"Tuleva is 2-in-1: Estonia’s most exciting social startup and a high impact civil initiative that defends people's interests."
Taavet Hinrikus , Co-founder, Tuleva and Transferwise
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 enterprises in Estonia today.
Developer, Member of Tuleva
Tuleva is not a typical service provider. Tuleva is co-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.
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.
Entrepreneur, Member of Tuleva
Over 5000 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.
Musician, Member of Tuleva
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.
Teacher, investor, Member of Tuleva
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.
Economist, Member of Tuleva
In the future we will start a voluntary pension fund and will create other ways to increase our money through long-term savings.
Genealogist, Member of Tuleva
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.
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.
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.
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.
Tuleva member can be anybody of legal age who does not have current criminal record. What are my rights and obligations as a Tuleva member?
This is the contribution of all Tuleva members to our joint enterprise.
If your II pillar is not already in Tuleva pension fund, you can comfortably do it here.
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.
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.
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.
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.
If a member wishes to leave the association, then the membership bonus and capital will be paid out to them.
If a member passes away, the membership capital will be paid out to their heirs.
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:
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.
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:
Every member has the right to:
Every member has the obligation to:
*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.
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:
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.
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 (125 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.
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.
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's everyday work is aimed at increasing renewable energy generation, and he also serves as one of Tuleva’s legal advisers.
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 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 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 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 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 is an entrepreneur and investor. Indrek has longstanding experience in large corporations and has also been busy developing the cultural sphere.
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 is an investor with a broad set of experiences in building various investment companies and developing investment strategies.
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 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 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 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 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’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 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 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 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 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 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 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.
Every member has the right to:
Every member has the obligation to:
* 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.
Membership fees are used to develop the Association and to represent the interests of members. The fees of our first members were used to raise the fund’s initial capital, introduce Tuleva to the general public, and make preparations to start the fund, including application for an activity license from the Financial Inspectorate. From this point forward, membership fees will be used for the following activities:
Every euro saved gives a Swede almost a third higher pension than the same amount saved by Estonians. Estonia needs a smarter and measurable pension strategy.
As the first and only association representing pension savers, Tuleva is a credible partner for Ministry of Finance and state legislative bodies. We participate in pension strategy discussions, where next to the officials only banks and insurance companies used to be represented.
We help to make better laws. The laws that protect the people. The laws that maximize our profits from our, not banks’ savings.
We have our first achievements. For example
We do not organise demonstrations or spread random complaints. We are direct, we analyse issues and offer constructive solutions.
Tuleva’s main principle is that people themselves save money for their future, using contemporary technologies and bypassing unnecessary middlemen and costs as much as possible.
Every year, each member who has transferred their second or third pillar to Tuleva pension funds, earns a member bonus. Member bonus is very small at first, but it will grow together with member’s pension assets. Bonus is transferred to your personal capital account at Tuleva. This is your ownership stake in Tuleva capital and this stake can earn you additional profit.
When Tuleva grows, our funds under management grow and we add new products to our offering, then the association will earn profit. The profit is then divided among members, as set in our Articles of Association.
As always with profit from entrepreneurship – this depends how well our venture is doing. The founders are convinced, that the 125-euro joining fee pays for itself many times over. But we do not give promises.
At the end of each year
Every member has a vote on annual general meeting and has a right to elect and be elected to Tuleva’s board of directors and other supervisory bodies. This is the official part and it is very important.
Every day we share our ideas and experience among Tuleva members in our Facebook group, e-mail, phone and working groups. Among our community, there are people who care about the society and have very different skills. Many are ready to take responsibility for ensuring us a better future.
Tuleva team listens very carefully to our members and uses their ideas for making Tuleva better. We are only starting and believe that the power of thousands of smart people can be used for increasing our common good.
Tax benefit is simple: the government pays you back the income tax on your third pillar contributions. Tax benefit applies to contributions that do not exceed 15% of your gross income or 6000 euros, whichever is smaller.
Your maximum contribution amount to third pillar is thus 15% x gross annual income. If your annual income is over 3333 euros per month (gross), then you can contribute to third pillar 6000 euros.
Tax benefit equals 20% x your third pillar contributions.
NB! Your tax benefit cannot be bigger than the income tax you have paid during the year. Thus: if your gross income is less than 614 euros a month, then your maximum contribution is less than 15% of your income. More precisely – your maximum contribution per month is then: gross monthly income x 0.964 – 500.
With less than 519 euro monthly income you are not paying income tax most likely and hence you do not have any tax benefit in contributing to third pillar.