Study: young res­i­dents have low in­ter­est in pen­sion sav­ings

Baltic News Network - - News -

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

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