Study: young residents have low interest in pension savings
The majority of economically active residents (73%) aged 18 to 39 are interested in knowing the size of their future pension. At the same time, 70% of them do not know their current amount of pension savings.
46% of respondents do not know or are not certain who their pension manager is, according to results of a study performed by Citadele Bank’s subsidiary CBL Asset Management and Norstat. «Study’s results point to several interesting and worrying trends. We see that economically active residents aged up to 39 want to know the size of their future pension. At the same time, a relatively small number of them have switched from interest to action. Unfortunately, the reality is that most don’t know about the size of their pension savings or which pension manager is in charge of it. With that, the point of a three-level pension system, which provides for people to monitor their savings, profitability of their chosen pension plan or change their chosen pension manager or pension plan, is lost. People rarely use the opportunities provided by the state pension system. Without knowing pension savings people are at risk of falling into illusions,» says CBL Asset Management board chairman Kārlis Purgailis.
The higher their income, the better informed people are
Survey data shows that the level of awareness of residents aged 18 to 39 in 2018 has declined in comparison to 2011. 62% of residents of this age group knew for certain who was in charge of their 2nd level pension in 2011. Now, however, only 58% of residents know for certain who manages their pension. There is a notable trend – the higher their income, the more people are informed of pension matters. Data shows that residents whose income is EUR 750 a month after taxes rarely know their 2nd level pension manager (37% to 49% of residents, depending on income). Residents whose monthly income is above EUR 751, on the other hand, are generally better informed of their pension manager (60% to 70% of them know for certain).
Study results also show that the level of awareness regarding pension affairs for residents aged 18 to 24 is below that of residents aged 25 to 39. Only 31% of residents aged 18 to 24 know their pension manager. Read the full article on bnn-news.com