The majority of residents of Latvia, or 59 percent, have no idea how much one can save for his or her retirement, according to a survey commissioned by SEB Life and Pension Baltic SE.
Most other respondents said they had only a vague idea of how much one can save for his or her retirement. 13 percent of respondents said one’s Tier 2 pension savings may amount to EUR 10,000 – EUR 50,000 during their working life.
Only 5 percent of respondents said that a resident of Latvia could save more than EUR 100,000 in Tier 2 pension savings, and 7 percent this amount was less than EUR 5,000.
SEB Life and Pension Baltic SE explains that these data demonstrate the public’s ignorance, as 6 percent of one’s of gross salary automatically goes into pension savings throughout the person’s working life. A young person who has chosen a savings scheme appropriate to his or her age can save more than EUR 200,000 for his or her retirement.
The survey has also found that people are not really interested in what their future pension might be like. 60 percent of respondents said they did not know anything about their pension savings, while 17 percent believe they may have saved up to EUR 5,000.
The survey was carried out for SEB Life and Pension Baltic SE in January 2024 by company Norstat by interviewing 1,006 respondents aged 18-74.
Source: BNS
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