41% of Latvian residents do not make savings for retirement, reports Luminor Bank with reference to results of a recent survey.
Head of Asset Management and Pensions Department of Luminor Bank Atis Krumins comments that the largest portion of Latvian residents who do not make savings for retirement are aged between 18 and 39 years.
One of the most popular reasons as to why Baltic residents do not make savings for retirement is the belief that by the time they reach pension age the inflation will have significantly reduced the value of accumulated money. This belief is shared by 29% of residents in Latvia, 35% in Lithuania and 39% in Estonia.
At the same time, the main reason why the residents of the Baltic States choose to make pension savings is the desire to ensure a good and prosperous life in old age. 58% of Latvian residents, 64% of Lithuanian and Estonian residents share this belief.
No resident in Baltic States is ready to depend solely on the state-guaranteed first level pension amount, survey results show.
In the survey, 7% of Latvian residents expressed the opinion that the first level of guaranteed pensions would be able to provide prosperous old age for everyone, while in Lithuania and Estonia this indicator was slightly higher – 9% and 12% respectively.
Luminor Bank conducted its survey in April together with Norstat. 3,015 respondents aged 18 to 65 years participated in it. (BNN)