or in our closed Facebook group)
  • Leave the association (after 5 years of membership have passed)
  • Leave their assets as an inheritance to their designated heir

Every member has the obligation to:

  • Comply with laws and follow the decisions made by Tuleva’s managerial board
  • Pay a one-time membership fee
  • Keep Tuleva’s business secrets
  • Pay additional fees if decided so by the general assembly*

*This obligation has been included in our articles of association in the unlikely event that Tuleva has an unexpected need for additional capital. If a member refuses to pay additional fees which have been decided upon by the general assembly, they will lose their membership status.

All Tuleva members must pay a one time fee of 100 euros to join. What is this money used for?

Membership fees are used to develop our association and to stand up for the rights of our members. From the fees paid by our first members, we made the necessary expenses to raise the fund’s initial capital, introduce Tuleva to the general public and prepare everything to get our pension fund started, including applying for an activity license from the Financial Inspection. From here on, membership fees will be used for the following activities:

  • Membership community management and communication
  • Development of Tuleva’s web page, blog and other information channels
  • Preparation of ideas and influence analysis to improve the Estonian pension system in cooperation with the Ministry of Finance and other state organisations
  • Development of Tuleva’s IT systems
  • Preparation and analysis of voluntary savings products and third pillar options

Can I become a member of Tuleva even if I haven’t joined the second pillar of the Estonian pension system?

Yes, you can. We have members who support Tuleva’s goals and wished to help us reach them by paying the membership fee.

However, Tuleva was mainly established for people who are invested or plan to invest in second and third pillar pension funds and who plan to migrate their retirement plans over to Tuleva funds in future.

If you don’t plan to invest in the second or third pillar, or at least if you don’t plan to do so through Tuleva’s funds, Tuleva’s management can revoke your membership in the future as the organization is ultimately meant for people who want a mutual plan for growing their retirement nest egg.

Joining Tuleva is thus beneficial to you and generally a good idea only if you have invested or plan to invest in second and third pillar pension funds. But some of our members are just people who want to do their part to make Tuleva a success.

What is the difference between being a client of Tuleva pension funds and being a member of Tuleva?

If you choose Tuleva’s pension funds you will become Tuleva’s client. If you also become a member of Tuleva, you will become a co-owner of Tuleva. Tuleva is a commercial association, which is owned by Tuleva members. We started Tuleva Fondid AS, which manages Tuleva pension funds. All Estonian people can become clients of Tuleva pension funds, you do not have to be a member to do so.

To become a client of Tuleva’s pension funds, you do not have to pay anything – you will instead instantly start to save money due to low management fees. It only takes 5 minutes to switch funds in your internet bank.

To become a member of Tuleva, you have to pay a one time membership fee (100 euros). Every member has paid a membership fee – this is every owner’s contribution to help develop our jointly owned association. The membership fee is one time only – there are no additional fees later on.

Why do you want pension fund clients to also become Tuleva members?

The overarching idea of Tuleva is to bring people together to save money for their future, leaving out as many middlemen and unnecessary fees as possible. The more members there are, the cheaper it will be for us all to invest together using modern technological tools.

1. By becoming a member you help fill our goals

Firstly, we plan to create voluntary savings products and other investment instruments to save money for the future.

Secondly, we will keep on fighting to make the Estonian pension system better for the people of Estonia, not just the banks or insurance companies. We will work together with the Ministry of Finance and citizen initiative project “Uue Eakuse Rahvakogu” helping to create better laws.

2. Members earn a profit

Every year we calculate a membership bonus for all members who have transferred their second pillar funds to Tuleva pension funds. The bonus will be transferred to every member’s personal capital account at Tuleva. This will increase their share in Tuleva’s capital and this share will earn an additional return. If Tuleva gets bigger, and the funds start to manage more money and we create more investment products, the association will earn a profit, which will be divided up between members based on predetermined rules. As always, the size of the profit depends on how well we do as a business. The founders of Tuleva are more than convinced that the one time fee of 100 euros to join will be more than compensated in future returns, but we are of course not making any promises.

