Pension Reform 2026: What’s Important to Know Before Making a Decision About the Second Pillar?

Recently, more and more discussions have been emerging about the 2026 pension reform and possible changes related to the second-pillar pension. Some people are considering whether it is worth continuing to contribute, others are interested in how pension withdrawal works, and some are already looking for answers to the question – where to invest the withdrawn funds.

However, decisions related to pensions are not short-term. They affect decades ahead. Therefore, the most important factor is not emotion, but a clear financial plan.

In this article, we will discuss:

• what to consider before deciding to withdraw from the second pillar,

• the most common mistakes made after withdrawing funds,

• how the logic of periodic investing works,

• and what you should know about investing through crowdfunding platforms.

What is changing and why are people considering withdrawing from the second pillar?

In the context of the 2026 pension reform, many residents are seeking clarity. The second pillar pension was created as a long-term savings system based on regular contributions and state incentives.

Nevertheless, people consider withdrawing from the second pillar for several reasons:

• lack of trust in the system,

• desire for greater flexibility,

• need for more control,

• short-term financial goals.

It is important to understand: the decision itself is not “good” or “bad.” However, it must be based on a clear plan.

The greatest risk arises not when a person makes a decision, but when they do not have a plan for what happens next.

What must be evaluated before withdrawing from the second pillar?

Before considering pension withdrawal, it is worth answering a few essential questions.

1. What was the goal of saving?

The second pillar was designed as a long-term instrument. When contributions are stopped, the effect of compound returns ceases, which over 20–30 years can have a significant impact on the final amount.

2. Is there an alternative plan?

If you are considering withdrawing your pension savings, you must clearly know:

• where the funds will be invested,

• what level of risk will be taken,

• what the planned investment horizon is,

• whether returns will be reinvested.

The decision should not be based solely on emotion or short-term needs.

3. The biggest mistake – the “spending scenario”

In practice, a common scenario is that withdrawn funds are:

• spent on consumption,

• kept in a current account without earning returns,

• used without a clear investment plan.

In such cases, capital stops working.

If the funds have already been withdrawn – where to invest them?

If the decision has already been made or you are considering withdrawing from the second pillar, structure is key.

The logic of investing is simple:

• Capital should not be held without a clear purpose.

• Risk should be diversified.

• Investments should be understandable.

For people with limited investment experience, the following criteria are often important:

• clear term,

• fixed return,

• understandable collateral,

• ability to invest smaller amounts,

• transparent communication.

One possible option is investing in real estate projects through crowdfunding platforms.

The importance of periodic investing

Even when investing smaller amounts, it is important to follow the principle of periodic investing.

Why is this important?

• it reduces the risk of emotional decisions,

• ensures reinvestment,

• maintains capital discipline.

For example, if €10,000 is invested with a 9.94% annual return and interest is reinvested, capital may grow over time due to the compound interest effect. However, it is important to emphasize – historical returns do not guarantee the same results in the future.

Investing always involves risk.

What should you pay attention to when choosing an investment platform?

Since there are various alternatives on the market, it is worth evaluating these criteria:

• Platform track record

• Transparency

• Risk management processes

• Project security mechanisms

• Diversification opportunities

• Minimum investment amount

• Team visibility

• Historical data

Most importantly – understand how returns are generated and what risks are being taken.

How does investing through “Profitus” work?

“Profitus” is a crowdfunding platform operating for 7 years. The platform offers investments in real estate projects in Lithuania, Latvia, Estonia, and Spain.

Key information:

• Minimum investment amount – from €100

• Average historical return – 9.94%

• Return – fixed according to specific project terms

• Most common investment/loan term – 12 months

• Interest is usually paid quarterly

• During delay periods, an additional +5% annual interest applies

• Security – mortgage over real estate, assessed by LTV or LTC ratio

• Historical recoveries account for 2.5% of the total historical portfolio

On the platform, investors can diversify by:

• project,

• real estate developer,

• city,

• country,

• region.

Investors can choose projects themselves and reinvest received interest.

Miglė Grybinienė, Head of Marketing at “Profitus”

“Working with investors, I see that the biggest mistake is not risk. The biggest mistake is having no plan. When people consider withdrawing from the second pillar, the decision is often emotional. My recommendation is – before taking any step, ask yourself: how will I manage the accumulated capital? If the funds are not invested in a structured way, they will simply stop working.

Profitus does not aim to encourage one decision or another. Our goal is to provide an opportunity to invest clearly, understandably, and transparently – from 100 euros to a million or more – while ensuring financial education and open communication with investors.”

Risk warning

Investing through crowdfunding platforms involves risk, including the possible partial or total loss of invested capital. Investments are not covered by the deposit insurance system. Before investing, it is necessary to review the Key Investment Information Sheet (KIIS) of each project and assess the risks.

Past performance does not guarantee future results.

What should you do today?

If you are considering:

• withdrawing from the second pillar pension,

• you have already withdrawn funds,

• you are looking for where to invest withdrawn money,

• or you simply want more control over your finances.

Register on the “Profitus” platform and explore opportunities to invest from €100.

Have questions? Contact our customer support team – we will help you understand the process and risks: support@profitus.lt

Decisions about pensions should be based on knowledge, not emotions.

*This article is for informational purposes only and does not constitute an offer or solicitation to invest.

More infomation:

https://www.profitus.com/news/pension-reform-will-your-money-work-for-you-in-the-future

https://www.profitus.com/news/what-did-estonias-pension-reform-show

https://www.profitus.com/news/the-biggest-mistake-with-pension-reform-money-impulsive-decisions

https://www.profitus.com/news/pension-money-a-purchase-or-a-decision-that-creates-value

https://www.profitus.com/news/pension-reform-the-first-step-into-the-power-of-compound-interest