Second Pillar Pension Withdrawal: Rules & Timelines for Life Events

Individuals seeking early access to their second-pillar pension funds in Lithuania will face varying timelines for receiving funds, depending on the reason for withdrawal. While standard requests typically result in funds being available within 10 business days after the end of the quarter in which the request was submitted, expedited access is available under specific critical life circumstances.

The updated regulations outline three qualifying circumstances that allow individuals to withdraw their entire accumulated pension savings at any time without incurring taxes. This development comes as pension reforms continue to be a key topic of public discussion.

The clarification follows a recent inquiry on social media platform Facebook, where a woman asked about the timeframe for accessing funds in the event of illness.

According to comments provided to the Ministry of Social Security and Labour, pension fund administrators are required to verify an applicant’s eligibility for early withdrawal based on the stated qualifying condition within three business days of receiving the request.