Answers to your questions regarding Tuleva pension funds can be found here.

How do Tuleva pension funds differ from other Estonian II pillar pension funds?

  1. Tuleva pension fund manager belongs to people who are themselves investors of the pension fund. This means that the owners are always motivated to keep the costs low. This leaves us, the pension fund investors, more money for our pension. Old school fund managers aim to take as high as possible management fees because their owners – banks – want to maximize their profits.
  2. Tuleva introduced low-cost index funds to the Estonian pension market. Most of the pension money in the world goes to such index funds today because historical evidence shows – the lower the costs of the fund, the better the long-term returns.

What is Tuleva pension funds’ investment strategy?

We in Tuleva believe in passive investing. This means you just spread your money among the largest companies’ shares and government bonds so that risks are well diversified. Then you just need patience in order to keep on the same track and to not let bank tellers scare you or salesmen to deceive you. The funds that invest passively are called index funds.

This used to be a radical idea that became lifetime work for many independently-thinking finance experts:  for example Burton Malkiel, Jack Bogle and Nobel prize winner William Sharpe. Today, academic research and statistics have proven that this strategy works. That is why most people today choose a passive investment strategy.

  1. Tuleva pension funds focus on long-term returns and do not worry about short-term fluctuations. Hedging short-term risks would be costly and would reduce our chances of getting the best return for our money.
  2. Tuleva does not make forecasts or attempt to outperform the market but invests based on facts. The pension fund money is spread among the world’s largest and most successful companies` shares because this has proven to give the best results for most investors in the world.
  3. Tuleva keeps costs very low and spends money only on activities that add value to pension fund investors. The higher the costs, the less money will accrue for our pensions. Tuleva does not spend money on expensive advertising, hedging short-term risks or on an army of salesmen.

Is my money in Tuleva pension funds as protected as in a bank’s pension fund?

Yes. Your money is protected in addition to Tuleva’s own internal rules and procedures by these three pillars:

Financial Inspection has issued Tuleva fund manager a license and is overseeing that our activities comply with its rules.

Swedbank is the depositary bank of Tuleva pension funds. Depositary bank confirms every transaction made with the fund`s assets. Exactly the same way as with the bank`s own funds.

State guarantee fund protects all pension fund investors against the worst, in case the fund manager’s fault has caused damage to the fund.

What should I consider when choosing a fund?

In case you have more than 10 years to pension age, then we recommend to follow these two principles when saving for pension:

  1. Your pension savings should be invested in the asset class with a maximum expected return. For our pension savers that asset class is shares in companies. So you should keep your money in a pension fund with maximum proportion in shares i.e. aggressive strategy funds.
  2. Among those funds that satisfy point 1, choose the lowest cost funds. Historical data shows that the fund cost ratio is the best predictor of long-term returns. The higher the expenses, the lower the return, and vice versa.

If you have less than 10 years until retirement, then it makes sense to consider conservative funds. Even though such funds are expected to return less, the value of their shares also fluctuates less.

Which Tuleva pension fund suits me?

If you are younger than 55, then Tuleva World Stocks Pension Fund suits you.

If you are over 55, then Tuleva World Bonds Pension Fund might suit you better.

Read more

If my pension fund units have fallen in price recently, should I change the fund?

No. This is not a good idea. This question has been analysed quite thoroughly in the world and the conclusion is: those people who try to time the market tend to buy when markets are at their peak and sell when at the bottom.

Many investors attempt to predict market movements but most often they do not succeed, even professional investors. This is one reason why Estonian pension funds have significantly underperformed world market average returns.

Remember that a market decline is not necessarily bad news for you. Most of us will be buyers of pension fund units for many years to come. A fixed amount of your salary goes to the pension fund every month and when the market is down, you will get more units for the same amount of money. So when the markets start to rise again, you will have more units that grow in value. This is called dollar-cost averaging. This works for you only in case you do not jump in and out of the funds, attempting to “step on the gas” or “decelerator” all the time.

When should I change my pension fund?

