Given the choice, most Latvian residents would retire sooner than what is provided by Latvian legislation, according to results of a survey conducted by Citadele Bank in June.
57% of interviewed Latvian residents would like to retire at the age of 51-60 years. This response turned out the most popular in Lithuania and Estonia, where 51% and 55% of interviewed residents mentioned this range of retirement age. This retirement age was mentioned the most often by women in all three Baltic States.
Latvia and Estonia have the same retirement age at the moment – 64 years and three months.
In Lithuania men are able to retire at the age of 64 years and four months, whereas women – at the age of 63 years and eight months.
Only approximately 15% of respondents in Latvia are satisfied with the existing retirement age, and most of them are men. Survey data indicate that residents in Lithuania and Estonia are more satisfied with the existing retirement system – 23% in Estonia and 18% in Lithuania.
“Although survey data indicates that most residents would like to retire early, there isn’t much initiative from residents to ensure they are financially prepared for retirement. Most residents do not study the second level pension systems. On average contributions to the third level pension system commence start about ten years before retirement, which is too late to save up a sufficient amount to ensure future income remains more or less equal to their existing wage,” comments Citadele Bank’s subsidiary CBL Asset Management board chairman Karlis Purgailis.
“Few even know about the option to make the second level pension inheritable even tough every working person can write a request to Latvija.lv and any VSAA customer support centre. In 2021, a total of EUR 2.6 million was inherited by residents in Latvia. The state special budget, which can be listed as the recipient when there are no other inheritors listed, received EUR 15 million. Unfortunately, most residents are not aware of these and other useful options,” Purgailis continues.
12% of Latvian residents would gladly retire at the age of 41-50 years.
10% in Lithuania and 8% in Estonia would support such an option, according to survey data.
A representative survey about Baltic residents’ wish for retirement was conducted by Citadele Bank together with Norstat in June. 1,000 people aged 18-74 years took part in the online survey. (BNN/Business World Magazine)