Third pillar falters

TALLINN - The third pension pillar, or voluntary pension insurance, is losing popularity among clients of market leading banks: since the start of this year, the number of Swedbank and SEB fund holders has fallen by 4,500, reports Postimees. “We estimate that the cause of that is primarily the fall of the general savings ability of pension savers, which is why current contracts have been severed or cashed in,” said SEB asset management board member Ulle Mathiesen.
The other reason is the fall of financial markets due to the euro area financial crisis, which decreases the sense of security about investing. Figures also confirm this, since the yield of the fund shares in the past year has been negative, up to minus 21.5 percent.

While the number of 3rd pension pillar fund holders in Swedbank has fallen this year by 2,854, or 8.6 percent, and at SEB by 1,503, or 9 percent, Nordea Bank, however, has increased the number of fund holders by 61 percent, or by 1,396.
Nordea Pensions manager Angelika Tagel said that Nordea always stresses the need to educate clients in savings matters. She said that Nordea’s clients form the majority of the fund holders, but recently clients have come from competitors, too.