Learn the basic facts of long-term saving and decide, what is you strategy. You should change your pension fund when it turns out that your pension fund’s strategy is not aligned with your own saving principles. We (and most expects, like investment guru Warren Buffett) recommend that you follow two main rules:

  1. If you have more than 10 years to retirement, invest in the asset class with maximum expected return. For our pension savers that asset class is shares in companies. So you should keep your money in a pension fund with a maximum weight in shares i.e. aggressive strategy funds. If your fund is not keeping as much of your money as possible in shares, change the fund.
  2. Keep your money in a fund with the lowest possible expenses because the lower the expenses, the better the chances that you will have more money for retirement. Change your pension fund if it isn’t among the lowest cost ones in your chosen investment strategy category.

How can I protect my pension money against an economic crisis or a stock market collapse?

The best way to protect yourself is to do nothing and stick to your strategy of low cost funds through both market boom and bust.

Jack Bogle, the founder of the world’s largest fund manager Vanguard, recommends: “Put your money in a low cost index fund and don’t peek!” One of the world’s most successful investors Warren Buffett recommends: “”Keep buying it through thick and thin, and especially through thin. The temptation when you see bad headlines in newspapers is to say, well, maybe I should skip a year or something. Just keep buying. ”

Why?

Markets are cyclical – there is always a fall after a rise and vice versa. At least that’s how it has been in the past. When you save for your pension, you are a long-term investor. The past is no guarantee for the future, but at least history has shown that a long-term investor does not need to worry about market cycles.

Look at it this way: markets will fall. This is certain. Also, it is certain that nobody knows when it will happen. If you doubt this, try to find a fund manager or analyst who has precisely forecast all recent market crashes – in January 2000, autumn 2007 and summer 2011 and who recommended to buy shares in the intermediate period. There are no such people – some were too optimistic and lost money and others missed out on market gains because they were too pessimistic. All Estonian pension funds have underperformed the market average because fund managers have sometimes been too bold and sometimes too scared.

If you manage to avoid the temptation of making decisions based on short-term market fluctuations and keep smooth-talking salesmen and scaremongering bank tellers at bay, you will get the world market average returns for your investments. Over the long term, these returns have been higher than what most professional fund managers have achieved with their active buying and selling.

Is is sensible to divide my II pillar money between different funds managed by different fund managers so that my risks are better diversified and I could compare the results?

All Estonian pension funds’ risks are well diversified, that is required by law. A pension saver does not have to manage their risks by spreading money among many funds. In addition, a pension saver does not bear any business risk of the fund manager. That is why spreading your money among many funds does not reduce your risk.

The only way to reduce your risk is to put some part of the money into a conservative strategy fund e.g Tuleva World Bonds Pension Fund or Swedbank K1.

This could be a sensible choice if you have only a few years until retirement. It could also make sense if you are very sensitive to risks and short-term fluctuations make you really suffer. But you need to understand that there are no risk free returns – if you avoid risk, then you get no or very little return.

You can compare funds’ results on the Pensionikeskus website – you don’t have to invest into many funds to do that.

What is the difference between being a client of Tuleva pension funds and being a member of Tuleva?

If you choose Tuleva’s pension funds you will become Tuleva’s client. If you also become a member of Tuleva, you will become a co-owner of Tuleva. Tuleva is a commercial association, which is owned by Tuleva members. We started Tuleva Fondid AS, which manages Tuleva pension funds. All Estonian people can become clients of Tuleva pension funds, you do not have to be a member to do so.

To become a client of Tuleva’s pension funds, you do not have to pay anything – you will instead instantly start to save money due to low management fees. It only takes 5 minutes to switch funds in your internet bank.

To become a member of Tuleva, you have to pay a one time membership fee (100 euros). Every member has paid a membership fee – this is every owner’s contribution to help develop our jointly owned association. The membership fee is one time only – there are no additional fees later on.

Why do you want pension fund clients to also become Tuleva members?

The overarching idea of Tuleva is to bring people together to save money for their future, leaving out as many middlemen and unnecessary fees as possible. The more members there are, the cheaper it will be for us all to invest together using modern technological tools.

1. By becoming a member you help fill our goals

Firstly, we plan to create voluntary savings products and other investment instruments to save money for the future.

Secondly, we will keep on fighting to make the Estonian pension system better for the people of Estonia, not just the banks or insurance companies. We will work together with the Ministry of Finance and citizen initiative project “Uue Eakuse Rahvakogu” helping to create better laws.

2. Members earn a profit

Every year we calculate a membership bonus for all members who have transferred their second pillar funds to Tuleva pension funds. The bonus will be transferred to every member’s personal capital account at Tuleva. This will increase their share in Tuleva’s capital and this share will earn an additional return. If Tuleva gets bigger, and the funds start to manage more money and we create more investment products, the association will earn a profit, which will be divided up between members based on predetermined rules. As always, the size of the profit depends on how well we do as a business. The founders of Tuleva are more than convinced that the one time fee of 100 euros to join will be more than compensated in future returns, but we are of course not making any promises.

When I choose today Tuleva pension fund, can I later also join the association?

Yes. If you haven’t decided today if you want to become a member of Tuleva, then you can just transfer your pension to Tuleva pension fund. This doesn’t cost anything and takes less than 5 minutes in your internet bank. If you wish, you can become a member later. If not, there is no obligation. (The joining fee will increase in the future but we will let our pension fund clients know well in advance).

If I become a member of Tuleva, will my II pillar be automatically transferred to Tuleva pension fund?

No. If you haven’t changes your pension fund in your internet bank, you can do so immediately after joining Tuleva through our web app using your ID card or Mobile ID. Once you have made up your mind, it takes only 5 minutes of your time.

Answers to your questions regarding Tuleva associtiation can be found here.

What is the second pillar?

The Estonian pension system has three pillars.

First pillar – the basic state pension where the retirement income depends above all on the number of years you’ve worked

Second pillar – the amount depends on the money withheld from your pay plus a contribution from the state

Third pillar – a system for putting aside money on your own

The second pillar – the mandatory funded pension – is part of your future retirement nest egg. This fund is based on a small percentage of your monthly earnings. You contribute 2% of your gross earnings, and the state contributes 4%.

How much money does the second pillar now contain, altogether?

Estonians have amassed a total of over three billion euros in the second pillar funds. That means second-pillar funds are a very important component in Estonians’ retirement funds. The amount increases every month. This is why Tuleva established a second-pillar pension fund first. The fees are low and it would have the biggest benefits for Estonian investors.

What can I decide myself when it comes to the second pillar?

The most important decision you can make is choosing the pension fund to place your money in. Your pension fund’s performance will determine how much your assets will grow before you retire. The management fees and the pension fund yield are key considerations when you choose a pension fund. The better the pension fund your assets are parked in, the higher your future retirement income.

How do I switch to a different second-pillar fund?

There are three cut-off dates for moving you retirement assets – 31 March, 31 July and 30 November. The units are exchanged within one calendar month of the corresponding date. As for the current payments contributed to the account every month, these can be reassigned to a new fund at any time.

I’ve heard that it’s not really worth saving in the second pillar, as it won’t be enough to live off of anyway. Wouldn’t it be wiser to focus on some other way of building wealth?

Saving in the second pillar doesn’t rule out other means of investing and having an additional nest egg in the second pillar is under any circumstance a wise plan. No, the first and second pillar will definitely not be enough to lead a high-flying life, but should be enough to manage comfortably. The second pillar has an important role in allowing people to stay above the poverty line in one’s retirement. As the second pillar can’t be closed, we feel it’s wise to save wisely in it.

Today the second pillar pension funds oversee the assets of close to 700,000 people in Estonia. Over the years, this money has grown more than 600 million euros less compared to the world market average. That means that the average person saving for their retirement in the Estonian second pillar is 900 euros short of what they would have at the world market average rate of growth. You wouldn’t just “forget” about the money if someone had taken 900 euros from your wallet.

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